IDnow specializes in secure auto- and video identification and electronic signatures. This enables companies to acquire customers and complete transactions faster and more easily without violating money laundering regulations.
The Investment of the European Investment Bank ffalls under the European Growth Finance Facility (EGFF), which was made possible through the guarantee of the European Fund for Strategic Investments (EFSI). This is intended to close a gap in quasi-equity financing in Europe. European later-stage startups in particular often suffer from a systemic shortage of non-dilutive large-scale financing for growth investments in tangible and intangible assets.
European Investment Bank loans aim to make Europe more competitive
The benefit of the EFSI in this case is that it significantly improves the bank's risk-bearing capacity. The EFSI is a key pillar of the Investment Plan for Europe, in which the European Investment Bank and the European Commission work together as strategic partners. Thanks to loans from the European Central Bank, the European economy becomes more competitive.
Ambroise Fayolle, Vice-President of the European Investment Bank (EIB), explains:
"IDnow, which is receiving an EIB loan for the first time, will need to invest significantly in its research, development, and commercialization activities. This loan is an excellent example of how the EU bank, through the Investment Plan for Europe, can support innovation, particularly in sensitive areas such as the fight against money laundering and terrorist financing, and cybersecurity, which are of great strategic importance for the EU and its economy."
The projects and agreements approved so far for financing with EFSI guarantee are expected to mobilise EUR 535.4 billion in investments and benefit over 1.4 million start-ups and small and medium-sized enterprises across all EU countries.
The European Commissioner for Economic Affairs, Paolo Gentiloni, says:
"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 online business environment, one of the goals of our digital finance strategy."
“Flexible financing from the EIB helps us invest in development faster”
IDnow-CFO Joe Lichtenberger:
"COVID-19 has significantly boosted demand for digital services, and thus for our 'Verification as a Service' solution, across various industries and regions. The EIB's flexible financing helps us invest more quickly in the development of the platform and capitalize on the business opportunities. The EIB is the ideal partner to help us establish ourselves as a leading European provider of identity verification."
Unmanipulable identity verification with immense market potential
With his Identity verification as a service platform IDnow is committed to making the connected world a safer place. IDnow's tamper-evident 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 identification document, allowing it to reliably detect counterfeit documents.
Other backers of the Munich-based startup include venture capital investors Corsair Capital, BayBG, Seventure Partner, G+D Ventures, and a consortium of various business angels. Its more than 250 customers include leading international companies from various industries, such as Bank of Scotland, Commerzbank, Sixt, Telefónica Deutschland, UBS, and Western Union, as well as fintechs such as N26, Smava, and Wefox.
