Digital innovation has transformed how consumers and businesses access a range of online services – from streaming media, booking travel, setting up bank accounts, or financing a car. As more and more high-value services are performed through digital channels, it is increasingly important for businesses to know who is using their platforms. Many fintech applications need identity verification to comply with ‘Know Your Customer’ (KYC) regulations, while online marketplaces need it to maintain trust and safety on their platforms. These requirements have created a huge market opportunity for identity verification technology – a market TCV has been tracking for several years, looking for the right opportunity.
We found such an opportunity and are thrilled to announce our investment in Trulioo, the market leader in global consumer and business identity verification technology. Through its network of 450+ data partners, Trulioo can verify identities across over 5 billion individuals and 330 million businesses in more than 195 countries and territories. That’s the broadest reach of any vendor in its industry – and it’s all delivered via a single API.
For Trulioo’s customers, the opportunity is to maximize the number of clients they onboard globally via a frictionless experience, while seeking to ensure regulatory compliance and preventing fraud. We believe, this compelling value proposition has created significant momentum in Trulioo’s business – revenue has more than doubled over the past year, and growth is accelerating.
And while Trulioo has built a market-leading identity technology business, its ambition is to become the first global end-to-end identity verification platform by introducing AI/ML functionality and additional software applications. We are confident that our investment and partnership will help Trulioo accelerate its growth and achieve its platform vision even sooner.
Identity Verification Data with a Difference
Trulioo commands a leading position in its field, providing an API-driven marketplace of rich identity data. This is triangulated across multiple sources, normalized, and then delivered to customers via a single, modern API. Customers embed Trulioo’s API into their onboarding and compliance platforms to perform KYC/KYB (Know Your Business) verifications. The API and data-centric approach renders accurate identity verification quickly and enables a frictionless customer onboarding experience.
Trulioo’s identity data marketplace is built from a rich network of relationships with over 450 country-specific data providers that the company has developed over more than a decade. This adds up to a compelling value proposition for companies with global growth ambitions and has established Trulioo as the market standard for international identity verification. As Trulioo grows its customers and data sources, it creates a virtuous cycle that makes its value proposition more attractive to both sides of the marketplace. Finally, Trulioo has built a rich set of value-added features, rendering it well positioned to become an end-to-end identity technology platform.
This powerful data-driven proposition quickly drew our attention, and the people who are working to build Trulioo into a franchise technology leader are just as impressive. Founded in Vancouver, Canada a decade ago, the business is led by Steve Munford, a veteran software industry CEO, who TCV has known for more than a decade. Previously, Steve has scaled multiple highly successful companies including Carbonite, Absolute Software, and Sophos.
Steve joined Trulioo in 2020 and is surrounded by a world-class team including COO Zac Cohen (formerly Strategy & Operations at Global Relay), CTO Hal Lonas (former CTO of TCV-backed Webroot); CFO Leigh Ramsden (formerly CFO at Absolute Software); CRO Matt Schatz (former SVP of Sales at WP Engine); along with 240+ talented team members. That’s quite a line-up, and we’re delighted to work with everyone there to help Trulioo execute its growth strategy.
Glowing References from all Angles
Our conversations with Trulioo have been exciting from day one. It was immediately obvious that we share a belief in the vast market potential for identity verification, in addition to our conviction that the winning technology will increasingly need to be global, creating a unique opportunity for Trulioo to be the end-to-end platform of choice.
We first met Trulioo’s team in 2015 and heard rave reviews about the product from customers within TCV’s portfolio. When Steve joined Trulioo in 2020, we increased our dialogue with the team – holding multiple meetings where we discussed the company’s growth strategy and Steve’s vision for the business.
On top of our portfolio references, we conducted calls with many of Trulioo’s customers, partners, and identity market observers. The market feedback was effusive about the company’s value proposition, with customers seeing its product as clearly differentiated from other vendors thanks to its 360-degree data-driven approach.
A Shared Belief in the Global Identity Verification Opportunity
TCV has already invested extensively in the companies and industries that Trulioo serves which has fueled our excitement and conviction in the company’s value proposition. We believe that fintech companies – including payments and remittance companies, challenger banks, and trading platforms – will continue to grow globally. It’s why we’ve backed leaders – including Payoneer, WorldRemit, Nubank, Revolut and Wealthsimple – that are embarking on global growth agendas.
Given the importance of API-driven identity verification for digital KYC and other related applications, we believe Trulioo will be a valuable partner as fintech vendors grow. And, as many companies across verticals embed fintech capabilities into their products, we think Trulioo’s offering will resonate with an even broader market.
We’ve also seen firsthand how critical it is to maintain trust and safety for online marketplaces, through having Airbnb, Nerdy, and Rover in our portfolio. Similarly, we’ve witnessed many other industries, including e-commerce and gaming, investing increasingly in identity verification technologies, using trusted third-party sources, as they pursue global growth agendas.
Drawing on experiences from our portfolio companies, we also have high conviction in the rising importance of governance, risk, and compliance (GRC) technology, and have backed leaders including AxiomSL, OneTrust, ETQ, and Watermark in this space. As a critical aspect of their GRC strategies, we think identity verification – and Trulioo in particular – will grow in importance as global digital onboarding continues to expand.
A Powerful Partnership to Build on
We’re delighted at this meeting of minds and ambitions in a vast, emerging industry with powerful tailwinds. Trulioo is addressing a huge problem that applies to many of the most innovative, fastest growing verticals, and we are excited to help them seek to revolutionize their industry.