Security breaches occur almost on a routine basis all over the world, where sensitive and private information is stolen from company servers by malicious hackers looking to make a profit out of private confidential information. Everything from passwords, credit card, and social security information is stolen every year as hackers exploit the weaknesses in system security. Just last year, more than 2.7 billion records were breached in a singular incident in the US, and damages can run into trillions of dollars when the entire world’s security breaches are counted together.
This is why startups like Onfido which uses AI to strengthen the security of companies are gaining prominence all over the world. The company just announced that they raised $50 million in its latest round of funding to further develop their technology and address this growing problem in the industry. Onfido uses the technology of AI to verify whether people say who they are while using digital platforms. It is an efficient and faster way to track data compared to other technologies.
Onfido has grown rapidly since its inception in London, and now most of their work is done from their offices in San Francisco. The CEO of the company in a recent interview stated that they currently getting most of their business from the US, and half of their new customers are based in that country.
Onfido uses a robust system where it merges computer vision along with AI technologies to look for some 4500 various types of identity markers and documents while verifying a person. The company uses a technique called ‘facial liveness testing’ which analyzes patterns that are invisible to the naked eye.
Onfido has already accumulated a roster of 1500 clients, and its customers range from financial services to gaming companies. The company has witnessed a growth figure of 342 percent in the year 2018, and it has verified tens of millions of documents to date, which is very impressive for a startup company.
The $50 million figure was raised from a Series C2 funding round and is being led by some of the top institutional tech investors in the industry. SoftBank Investment is leading this investment round, while Salesforce Ventures and M12Capital along with some other venture capital firms are partnering up to participate in this round of investment. M12Capital is the new name that was given to Microsoft Ventures, which just shows how big the problem is and how the biggest companies are tackling to solve this problem.
SoftBank is not using their Vision Fund for this round of investment on Onfido, but many of the companies that are backed by the Vision Fund include the likes of Didi and Uber which handle millions of sensitive user information on a daily basis. Companies like Uber are trusted by their users in order to handle their personal data in a secure manner, and so they need to depend on the services of Onfido.
Even Microsoft and Salesforce have a stake in the industry as they have businesses that rely on handling data in a safe and secure manner, and will benefit its companies like Onfido get better at protecting big companies from security breaches. Onfido still has not confirmed publicly about its latest valuation figures, but many believe that it is now more than a $100 million after the Series C2 funding round.