Identification verification and fraud prevention firm Socure introduced Thursday that it raised $156 million in a strategic development funding valuing it at $5.2 billion.
The Incline Village, Nevada-based firm can be buying Austin-based agentic AI startup Fravity because it appears to automate extra of the labor-intensive work concerned in investigating monetary crime.
Summit Companions led the funding, which incorporates each main capital and a secondary tender provide for workers. Goldman Sachs Alternate options, Wells Fargo, Docusign and others additionally participated. Socure didn’t disclose the phrases of its acquisition of Fravity.
With the newest funding, Socure has raised over $742 million in disclosed funding since its 2012 inception. It was beforehand valued at $4.5 billion on the time of its Sequence E spherical in 2021. The corporate didn’t break down how a lot of its elevate was main and secondary capital.
Fast development as fraud surges
The transactions come as Socure says it’s seeing each speedy development in its personal enterprise and a pointy rise in more and more refined fraud. The corporate is refreshingly open about its financials, telling Crunchbase Information that it ended the second quarter with $364 million in annual recurring income, up 63% from a 12 months earlier, and added 95 clients throughout the quarter, together with Circle, Cox Automotive, MoneyLion and Login.gov. It additionally claims to be rising “profitably.”
Socure makes use of AI and machine studying to assist banks, fintechs and authorities businesses confirm identities to allow them to “approve actual clients immediately whereas stopping fraud.”
It now has greater than 3,000 enterprise clients. They embrace 19 of the 20 largest U.S. banks, greater than 600 fintech firms, main sportsbook and prediction-market operators, and 160 public-sector organizations. Particularly, a few of these clients embrace Capital One, Citi, Chime, Robinhood, DraftKings and Revolut. The corporate’s income mannequin mixes usage- and transaction-based SaaS.
AI creates each a chance and an issue
Socure co-founder and CEO Johnny Ayers mentioned AI is creating each a chance and an issue for the enterprise. For instance, Socure noticed an 8,000% improve in AI-driven fraud throughout its community final 12 months, in keeping with the corporate, as generative AI and different instruments make it simpler to create convincing pretend identities and automate assaults.
On the identical time, AI might assist tackle one of many extra pricey components of fraud prevention: investigating the massive variety of circumstances and alerts that automated programs flag for human evaluation.
That’s the place Fravity is available in.
Automating fraud investigations
Fravity has constructed an AI-native platform that makes use of brokers to automate fraud, threat and compliance investigations. Its know-how will probably be integrated into Socure’s RiskOS platform as RiskOS_Agents, initially specializing in watchlist screening and monitoring and know-your-business checks.
Socure and Fravity already share a number of enterprise clients that use the 2 merchandise collectively, in keeping with Socure. Throughout its present deployments, Fravity has lowered value per case by 80%, sped up case decision fivefold and lower false positives by as a lot as 70%, the businesses say.
The acquisition places Socure extra straight into what id intelligence firm Liminal estimates is a $71.1 billion monetary crime investigation market. The issue is especially acute at banks, the place 53% spend a minimum of an hour reviewing every alert, and 37% manually evaluation greater than 40% of alerts, in keeping with Liminal.
As AI will increase the amount and class of fraud, Ayers argues that the id layer — figuring out whether or not folks and more and more AI brokers are who or what they declare to be — is turning into extra important to doing enterprise on-line.
“I consider there are two kinds of firms that matter within the AI-driven world financial system: these which might be AI-native, and those who combat the implications of AI acceleration,” he mentioned in an announcement.
Increasing past monetary companies
The funding follows a interval of enlargement for Socure past its monetary companies roots. In Might, the corporate received a five-year, $163 million federal contract to offer identity-proofing know-how for Login.gov. It’s also pushing additional internationally.
Socure had greater than 550 staff as of March 2026, greater than 100 greater than it had a few 12 months in the past, in keeping with Ayers.
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Illustration: Dom Guzman
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