IDnow targets international expansion with €15m cash injection
Fraud prevention and verification company to use European Investment Bank funds for R&D
Online identity verification and fraud prevention firm IDnow has received a €15m (£13.6m) funding boost from the European Investment Bank (EIB).
The investment will primarily support IDnow’s research and development (R&D) activities as well as its international growth ambitions.
The funds will be allocated as part of the European Growth Finance Facility (EGFF), which is designed to provide funding to so-called late-stage venture-backed companies struggling to generate investment funding.
The EGFF forms part of the wider European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe under which the EIB and the European Commission aim to boost the competitiveness of the European economy.
“IDnow has experienced overwhelming demand for its verification-as-a-service across multiple industries and countries, with Covid-19 significantly increasing the need for digital services,” IDnow CFO Joe Lichtenberger said.
“The flexible financing structure from the EIB will allow us to accelerate our investment in developing the platform to capitalise on these opportunities.
“The EIB is an ideal partner to support us in becoming Europe’s leading provider in identity verification,” Lichtenberger added.
Identity verification and fraud prevention within industries has come under increasing scrutiny over recent years, following the introduction of the EU’s fifth Anti-Money Laundering Directive and general data protection regulations.
“As ever more of our interactions move online, it’s more important than ever that we strengthen data security and fraud prevention. And it’s right that the Investment Plan for Europe contributes to those efforts,” European Commissioner for the Economy Paolo Gentiloni said.
“This support for German platform IDnow will enable it to expand its services for digital identity verification of customers and business partners alike.
“We are investing in a safer online business environment, an objective of our digital finance strategy,” Gentiloni added.