Passbase, an identity verification infrastructure company, has raised $13.5 million in a funding round led by Costanoa Ventures. The startup will use the funds to scale its operations and build a policy and workflow manager that sits on top of its ID verification system.
The capital came from a new $10 million Series A round and a previously unannounced $3.5 million seed round. Other participating investors included Lakestar, Eniac Ventures and Cowboy Ventures.
Passbase helps companies automate the identity verification process to meet regulations for anti-money laundering (AML), know your customer (KYC) and age restriction requirements around the world. The developer-focused product covers over 6,000 IDs across 190 countries and 15 languages.
The new policy and workflow manager offers industry-specific policy templates and privacy-centric infrastructure to help companies keep up with fast-moving and complex regulatory environments around the world.
Silicon Valley-based Passbase was launched in 2018 after the foundersâ€™ previous app, the crypto wallet Coinance, ran into regulatory hurdles.
â€œWe built Passbase to solve our own problem back in 2018 to allow users to manage their digital identities across different cryptocurrency platforms in a compliant way,â€ said Passbase CEO and co-founder Dave McGibbon in the press release. â€œThis round of funding brings us one step closer to being the trusted identity solution for web3 companies like Coinance.â€
Identity verification regulations have proven challenging for cryptocurrency companies. Over the summer, a group of crypto giants that included Coinbase and Gemini drafted a solution for Financial Action Task Force (FATF) provision called the â€œTravel Rule,â€ which requires the sharing of a customerâ€™s personally identifiable information when regulated firms move crypto around.