German identity verification platform IDnow has been bolstered in its growth ambitions after it was announced the European Investment Bank (EIB) will provide the firm with €15 million of growth funding.
IDnow specialises in elevating the security for partners through secure, remote auto and video identification, and electronic signature services. It also boosts firms when it comes to AML and KYC procedures, which have taken on increased importance following the pandemic.
EIB Vice-President Ambroise Fayolle, who is responsible for EFSI and the bank’s operations in Germany, emphasised: “IDnow, a first-time borrower for the Bank, depends on significant R&D and marketing investments related to commercialisation.
“The transaction is an excellent example of how the EU bank, with the support of the Investment Plan for Europe, can facilitate the development of innovation, in particular in sensitive policy areas such as anti-money laundering, counter-terrorist financing and cybersecurity, which are of utmost importance for the European Union and its economy.”
The EGFF’s main ambition is to address quasi-equity gaps as a result of structural market failures across the European Union in the provision of adequate risk capital to late-stage, venture-backed companies.
The body places a specific emphasis on European small and medium-sized enterprises (SMEs), firms that have endured an especially turbulent time in recent years.
European Commissioner for the Economy, Paolo Gentiloni, stated: “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.
“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.”
CFO of IDnow Joe Lichtenberger concluded: “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.
“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.”