Socure Secures $156M at $5.2B Valuation, Acquires AI Fraud Investigation Startup Fravity
figure — identity verification and fraud prevention company Socure announced Thursday that it raised $156 million in a strategic growth investment valuing it at $5.2 billion. The Incline Village, Nevada-based company is also acquiring Austin-based agentic AI startup Fravity as it looks to automate more of the labor-intensive work involved in investigating financial crime.
Summit Partners led the investment, which includes both primary capital and a secondary tender offer for employees. Goldman Sachs Alternatives, Wells Fargo, Docusign and others also participated. Socure did not disclose the terms of its acquisition of Fravity. With the latest funding, Socure has raised over $742 million in disclosed funding since its 2012 inception. It was previously valued at $4.5 billion at the time of its Series E round in 2021. The company did not break down how much of its raise was primary and secondary capital. Rapid growth as fraud surges The transactions come as Socure says it is seeing both rapid growth in its own business and a sharp rise in increasingly sophisticated fraud. The company is refreshingly open about its financials, telling Crunchbase News that it ended the second quarter with $364 million in annual recurring revenue, up 63% from a year earlier, and added 95 customers during the quarter, including Circle, Cox Automotive, MoneyLion and Login.gov. It also claims to be growing “profitably.” Socure uses AI and machine learning to help banks, fintechs and government agencies verify identities so they can “approve real customers instantly while stopping fraud.” It now has more than 3,000 enterprise customers. They include 19 of the 20 largest U.S. banks, more than 600 fintech companies, major sportsbook and prediction-market operators, and 160 public-sector organizations. Specifically, some of those customers include Capital One, Citi, Chime, Robinhood, DraftKings and Revolut. The company’s revenue model mixes usage- and transaction-based SaaS. AI creates both an opportunity and a problem Johnny Ayers, co-founder and CEO of Socure. (Courtesy photo) Socure co-founder and CEO Johnny Ayers said AI is creating both an opportunity and a problem for the business.
