Blockchain digital identity startup, Authenteq, raises $5 Million to fund its identity verification solution. Authenteq is a creator of Trolteq, a blockchain identity verification technology, based in Reykjavik and Berlin. The Blockchain technology protects users privacy while verifying their identity without entering any data.
Draper Associates led the funding for the Iceland based company, completing the funding rounds in just 2 weeks. Kari Thor Runarsson, CEO of Authenteq, also reveals that the company is preparing for a second round of Series A financing for additional investors shortly.
“The reason we decided to do two closings is we were introduced to an investor (Capital300) with a startup mindset of getting things done and felt it was a great challenge to try to finish all due diligence and paperwork in two weeks after the term sheet was approved. It was sort of a field test for us to see if they really were as agile and dynamic as they claimed to be during our discussions. We were honestly surprised how smoothly it went, despite a very thorough due diligence and legal process.”
More about the ID verification platform
Authenteq offers an instant verification process that takes 60 seconds to verify, being the fastest onboarding of ID verification process in the market. The reason this is possible is through the leverage of both AI and blockchain technology. This enables the user to verify using government-grade facial recognition algorithms.
How it works is that Authenteq stores a hash string on the blockchain that only verifies the user, without storing any identification information after the verification process. McKinsey Survey estimates verification market to double up in next four to five years.
The company had publicly launched its tool in late 2018, signing up a number of clients within a few months. Clients being companies in the financial industry, online marketplaces and professional services that comply with KYC and AML regulations.
It stands out in the market due to its eID that gives users control and ownership of their online identity. Trolteq aims at curbing endemic internet trolls of social media sites, banning users with fake identity to re-register.
Tim Draper himself commented on the investment.
“I believe that Authenteq is the beginning of the solution to true and pure identity, which may eliminate many of the security concerns in the market today. Their product is simple and elegant.”
When people think about blockchain technology, they tend to think about it being used for payment solutions. Blockchain is more than just payments and this is just another use case.