ID Analytics is the leader in on-demand identity intelligence. The company’s original focus was identity fraud and identity risk management solutions, but it has now evolved to cover visibility into individual identities.
Bruce Hansen, who is now chairman and CEO, founded the company in 2002 along with Mike Cook, who serves as the chief operating officer. The company is based in San Diego, California. ID Analytics has raised a $10 million Series A led by Canaan Partners and Trinity Ventures in June 2002, a $5.15 million Series B led by Mission Ventures, Canaan and Trinity, and a $20 million Series C led by Investor Growth Capital along with Canaan, Mission and Trinity in May 2007.
A report by Javelin Strategy and Research says that US fraud losses reached $45 billion in 2007. From November 2008, the US Federal Trade Commission (FTC) will require firms providing credit to comply with certain “red flag rules”. By using identity intelligence and fraud protection networks like ID Analytics’ ID Network, companies could benefit tremendously by curbing the impact of such regulations on their business.
The company recently announced a new product, ID Analytics for Authentication, which is a network-based solution that allows companies to authenticate customers’ information several times in various ways during online and call center transactions.
A ComputerWorld article discusses a study done by ID Analytics on security breaches that shows consumers whose identities are exposed in a large-scale data breach are less likely to be at risk than those exposed in a smaller breach. This could be because identity thieves do not always have the resources to misuse all the data they steal.
I don’t see much customer data or revenue data on the company, and my request for information was met with little of use. After spending over $35 million in investor dollars, and 6 years of investor time, however, the company must be facing exit pressures. The exit market is terrible, and may not improve anytime soon.
This segment is a part in the series : Deal Radar 2008