Trust Stamp

regtechauthentication and fraud prevention

FOUNDING YEAR: 2015
LOCATION: United States
Last Update: 08/09/2020

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About

Trust Stamp applies advanced cryptographic techniques and Artificial Intelligence-powered presentation-attack detection tools to biometric and other identity data to create a proprietary non-PII Evergreen Hash. The Hash is unique to the subject and provides a tokenized identity that cannot be reverse-engineered. The Hash constitutes "anonymized data" and is immune to data breaches. Hashes can be compared to Trust Stamp's proprietary Identity Lake, video-streams, photo-ID, and mined data to establish a subject's identity and can be augmented with pivot points to other relevant data to enable zero-knowledge-proofs. Trust Stamp technology is used in multiple industries, including banking, FinTech, KYC / AML compliance, real estate, travel/hospitality, and law enforcement.Trust Stamp has developed over 50 customizable authentication micro-services. Our core solutions use state of the art facial biometrics to create a secure digital identity that can be stored as a biometric hash. The identity can be augmented by proprietary data sources, including public records and social media data mining to attach trust or preference characteristics relevant to the relationship and interaction.

MEDICI Analysis

TrustStamp is a digital verification platform that uses social media and other publicly available data for verifying a user’s identity and providing a unique FICO-like trust score. It further enables the user to improve their score by adding additional information. Trust Stamp launched into Beta on June 1, 2016, at the Next Bank USA conference in Charlotte, North Carolina and is a participant in the QC FinTech Incubator and the National Association of Realtors® REach® accelerator program.

Focus

PRODUCTS & SERVICES

The online verification process comprises of 3 steps i.e. account creation, linking with social networks and sharing of the Trust Stamp and score. Once the score is generated, users can share their score on other platforms in a secured manner. Users have the flexibility of selecting the social network and ecommerce accounts they want to link for their id verification.

REVENUE MODEL

Company charges on a per transaction (ID & score viewed) basis or enterprise SaaS contracts.

MAIN CLIENTS

Trust Stamp has clients across multiple industries

including a major U.S. bank.

EXISTING PARTNERSHIPS

National Association of Realtor

National Association of Estate Agents

PRIMARY PROBLEM SOLVED

Industry publications estimate that in US banking alone, synthetic identities are costing over $20B a year in losses with an estimated $8.5B in opportunity cost from declined transactions that should have been approved. Trust Stamp empowers financial institutions and their customers to confidently transact by providing a new paradigm in Trust & Identity as a Service.

INTELLECTUAL PROPERTY

Patent(s) FILED

company provided insights

Traction

REVENUE

$100k - $499

REVENUE COMMENT:

The investment by Second Century Ventures and participation by NAR REach places a branded and customized version of our product in front of 1.15m realtors with an estimated 100 million encounters with strangers each year. The soft launch with NAR resulted in partnership proposals from multiple listing services, state and local associations and brokerage chains covering an estimated One Million Realtors (r) A survey conducted by NAR indicates that 54% of members would use on a pay per view or subscription basis and 74% of members would use as a member benefit. Extensive customer discovery indicates use by P2P economy participants: Craigslist 50%, Rideshare 50%, Dating Platforms 40% and Payment Platforms 20% to 30% based on pricing. For Craigslist with 30 million transactions per month that would be 15 million transactions each month. If only 5% of the Craisgslist users that say that they would use Trust Stamp actually do, that would be ARR of $18 million with NOI of $14.2 million.

OTHER INFO:

The company has launched an app to improve the safety of peer-to-peer marketplaces like Airbnb, Craigslist, Facebook Marketplace, and Uber (Nov 2017).

People

BOARD MEMBERS AND ADVISORS

Jennifer Bonnett

Kristin Wallace

Mark Birschbach

David Garland

NUMBER OF EMPLOYEES

11-50

INVESTORS:

Frank Hanna

Second Century Ventures

Sixthirty Cyber Fund LLC

Hanna Capital

Second Century Ventures LLC

KEY EMPLOYEES:

Alex Valdes

Andrew Gowasack (CEO); Scott Francis (CTO)

Momentum

FUNDED

NO

TOTAL FUNDING

$400 K

DATE OF LAST FUNDING

Nov 2017

TOTAL FUNDING COMMENT

The company is planning to use the funds to make key additions to their executive leadership team and also to accelerate its product roadmap (Nov 2017).

SEED & PRIOR FUNDING

$400 K

SEED CLOSED ON

Nov 2017

SEED PRIOR FUNDING COMMENT

An undisclosed amount raised in Nov 2017.

LISTED

NO

Innovation Programs

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Trust Stamp

About

Trust Stamp provides Identity and Trust as a Service to facilitate economic and relationship engagements between enterprises and individuals. We use facial biometrics as a replacement for a user name and password and as a means of signing, encrypting and decrypting data. Each user's confirmed digital ID is converted into a biometric hash and encrypted. The digital ID is stored on an enterprise server with optional storage on a smart contract in the Ethereum Blockchain which can be used as a single use or cross-institution digital identity.

Focus

PRODUCTS & SERVICES

Trust Stamp provide Identity & Trust as a Service by using facial biometrics as a replacement for a user name and password and as a means of signing, encrypting and decrypting data. We analyze a facial photograph using proof of liveness & patent recognition AI as a single factor authentication tool, attaching the photograph and extrapolated biometric markers to a verified identity, storing the photo in an immutable fashion and providing a reliable means to compare it to future and alternate photographs. We verify the identity of the subject by combining the verified photograph to a government issued photo-ID and other online photographs. Optionally we can search social media and other data sources for consistencies and data demonstrating the diversity, duration, depth, longevity and nature of online activities and verify the phone numbers and email addresses known to be associated with the identity.

