Seattle-based startup Vouched, specializing in identity verification for companies, has successfully secured $6.3 million in funding. The funding round was spearheaded by BHG VC and SpringRock Ventures, along with continued support from previous investors Darrell Cavens and Mark Vadon, co-founders of the e-commerce giant Zulily.
Emerging from Madrona Venture Labs, an accelerator affiliated with Madrona Venture Group in Seattle, Vouched has grown to a team of 30 employees and now serves a client base exceeding 300, including banks, fintech firms, and healthcare providers.
Vouched’s innovative software employs image analysis to scrutinize photo identity documents such as passports and driver’s licenses. It also cross-references a user’s selfie to confirm their identity and examines textual details like addresses, all in real-time, offering robust fraud detection capabilities.
Notable clients in Vouched’s portfolio include Hims Health and Alloy, a company assisting financial institutions in making decisions related to fraud, credit, and compliance.
CEO John Baird expressed his enthusiasm for expanding their identity verification platform into the healthcare sector, emphasizing their commitment to being a trusted partner for businesses operating in highly regulated industries.
Founded in 2018 by John Baird and John Cao (who departed from the company in 2021), Vouched faces competition from other startups deploying ID verification technology, including SheerID in Eugene, Oregon, Trulioo in Vancouver, British Columbia, AuthenticID in Seattle (which raised $100 million in 2021), and OCR Labs.
What sets Vouched apart from its competitors is its proprietary AI models, boasting an impressive track record of identifying over 99% of known fraud cases. With this latest funding round, the startup has raised a total of more than $18 million.
Darrell Cavens, former CEO of Zulily, and Mark Vadon, founder of Blue Nile and chairman of online pet products retailer Chewy, have invested together in other Seattle startups as well, including Rad Power Bikes.