Notarize Raises $130M, Triples Valuation with 600% Revenue Growth

The Rise of Remote Online Notarization and Notarize's Funding

A significant shift occurred globally when remote work became widespread a year ago, leading to a surge in demand for remote online notarization services.

Obtaining document notarization without physically visiting a notary’s office transitioned from a convenience to an essential requirement. Pat Kinsel, the founder and CEO of Notarize, a company based in Boston, dedicated efforts to securing the necessary legislative approvals across various states.

Notarize Secures $130 Million in Series D Funding

These efforts have proven successful. Notarize has recently announced a $130 million Series D funding round, spearheaded by Canapi Ventures, a venture capital firm specializing in fintech.

This investment follows a remarkable 600% year-over-year revenue increase. The funding round establishes Notarize’s valuation at $760 million, tripling its valuation from the $35 million Series C round completed in March 2020.

Notably, this latest funding exceeds the total amount raised by the company in all previous rounds combined, bringing Notarize’s total funding to $213 million since its founding in 2015.

Investors Participating in the Round

A diverse group of investors contributed to this funding round. These include Alphabet’s CapitalG, Citi Ventures, Wells Fargo, True Bridge Capital Partners, and existing investors such as Camber Creek, Ludlow Ventures, NAR’s Second Century Ventures, and Fifth Wall Ventures.

Beyond a Notary Company

Notarize positions itself as more than just a notary service. Canapi Ventures partner Neil Underwood characterizes the company as a crucial component – the “last mile” – for various businesses, including iBuyers.

The company has expanded its capabilities to incorporate trust and identity verification processes for these businesses.

Growth and Partnerships

Over the past year, Notarize has experienced a substantial increase in transaction volume and has established new partnerships with prominent companies like Adobe, Dropbox, Stripe, and Zillow Group.

Demand has significantly increased from sectors such as real estate, financial services, retail, and automotive.

“The year 2020 saw a rapid acceleration of digitization across all industries,” stated Kinsel. “Businesses needed to quickly transition to digital operations to maintain continuity, and Notarize was instrumental in facilitating secure and convenient deal closures.”

Future Plans

The newly acquired capital will be utilized to enhance the platform and product offerings, and to expand the company’s capacity to serve businesses of all sizes.

Notarize also intends to significantly increase its hiring efforts over the next year.

Underwood of Canapi Ventures commented, “Notarize is challenging traditional business models and technologies, and possesses substantial potential, particularly within the financial services sector, as more companies seek secure digital alternatives to in-person transactions.”

Notarize’s current success represents a significant turnaround, following a challenging 2019 where the company faced financing setbacks and was forced to reduce its workforce, as noted by Kinsel.