Biometric authentication company Veridium has closed a $16.5 million Series B round, it announced yesterday.
The round was led by Michael Spencer, a UK-based entrepeneur, with participation from Citrix Systems and Michael Powell. Veridium, formerly known as Hoyos Labs, also announced this month that it had received a grant worth $150,000 from Digital Financial Service Lab. As part of the investment, Spencer will join Veridium’s board of directors.
“In today’s digital age, global organizations are challenged to secure their most critical assets against advanced threats in a way that’s both convenient and secure,” said Michael Spencer. “Veridium is unique in the industry because it provides organizations an enterprise-ready authentication solution to address those problems with the adoption of biometrics – while increasing security and convenience.”
Credential theft (for example via spear-phishing campaigns) and credential stuffing (using reused combinations leaked online) are a huge factor in successful cyberattacks. But the difficulty of remembering multiple complex passwords means that many users continue to use (and re-use) easily guessed combinations which increase vulnerability, even if it’s against company policy.
Going ‘passwordless’ is seen by many as the way to combat this problem. Veridium’s identity and access management platform replaces passwords with biometric identification via a user’s smartphone, including native face and fingerprint recognition as well as Veridium’s own fingerprint recognition technology.
Financial services institutions in particular – which have long had a reputation for being ahead of the curve in terms of their maturity when it comes to information security – are embracing alternative identity and access management solutions. They also make up a significant chunk of Veridium’s current customer base – the company claims to have several of the world’s largest financial organisations as clients.
“Deploying biometric authentication is a clear win for financial service organizations,” said Michael Powell. “Organizations continue to see the benefits of biometric authentication, including simplifying and securing the login process and identifying with precision who you are dealing with.”
Veridium will be using the funding for continued product development, as well as to expand its sales reach across the Americas, Europe and Asia.
“We are delighted to have the support of Michael Spencer, Michael Powell and Citrix to continue our journey to build best-in-class biometric authentication solutions,” said James Stickland, Veridium’s CEO. “With the financing, we’re committed to continue driving innovation of our biometric authentication solutions while driving global scalability to meet customer needs.”