Munich, Luxembourg — IDnow, a leading provider of Identity Verification-as-a-Service solutions, receives 15 million in growth funding from the European Investment Bank. The funds will be used for IDnow’s research, development and international expansion. The financing of the Bank of the EU is made possible by the Investment Plan for Europe.
The European Investment Bank (EIB) is awarding EUR 15 million in growth financing to the German identity verification platform IDnow. IDnow specializes in secure remote auto and video identification and electronic signatures. Companies can thus acquire customers and carry out transactions more quickly and easily without violating “Know Your Customer” and money laundering regulations. The investment will primarily go towards IDnow’s research and development activities and international expansion.
The financing falls under the European Growth Finance Facility (EGFF), made possible by the guarantee of the European Fund for Strategic Investments (EFSI). EGFF is designed to fill a gap in quasi-equity financing in Europe. This gap is caused by structural market failures in providing suitable venture capital to companies that have already received venture capital and are now in a later stage. European small, medium and mid-cap companies often suffer from a systemic shortage of non-dilutive large-scale financing for growth investments in property, plant and equipment and intangible assets. The benefit of the EFSI in this case is that it significantly improves the bank’s risk-bearing capacity.
The EFSI is the main pillar of the Investment Plan for Europe, in which the EIB and the European Commission work together as strategic partners. With its loans, the EIB is helping to make the European economy more competitive. In addition, there is the European Investment Advisory Hub (EIAH), which helps public and private project promoters structure investment projects in a more professional manner.
Ambroise Fayolle, EIB Vice-President overseeing EFSI as well as the Bank’s operations in Germany, said: “IDnow, which is receiving an EIB loan for the first time, has to invest significantly in its research, development and commercialization activities. This loan is an excellent example of how the EU’s bank can use the Investment Plan for Europe to foster innovation, especially in sensitive areas such as the fight against money laundering and terrorist financing, as well as cybersecurity, which are of great strategic importance to the EU and its economy.”
European Commissioner for Economic Affairs Paolo Gentiloni said: “As more and more of our interactions take place online, it is more important than ever that we strengthen data security and fraud prevention. It is right that the Investment Plan for Europe contributes to these efforts. This support will enable the German platform IDnow to expand its services for digital identity verification of customers and business partners. We are investing in a secure business environment online, one of the goals of our digital finance strategy.”
IDnow CFO Joe Lichtenberger said, “Covid-19 has noticeably boosted demand for digital services, and thus for our ‘verification as-a-service’ solution, across various industries and geographies. EIB’s flexible financing helps us to invest faster in the development of the platform and take advantage of business opportunities. The EIB is the ideal partner for us to establish ourselves as a leading European identity verification provider.”
With its Identity Verification as a Service (IVaaS) platform, IDnow is on a mission to make the connected world a safer place. IDnow’s unmanipulable identity verification is used in all industries where companies conduct online customer interactions that require the highest level of security. IDnow technology uses artificial intelligence to ensure that all security features are present on an ID document and can therefore reliably detect counterfeit documents. Potentially, the identities of more than 7 billion customers from 193 different countries can be verified.
IDnow covers a wide range of use cases both in regulated industries in Europe and for completely new digital business models worldwide. Through the platform, identity flow can be customized on a case-by-case basis to meet regional, legal and business requirements.
IDnow is supported by venture capital investors Corsair Capital, BayBG, Seventure Partner, G+D Ventures and a consortium of renowned business angels. Its more than 250 customers include leading international companies from various industries such as Bank of Scotland, BNP Paribas, Commerzbank, eventim, Raisin (Weltsparen), Sixt, solarisBank, Telefónica Deutschland, UBS and Western Union, as well as fintechs such as Fidor, N26, smava and wefox.
The European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union. Its shareholders are the member states of the EU. The EIB lends long-term funds to sound projects that meet EU objectives.
The investment offensive for Europe
The Investment Plan for Europe aims to boost investment in Europe and thus create jobs. Through guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the EIF are able to assume a larger share of the project risk, making it easier for private financiers to also participate in the projects. The projects and agreements approved so far for EFSI-guaranteed financing are expected to mobilize €535.4 billion in investments and benefit over 1.4 million start-ups and small and medium-sized enterprises across all EU countries.