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Digital ID Firm Socure Raises $450M as It Targets Government

The New York-based company is pushing into the public sector as more agencies lean on the latest tools to prevent fraudulent claims for services and benefits. The funding reflects digital ID’s move into the mainstream.

Hands typing on a laptop with a lock symbol hanging in the air above them.
Digital ID verification provider Socure, which recently expanded into government, has raised $450 million in a new funding round.

The software provider said that its valuation has hit $4.5 billion.

The new capital follows by seven months a $100 million Series D funding round that gave the company a $1.3 billion valuation as bookings increased by some 500 percent year over year, according to Socure.

This new Series E round was led by Accel and included new investors Bain Capital Ventures and Tiger Global, along with existing investors Commerce Ventures, Scale Venture Partners and Sorenson Ventures.

Socure said it plans to use this fresh capital for product innovation and its fledging push to gain more market share in the public-sector space. The funding also will help the company hire and retain product, data science and engineering professionals, according to a statement from Socure, as well as boost its fraud prevention technology, among other tasks.

“With this additional capital, we will substantially increase our level of commercial velocity and intensity in solving complex customer and societal problems, while maintaining our Day 0 founder’s mentality and continuing to attract the market’s best product, data science and engineering minds to join our already incredibly talented team,” said Founder and CEO Johnny Ayers in that statement. “We will remain laser focused on our mission to verify 100 percent of good identities and eliminate fraud on the Internet while holding ourselves to the highest quality standards and cementing Socure as the top performing company in the industry.”

The New York-based company recently hired Matt Thompson as general manager of the public-sector space, bringing his expertise in digital identity and biometrics to the company.

Among his responsibilities is helping clients make sure that people who apply for benefits and services are who they claim to be — a job that, in part, reflects the spike in unemployment and other types of fraud during the pandemic.

As Socure tries to gain a foothold in the government technology space, it continues to serve such clients as banks, payment providers, crypto exchanges and financial technology operations. As more consumers and citizens turn to digital ID tools, Socure also is trying to expand in telehealth, e-commerce marketplaces and online gambling.

In announcing this new funding round, Socure reported that it has booked “five consecutive quarters of record year-over-year revenue growth.”