International law firm Bird & Bird advised Icelandic start-up Authenteq, on its $1.3 million seed round co-led by London-based Initial Capital and Silicon Valley-based Draper Associates. Berlin-based Cavalry Ventures also invested in this round. The company provides an automatic identity verification and privacy platform which enables users to verify and create their own blockchain-based digital IDs.
Authenteq is tackling the ever-growing problem of online identity by promoting the use of a trusted identity online through a networked automatic identity verification platform. With an Authenteq ID, users can choose to verify their identity (or parts of their identity) to third parties using its claim verification API. This, in turn, increases trust and transparency in communications and transactions between people when interacting online. An additional benefit is that it can be used with almost every type of marketplace, website or online community
Another feature of an Authenteq ID is that it is a sovereign digital identity meaning that the user owns and controls the information that is collected and verified. Not even the company has access to the user's information which is encrypted on the user's phone and on the blockchain.
Authenteq was selected by CTIA Innovation Council Investor Advisors as one of the five most forward-thinking, innovative companies worldwide in the category of identity management.
The start-up has previously been funded by the founders as well as by grants from the Icelandic Technology Development Fund and the Innovation Centre Iceland. This funding round brings the total amount raised by the company to around $2 million.
Authenteq is currently working on pilot projects with certain companies that it plans to launch with in early 2018.
Kari Thor Runarsson, CEO and Co-Founder of Authenteq said: "It has been a pleasure working with a law firm who shares our passion for our product. The Bird & Bird team took the time to fully understand our objectives and vision. The team was very responsive and provided great support coordinating multiple stakeholders, proving to be integral in getting the deal across the line."
The Bird & Bird team was led by Corporate Partner Shing Lo who was assisted by Associates Ella Hutson and Will Porter.