Boston-based Transmit Security has raised $543 million in venture funding, giving the cybersecurity company a valuation of $2.2 billion. Transmit uses biometric authentication, as opposed to passwords, for its identity and risk management systems.
The company said in a press release that its products yield a better “user experience, enhance security and satisfy compliance requirements at a fraction of the time and cost of traditional identity solutions.” Transmit said it would use the cash, in part, to expand globally.
“By eliminating passwords, businesses can immediately reduce churn and cart abandonment and provide superior security for personal data,” said Mickey Boodaei, Transmit’s CEO and co-founder.
The new funding “is a clear indication that the world is ready to eliminate passwords and embrace biometric authentication technology,” said Rakesh Loonkar, Transmit’s president and co-founder. “Every time I see a login button on a website, I get anxious. Whenever an app texts me a code that I have to enter, I become frustrated with the process.”
The funding round was led by Insight Partners and General Atlantic, with additional investment from Cyberstarts, Geodesic, SYN Ventures, Vintage and Artisanal Ventures.
“Transmit has successfully delivered elegant and effective solutions … to some of the largest companies in the world,” said Paul Stamas, managing director at General Atlantic. He added that Transmit’s leaders have “a clear vision” and a “focus on product innovation.”
According to the release, the company’s customers include six of the seven largest financial institutions (FIs) in the U.S and two of the country’s largest merchants. Other customers include FIs, merchants and online service providers in Europe, Asia and Latin America.
All told, U.S. consumers lost $56 billion to identity fraud in 2020, and such scams affected 49 million individuals. In addition, 18 percent of all identity fraud schemes for nonfinancial services during the past year occurred on delivery services such as DoorDash and Grubhub.