AI fraud verification startup secures $20M in seed funding
TransCrypts has secured CDN $20 million in a seed funding round led by Pantera Capital to advance the firm's AI fraud and digital identity verification program.
The Canadian startup, founded in 2020, has reported significant growth, expanding its client base 15-fold over the past 24 months. According to the company, it's now serving more than 450 enterprise customers and four million users globally. This funding round saw the added participation from Lightspeed Faction, Alpha Edison, Motley Fool Ventures, California Innovation Fund, and individual investor Tomer London. Existing stakeholders include Dallas Mavericks owner and businessman Mark Cuban plus funding from Techstars, Alumni Ventures, Protocol Labs, Apertu Capital, Informed Ventures, Asymmetry Ventures, and The Atland Fund.
Founded by cousins Zain Zaidi and Ali Zaheer, the company's concept emerged from the University of Toronto Scarborough's incubator program, The Hub. It has since attracted backing from prominent technology and venture capital investors, reflecting broader trends in the growth of blockchain-enabled platforms focused on data security and user-centric models.
TransCrypts co-founder and Chief Executive Officer Zain Zaidi stated that the company's focus is on empowering individuals within the digital identity ecosystem.
The company focuses on self-sovereign digital identity, aiming to give individuals direct control over their personal records, including employment, health, and educational information.
The approach leverages blockchain and cryptographic technologies to allow individuals to manage their own verified credentials, rather than relying on third-party data holders.
Franklin Bi, General Partner at Pantera Capital, added, "TransCrypts addresses one of the most pressing challenges of our time: trust in an era of AI-driven fraud and data manipulation. TransCrypts is giving individuals full control of their credentials, ensuring privacy, security, and compliance at a scale that only blockchains can handle. "
Following its latest funding, TransCrypts plans to develop its platform beyond employment credentials to include health and educational records. With recent HIPAA certification for its U.S.-based customers, the startup has gained the capability to allow users to control their health data, information that has traditionally been managed by healthcare providers and institutions. As a result, the company expects substantive traction within the healthcare verification sector.
The company also announced plans to double its team size over the next year. While maintaining an operational base in San Francisco, TransCrypts will focus new hiring efforts on a co-headquarters located in downtown Toronto, reflecting its North American footprint and the growing importance of Canadian technology clusters.
TransCrypts reports that uptake among enterprise customers, including several companies ranked in the Fortune 100 and Fortune 500, has increased significantly. Employers, landlords, and background check agencies have identified the need for privacy-compliant and tamper-resistant user verification processes.
Image courtesy of CNW Group/TransCrypts. From left: TransCrypts Co-Founders, CEO Zain Zaidi and CTO Ali Zaheer.
