Middesk Raises $57M Toward Business Identity Improvements

Identity platform Middesk, which works to automate business verification and underwriting, has raised $57 million in a Series B round to fund new products, scale its team and provide education on business identity, according to a press release Thursday (June 9).

“We believe that more companies working together is good for the economy,” said Kyle Mack, CEO and co-founder of Middesk. “By accelerating trust between businesses, we can enable more businesses to access the products and services they need to grow and thrive.

“More successful companies mean more businesses are working together and more jobs are being created.”

Founded in 2019, the company is also working to address the difficulties involved in onboarding new customers. The solution Middesk provides offers the tools, data and documents needed by banks, insurers and other companies to help automate the onboarding process.

With the service, users can get complete up-to-date data for businesses, getting ways to notify service providers automatically of changes to customer bases so they can make more informed decisions, per the release. The idea is to let customers get the critical products they need to maintain a business.

In 2020, Mack talked to PYMNTS about the ways businesses can cut out risks involved in their know your customer (KYC) processes.

See also: Middesk CEO On Helping FIs And FinTechs Derisk KYB

At the time, he said that while there had been some “immense” innovation for consumer onboarding, business customers hadn’t seen as much of it.

He added there had been a lot of unstructured data coming in from various sources, so financial service providers had to make sense of it to try and keep up with regulations. At the time, the company had just joined Visa’s Fintech Fast Track Program.

Mack said there had to be a focus going forward around combating fraud risks and promoting compliance, along with working with the customer journey.