Socure Closes On $35M In New Round Of Funding

Socure, the identity verification and fraud prevention software provider, announced on Tuesday (Aug. 25) that it has raised $35 million in funding.

The round was led by Sorenson Ventures with an assist from existing investors Commerce Ventures, Scale Venture Partners and Flint Capital, the New York-based company said.

In addition, there was new strategic investor participation from Citi Ventures, Wells Fargo Strategic Capital and MVB Financial Corp. This brings Socure’s total funding to $96 million.

Socure said it plans to use the funds to support the company’s growth, enhance its machine learning capabilities, and further its mission to eliminate identity fraud and become the most trusted source of identity verification. 

“We are grateful to have had significant investor interest despite the current economic environment, and are proud to have taken less money than was on the table,” said Thomas Thimot, CEO of Socure, in a statement. “…We are prioritizing investment in new verticals, talent, products and capabilities.”

Last year, Socure raised $30 million in Series C funding that was led by Scale Venture Partners and included participation from existing investors Commerce Ventures, Flint Capital, Two Sigma Ventures and Synchrony. New investor Sorenson Capital also joined the round. At that point, Socure had raised $57.5 million in venture funding.

“This funding will enable us to grow our footprint in new strategic U.S. market sectors that are in need of accurate, automated identity verification technology, including healthcare and the public sector,” Thimot said at the time. “We will invest in the talent required to continue innovating and expanding our machine learning-based predictive analytics platform.”

That funding followed a strong year for Socure in 2018. The company said its annual revenue grew by more than 300 percent as production volume increased to nearly 50 million calls. It reported that installation of its software grew to more than 100 digital banks, lenders, brokers and payments providers, the company said in the press release. It also noted that its customers saw average fraud rate reductions of 80 percent.

Also last year, Socure and PYMNTS collaborated on the Digital Identity Lifestyle Capsule. The report’s survey revealed that satisfaction with identity verification in the financial services market topped other markets at 73 percent. That’s considerably higher than the satisfaction rates of eCommerce at 69 percent and healthcare at 68 percent.