REVENUE MODEL

Company charges on a per transaction (ID & score viewed) basis or enterprise SaaS contracts.

TOP PROBLEM SOLVED

Industry publications estimate that in US banking alone, synthetic identities are costing over $20B a year in losses with an estimated $8.5B in opportunity cost from declined transactions that should have been approved. Trust Stamp empowers financial institutions and their customers to confidently transact by providing a new paradigm in Trust & Identity as a Service.

PRODUCT DEVELOPMENT STAGE

MARKET TRIAL

PRODUCT DEVELOPMENT COMMENT

We have developed “Apply by Selfie” to eliminate synthetic identities in credit applications. This use case has been built in partnership with an S&P500 U.S. bank and will launch in July 2017. In partnership with a professional body that has applied to function as a Self Regulatory Organisation enforcing a European Union law and UK regulations, we are launching a joint venture product in the United Kingdom which will offer a multi-layer, automated, risk-analysis based KYC / AML process with audit trails, compliance reports and fuzzy logic to identify risky transactions and potential non-compliance. This product will launch in June 2017. With the National Association of Realtors® we have developed a safety application to allow a Realtor® to pre-identify a stranger before meeting them and receive a “Trust Score” which highlights any specific risk factors. The beta was launched in November 2016 at the NAR National Conference. This tool will soon be enhanced by a predictor as to whether a prospect is qualified for the proposed financial transaction.

KEY DIFFERENTIATORS

1) Proprietary proof of life software and facial recognition AI. 2) Encrypted biometric hash 3) Storage in the Ether ensures immutability and accessibility as well as the ability to use smart contracts that respond to different types and sources of identity requests in different ways 4) Tokenized Identity and Trust confirmation that can be used for single sign on or cross-institution authentication. 5) Low cost (less than 1% to 10% of the cost of competitors although they all have comparatively limited functionality) 6) Custome solution design, using independent micro services we can provide unique solutions for industries, companies, and specific functions. 7) Proprietary OCR technology allowing for analysis of government issued IDs. 8) Trustworthiness Score generated using proprietary AI allowing a dynamic and evolving analysis 9) Ethereum Smart Contracts leveraging AI allow the tokenized ID to execute transactions based upon the learned characteristics of their human sponsor 10) Entirely objective data. Where "absolute" is not achievable human subjectivity is replaced with AI based decision making.

PRIMARY CUSTOMER TYPE

Enterprise - Banks or Financial Institutions

Enterprise - Others

Small and Medium Business - Online Retail

Consumer

PRODUCT ATTRIBUTES

SaaS

On-premises

White label

Back Office

Customer facing

Traction

ANNUAL REVENUE:

$100k - $499

REVENUE COMMENT:

The investment by Second Century Ventures and participation by NAR REach places a branded and customized version of our product in front of 1.15m realtors with an estimated 100 million encounters with strangers each year. The soft launch with NAR resulted in partnership proposals from multiple listing services, state and local associations and brokerage chains covering an estimated One Million Realtors (r) A survey conducted by NAR indicates that 54% of members would use on a pay per view or subscription basis and 74% of members would use as a member benefit. Extensive customer discovery indicates use by P2P economy participants: Craigslist 50%, Rideshare 50%, Dating Platforms 40% and Payment Platforms 20% to 30% based on pricing. For Craigslist with 30 million transactions per month that would be 15 million transactions each month. If only 5% of the Craisgslist users that say that they would use Trust Stamp actually do, that would be ARR of $18 million with NOI of $14.2 million.

LIVE USERS/TRANSACTIONS:

No live users/transaction yet

CHANNEL STATUS

INITIAL CLIENTS

NUMBER OF CLIENTS OR PAYING CUSTOMERS

2

People

NUMBER OF EMPLOYEES

11-50

TEAM COMMENT:

We have nine decades of experience in technology,data management yet our average age is under 30. We have founders that started businesses in high school, founders with multiple degrees,a founder that never finished high school but now has a graduate degree. We have team members in 4 countries,team members from 7 countries. We bring a diverse range of technology, big data, UX, legal, taxation,sheer lateral thinking experience to the project. Two founders,one staff member worked together on a previous cloud platform that grew to over 3 million users before sale. 4 founders have been scrappy bootstrapped startup operators yet we also bring experience in managing hundreds of employees in SMEs,hundreds of millions of dollars of tech-assets (at Google). We have two advisory boards, one with eight late-generation-Y professionals that bring the perspectives of a digital era,one with eight senior veteran bankers / FinTech experts that are open to the future but help us bridge our innovation with the legacy industries.

Momentum

FUNDED

YES

FUNDING COMPLETED

NO

LISTED

NO

FUNDING SERIES
Seed
Jan 2017
USD1.6 M
at a USD10 Mvaluation
Comment on Seed
$20,000 self-funded. $200,000 from VC Investor pari passu with founders, $100,000 at a $3m valuation. $120,000 of service credit and in-kind funding from IBM GEP. 100,000 Euros (over US $110,000) of cash funding from the Publicis Group. FSH Capital Second Century Ventures LLC Sixthirty Cyber Fund LLC