Identity Platform Authenteq Raises $5 million for Blockchain ID Verification

According to a VentureBeat report published today, Reykjavik-based identity verification company Authenteq has raised $5 million in funding, led by Draper Associates and Capital300.

In a slightly unusual move, Autheneq decided to have two closings of its Series A round. The first close just took two weeks to complete. The second close has not occurred yet, as the company is working to take on new investors to be included in the round.

According to Crunchbase data, Authenteq has closed $7 million over seven rounds since 2015. The most recent $5 million closing took place on January 10th.

CEO Kari Thor Runarsson explained his reasoning for the two closings in a statement:

“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.”

Authenteq enables users to verify their identity and create and control their own digital ID, which is encrypted and stored on the blockchain. Even Authenteq themselves cannot access your ID. The initial signup process only takes one minute, and only three seconds thereafter. Their website lists “online marketplace[s], online betting, financial service[s] and recent [sic] ICO[s] (Initial Coin Offering) or taken sales” as common applications of their technology, which can be used either with their API or plug-in.

The company only launched publicly late last year, and quickly signed up over ten clients, namely, companies who need to comply with KYC/AML (Know Your Customer/Anti-Money Laundering) regulations.

Runarsson went on to comment on the benefit of having investors like Draper, who has invested in Skype, Tesla, SpaceX, Baidu, Coinbase, Robinhood, and Twitch, on his team:

“Having forward-thinking investors such as Tim Draper continue his support of Authenteq after backing the company in the seed round and a convertible note shows his interest and dedication to the space,” said Runarsson. “And having investors like Capital300 who show the entrepreneurial spirit of getting stuff done in record time really gives us confidence that we have picked the right investors for our continued growth.”