Truework, the verified identity platform that gives consumers control over their personal and professional information, has recently announced it has raised $12 million in Series A financing led by Sequoia Capital with participation from Stanford University and existing investors, including Khosla Ventures, Menlo Ventures, and Founder Collective. The company is also announcing that its network has grown to more than one million users in just one year.
During major transactions, from buying a home to applying for a job, banks and other institutions must verify private, sensitive data about consumers. While many of these activities have shifted to take place online, the process of verifying identity remains stuck in the past, plagued by a lack of consumer transparency and accuracy. Beginning with employment and income data, Truework secures sensitive identity information, providing details only with consumers’ explicit consent, while automating manual workflows for HR departments, banks and other institutions.
“We are working to fundamentally change the data economy, in which credit bureaus continue to squeeze profits by abusing the privacy of consumers,” said Ryan Sandler, co-founder and CEO of Truework. “When third parties receive access to private data, it is often a complete black box for individuals. Truework is bringing these processes front and center, putting more control into the hands of the consumer.”
“Identity is vital to the health of the sharing economy and other online services, but it is completely broken today. Truework is building the internet’s new identity layer that will bring security and speed to many different transactions. The success they have had in just over a year shows the incredible demand for innovation and privacy in this very outdated space,” added Alfred Lin, partner at Sequoia Capital. Lin is joining Truework’s board and also sits on the board of Airbnb, Doordash and others.
Launched in April 2018, Truework’s platform for employers integrates with HR and payroll systems to automatically process employment and income requests. Employees are able to approve or deny each request in real time, allowing banks and other institutions to access information without slowing down the application process. Today, Truework’s network is comprised of hundreds of employers, including The College Board, Oscar Health, InVision, and Tuft & Needle. The company serves over 3,000 financial institutions and has verified income data on more than $2 billion of home loans.
The new funding will be used to scale the product and engineering teams and expand the scope of its identity platform for consumer and enterprise users.
“It’s hard to believe that in 2019 consumers cannot instantly go through every step of the mortgage qualification process online. Truework is solving the final missing piece by letting lenders quickly verify employment, income and other identity data,” said Keith Rabois, partner at Founders Fund who led Truework’s seed round while at Khosla Ventures. Rabois sits on the board of Opendoor, Affirm, and others.
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