A$3.1m seed round of funding has been secured by IDPartner Systems, a start-up that streamlines online identity verification through a network of financial institutions.
Abstract Ventures is the round’s lead investor, and Foundation Capital, Circle Ventures, Firsthand Alliance, Correlation Ventures, Success Venture Partners, and Aleo also participated.
Aaron VanDevender (former chief scientist at Founders Fund), Lance Armstrong, and Joe Grundfest (former SEC commissioner and co-founder Financial Engines) are among the angel investors in the round.
IDPartner solves a challenge that affects all five billion Internet users: how to authenticate their identities and develop trust online.
The firm, which was founded by former Santander identity and payments employees, collaborates with OneID UK, Akoya, and others to develop a product which enables individuals to manage their online identities and select a preferred authentication partner from an array of trusted providers, including banks and other financial firms.
It also helps businesses by delivering a high-assurance, low-friction reusable mechanism for clients to safely access their online services from any location.
In addition, the firm assists banks and other partners in becoming necessary to their clients by enabling safer, quicker, and simpler onboarding and login throughout the whole internet.
“By giving banks the tools to manage digital identity as a new asset class and by aligning marketplace incentives to drive adoption by companies and users, we can transform the most frustrating identity journeys into an experience as easy and familiar as social login,” said Rod Boothby, IDPartner CEO.
“Our partnership with IDPartner will give consumers more choice and visibility into where and how their financial data is being used,” added Paul LaRusso, CEO of Akoya.
“We’re focused on giving all consumers secure access to their data and 100% of our requests go through APIs. This agreement represents a key step in that journey.”
IDPartner is inspired by the success of the Nordic BankID ecosystem, which has 99% acceptance, is used multiple times each day by the typical individual and has practically reduced fraud.
BankID Norway is a pioneer in the IDPartner marketplace, which will provide verification through the majority of large banks in the United States, the United Kingdom, and abroad.
Other members include Bonifii, the supplier of the US credit union digital ID MemberPass, and Airside, the inventor of a TSA-approved user-controlled digital identification software used by and the world’s largest airline.
“Identity remains one of the largest unsolved problems on the Internet,” stated Ramtin Naimi, general partner at Abstract Ventures. “We are excited to invest in IDPartner and support their mission to overcome the cold start problem for reusable digital identity.”
The IDPartner marketplace is made up of certified trusted partners and enterprises. Individuals will be able to choose and use only verified partners for their reusable ID and verification needs as they navigate their digital lives.
Adam Tsao, acting CEO, COO, and founder of Airside concluded, “It’s important that people can take back control of their digital identities, online and in-person. We’re pleased to team-up with IDPartner to help people create trusted connections when needing to seamlessly verify and share their digital identities with ease and peace-of-mind.”