ID.me, a secure digital identity network, announced it has raised $100 million in a Series C funding round led by Viking Global Investors. Counterpoint Global (Morgan Stanley), PSP Growth, Lead Edge Capital, CapitalG, WndrCo, Willoughby Capital, BoxGroup, and Moonshots Capital joined the round. Prominent investors include Marcelo Claure, Alexa von Tobel, and Dan Rosensweig. The company is now valued at $1.5 billion, ID.me said in its press release.
When Californians log on remotely to update their address or change a registration with the local DMV, there’s a good chance they’re using a software tool called ID.me. According to CEO Blake Hall, 38% of the state’s adults have an ID.me account today—some of the million people the service is adding every two weeks, Forbes writes, adding that the path to billion-dollar-valuation hasn’t been so quick for ID.me. CEO and co-founder Blake Hall launched the company with fellow former U.S. Army Ranger Matthew Thompson in 2010 as TroopSwap, a service verifying Armed Forces veterans, for discounts at participating businesses. Over time, the Harvard Business School classmates realized their log-in process was more valuable than that niche.
They brought on the Estonian, cofounder Tanel Suurhans, as a cofounder and eventually CTO in 2013 and rebranded as ID.me, a tool that still connected veterans, but also healthcare workers, teachers and students, to affiliate discounts, but more importantly providing verification for them to access government portals and private sites.
The COVID-19 pandemic has accelerated a massive digital migration for many critical services. These services require a trusted identity to ensure an individual is who they claim to be while keeping out fraud. Identity verification that serves only one organization is costly and time-intensive. Separate passwords for each application add to consumer frustration. With ID.me, login and identity credentials move with an individual so they only need to verify once.
Recently, ID.me has verified millions of applicants at state workforce agencies in the United States while repelling the largest cyberattack in terms of fraud in U.S. history. Through March 20th, ID.me prevented 1.2 million fraudulent claims from international and domestic criminals — saving taxpayers more than $24 billion. Over 22 states have contracted with ID.me since August 1, 2020.
ID.me simplifies how individuals prove and share their identity online. The ID.me secure digital identity network has more than 39 million members with over 70,000 new subscribers joining daily, as well as partnerships with 22 U.S states, multiple federal agencies, and over 400 name brand retailers.