VU Raises $12M to Simplify Cybersecurity | VU

A Future Without Traditional Identification

The need for physical identification, such as fingerprints or driver’s licenses, may soon diminish thanks to the advancements being made by VU.

Recent Funding and Investment

This Argentina-based company specializing in fraud and identity protection recently announced a $12 million Series B funding round. Key investors include Globant, a software developer, alongside Agrega Partners, NXTP Ventures, Bridge One, IDB Lab, and Telefónica.

With this latest investment, VU’s total venture funding now reaches $20 million, as confirmed by CEO Sebastián Stranieri in a statement to TechCrunch.

The Genesis of VU

Sebastián Stranieri, a cybersecurity veteran with two decades of experience, conceived the idea for VU in 2007. His inspiration stemmed from a frustrating experience assisting his grandmother with a simple identity verification process for the Argentinian government.

“This experience motivated me to establish a company focused on streamlining digital interactions and eliminating unnecessary obstacles,” Stranieri explained to TechCrunch.

How VU’s Technology Works

VU’s core technology analyzes a user’s “online persona” by leveraging geolocation data, biometric information, and behavioral analytics. This allows for robust identity verification and continuous authentication.

Essentially, the system seamlessly connects a user’s online and offline identities. VU primarily collaborates with governmental organizations in nations like Argentina and Ecuador, offering a reliable method for confirming individual identities.

The Growing Digital Identity Market

VU is among a growing number of startups innovating in the fraud and digital identity space. The global digital identity market is projected to exceed $33 billion by 2025, according to research from Adroit Market Research.

Other companies attracting significant investment in this sector include Sift, which secured $50 million in April, and Socure, which raised $100 million in Series D funding, achieving a valuation of $1.3 billion.

Expansion and Growth

Over the past three years, VU has expanded its team to over 150 employees and established operations throughout Latin America and Europe.

The company serves prominent clients such as Santander and Prisma, as well as various governmental bodies in Latin America. VU has also recently opened its first office in New York, with plans to significantly increase its workforce there within the next year.

Financial Performance and Future Plans

VU is currently experiencing an average of 85% year-over-year revenue growth. The company anticipates maintaining this momentum, forecasting 100% growth for 2022.

In addition to New York, VU has established a presence in Madrid and intends to open offices in Italy, France, and the United Kingdom.

The newly acquired funding will be allocated towards recruiting developers across both Europe and the United States.

Strategic Partnership with Globant

Globant’s investment in VU signifies more than just financial support; it represents a strategic partnership.

Globant, a software development provider for major companies like Google, Disney, and Apple, will collaborate with VU to package its digital experience. This will allow businesses to purchase the core software and then customize it to their specific needs.

Currently, VU’s technology is particularly well-suited for banking applications and enabling one-click e-commerce checkouts, where retailers can instantly recognize and verify buyers.

“Globant’s commitment to enhancing digital experiences makes their backing a strong endorsement of our progress to customers and partners,” Stranieri stated. “The support from our investors empowers us to take calculated risks and accelerate our growth trajectory.”