Cybersecurity companies saw a record number of deals last year. This year, multi-factor authentication is one increasingly hot area within the cybersecurity industry.
Multi-factor authentication (MFA) is a security protocol that requires more than one unique credential to verify a user’s identity for a login, or other transactions. MFA protocols usually call for a combination of at least three credentials: a user-created password; information associated with a user’s device, including mobile phones, security tokens, etc.; and increasingly, unique biometric identifiers, such as a person’s fingerprints, voice profile, IRIS scans, and more.
Startups offering multi-factor authentication solutions are poised to benefit from increased regulations around identity and access management protocols, especially in finance. On March 1st, for example, banks in NYC will have to comply with new cybersecurity regulations set forth by the State’s Department Of Financial Services (DFS). In addition, the rising number of cyber attacks is also creating further demand for multi-factor authentication solutions.
Using CB Insights database we identified 9 cybersecurity startups to watch that are working on multi-factor authentication. We selected these private companies based primarily on CB Insights’ Mosaic scoring algorithm, which uses financial and non-financial signals to assess the health of private companies. The companies are all early-stage startups (seed – Series A) and have all raised at least $100K. The 9 companies on our list all obtained funding since 2016. Half obtained funding in 2017.
1. Sonavation
Sonavation is developing biometric fingerprint reading technology that relies on ultrasound sensors. The company is focused on securing mobile financial transactions, among other uses.
Total Disclosed Funding: $59M
Latest Investment Round: $5M (1/27/2017)
Select Investors: Undisclosed
2. Transmit Security
Transmit Security offers the Transmit Security Platform, which uses mobile devices as the primary delivery mechanism to add any form of primary or secondary identity verification (facial/selfie, eye, touch ID and fingerprint, voice biometrics, SMS, etc.)
Total Disclosed Funding: $40M
Latest Investment Round: $40M Angel (1/15/2017)
Select Investors: Mickey Boodaei, Rakesh Loonkar
3. Socure
Socure’s Social Biometrics solution detects fraudulent users on websites and mobile applications using machine learning algorithms.
Total Disclosed Funding: $19.4M
Latest Investment Round: $13M Series A (12/13/2016)
Select Investors: AlphaPrime Ventures, Two Sigma Ventures, ff Venture Capital
4. BioCatch
BioCatch collects and analyzes more than 400 bio-behavioral, cognitive, and physiological parameters to generate a unique user profile used for identity and access management.
Total Disclosed Funding: $16.6M
Latest Investment Round: $110K Biz Plan Competition (11/21/2016)
Select Investors: Blumberg Capital, Monetary Authority of Singapore, JANVEST Technologies
5. SecuredTouch
SecuredTouch provides behavioral security for enterprise mobility management that analyzes each user’s unique usage behavior.
Total Disclosed Funding: $6.03M
Latest Investment Round: $3.5M Series A (2/7/2017)
Select Investors: Wellborn Venture, Swarth Group, Eshbol Ventures
6. HYPR
HYPR offers the ability to convert any mobile device into a biometric authenticator, extend the power of decentralized biometric encryption to the firmware level. The company also sells a bluetooth-enabled fingerprint sensor.
Total Disclosed Funding: $3.35M
Latest Investment Round: $3M Seed (8/14/2016)
Select Investors: RTP Ventures, Mesh Ventures, BOLDstart Ventures
7. BIOWATCH
BIOWATCH is developing a biometric recognition system that can be integrated into any wearable, mobile payment platform, or smart device for secure authentication.
Total Disclosed Funding: $2.13M
Latest Investment Round: $1.19M Seed (1/19/2017)
Select Investors: SIPCA, Polytech Ecosystem Ventures, MassChallenge
8. SimplifIDe
SimplifIDe is a SaaS platform that enables biometric identification across any device or operating system on a risk-free, pay-as you-go basis.
Total Disclosed Funding: $1.26M
Latest Investment Round: $1M Seed (11/1/2016)
Select Investors: Undisclosed
9. Smile Identity
Smile Identity ties ID documents to a “smart selfie” of a user, creating a universal biometric facial image ID for authentication on any Android device.
Total Disclosed Funding: $150K
Latest Investment Round: $150K Seed (2/8/2017)
Select Investors: 500 Accelerator
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