VU Raises $12 Million To Eliminate Friction Associated With Cybersecurity In Digital Experiences
VU raises $12 million to eliminate friction associated with cybersecurity in digital experiences
Soon, individuals will no longer be required to provide a fingerprint or a driver license to establish their identity — if VU has its way.
The Argentina-based fraud and identity Protection Company announced Monday that it has raised $12 million in Series B funding from investors including software developer Globant, Agrega Partners, NXTP Ventures, Bridge One, the IDB Lab, and Telefónica. According to CEO Sebastián Stranieri, the new funding brings the company's total venture capital investments to $20 million.
Stranieri, who has spent the last two decades working in the cybersecurity industry, came up with the idea for VU in 2007, after spending hours assisting his grandmother in verifying her identity with the Argentinian government in what turned out to be a two-minute process.
“It pushed me to found a company to assist in the creation of frictionless digital experiences,” he told TechCrunch.
VU's technology takes an individual's "online persona" and uses geolocation, biometrics, and user behavior analysis to verify their identity and enable a continuous authentication process that sees and connects their online and offline personas. Simply put, it works primarily with government entities in countries such as Argentina and Ecuador, providing them with a means of verifying whether individuals are who they claim to be.
VU is one of several startups applying technology to fraud and identity management in a global digital identity market that Adroit Market Research estimates will reach over $33 billion by 2025. Sift, which raised $50 million in April at a valuation of more than $1 billion, and Socure, which announced $100 million in Series D funding at a $1.3 billion valuation, have recently attracted investment dollars for similar technology.
VU has grown to over 150 employees in the last three years and now operates in Latin America and Europe, catering to well-known customers such as Santander and Prisma, as well as Latin American governments. Additionally, the company opened its first office in New York, where Stranieri anticipates quadrupling its headcount over the next year.
Moving Forward
The company is currently growing at an average of 85 percent year over year, which he expects to continue in 2021, with 100 percent growth forecast for 2022. Along with New York, VU recently opened an office in Madrid and plans to expand in Italy, France, and the United Kingdom.
As such, he plans to use the additional funding to hire developers throughout Europe and the United States.
Globant's investment in VU is also a form of collaboration. Globant develops software for companies such as Google, Disney, and Apple. They will package VU's digital experience in such a way that businesses can purchase the foundational software and then customize it. VU's technology is currently suited for banks and for providing a one-click e-commerce checkout in which the retailer's system recognizes and confirms the buyer.
“Globant is redefining the digital experience, and their support sends a strong signal to our customers and partners that we are doing well,” Stranieri said. “Their backing, along with that of all of our investors, enables us to take a risk and accelerate our growth.”
