Anonybit raises $3.5 million for its decentralized biometrics infrastructure solution

The pandemic has exponentially increased the number of digital interactions. The unprecedented, rapid and massive shift to remote working has introduced new security vulnerabilities. Companies have been forced to ensure that identity management and private data are protected as they were in a traditional office environment, introducing new challenges to deal with the new reality. 55% of business leaders recently surveyed say their companies have invested in new identity security capabilities since the start of the pandemic. Anonymous is a provider of biometric infrastructure solutions that enable security and identity solution providers and enterprises to decentralize biometric data into anonymized bits that reside in a peer-to-peer network. Available as an SDK, Anonybit is a lightweight solution that is easily integrated and versatile enough to meet the needs of the identity and access management (IAM) market in the enterprise, as well as consumer needs such as the management passwords/accounts for user accounts. With sensitive data now distributed across the network, businesses become less prone to hacker attacks and data becomes more secure as there is no central database to serve as a target.

Alley Watch met the founder and CEO of Anonymit Frances Zelazny to learn more about the benefits of decentralization in personal data and identity solutions, the company’s total addressable market, future strategic plans, recent round of funding, and more.

Who were your investors and how much did you raise?

This was a seed investment round of $3.5 million. The investment was led by the San Francisco-based company Change company, with the participation of NextGen Venture Partners, Industry Ventures, Preceptor Capital, and several strategic angel investors.

Tell us about the product or service offered by Anonybit.

Anonybit has developed the first fully decentralized biometric infrastructure, used to provide strong authentication without maintaining central honeypots of personal data.

In addition to this infrastructure, Anonybit has developed three product offerings, which include:

  • A decentralized identity cloud for biometrics and identity service providers to use with their algorithms and build privacy-preserving identity solutions;
  • Turnkey decentralized biometric authentication for enterprises and integrated partners, leveraging state-of-the-art liveness detection, biometric matching, decentralized storage, and integration into orchestration systems;
  • A digital asset vault for private keys, backup passwords, crypto assets, and more, using the platform’s biometric authentication capabilities to ensure only the authorized user has access to these assets.

Anonybit was designed to meet the growing need for greater data protection and stronger digital security, a direct response to the growing cyber threat landscape.

What inspired the launch of Anonybit?

The founding team of Anonybit has spent their entire career chasing hackers and trying to solve complex identity issues. The problem still boils down to how personal data has been stored in central honeypots that attackers find a way to get their hands on, no matter how “secure” the databases are.

It became clear that the core of the solution is to decentralize data, but in a way that is not just about how the data is stored, but also how it is processed. The goal of the Anonybit solution is to ensure that there is no single point of failure while ensuring that people are who they say they are when accessing their information and assets. .

Anonybit’s mission is to use its decentralized biometric cloud to create a data breach-free world. A world where users can transact online securely and know their privacy is protected because hackers won’t have to find and steal anything, and a world where consumers control who collects their data and how it is collected. are used.

How is Anonybit different?

Anonybit’s breakthrough technology lies in both storing and matching personal data. Our decentralized infrastructure can be used for any use case requiring biometric authentication – online verification, frictionless payments, physical access control, government records, and more.

Anonybit also integrates into existing identity workflows for a more seamless user experience.

Finally, we are not limited to biometrics, so our decentralized infrastructure can be used to protect other personal data and digital assets. When used in this way, biometrics then become the secure key to accessing this information.

At its core, Anonybit authenticates the identity of individuals and prevents hackers from having anything to steal. Because we’re device independent, we’re able to eliminate the trade-offs that are typically made between privacy and security.

What is Anonybit’s target market and how big is it?

Anonybit has a very broad target – financial services, healthcare, business, retail, education, basically any entity that needs to authenticate its users/members/citizens/employees, and cares about data protection. This is a market that is expected to reach $100 billion by 2027.

What is your business model?

Since the industry is changing rapidly, Anonybit has created unique templates for individuals and businesses. Generally speaking, it’s per user, per year.

What are your post-COVID office plans??

With the continued uncertainty surrounding COVID variants, we will likely continue with flexible work policies.

How was the funding process?

The dynamics of seed funding have changed dramatically over the past few years, but ultimately our funding cycle was as much about finding the right initial partner as it was getting the capital injection.

This means different things to different people, but for Anonybit it was all about building the right foundation and the right fundamentals to set the tone for growth and success in the future.

What are the biggest challenges you have faced when raising funds?

The biggest challenge we had when raising capital was to continue to grow the business, while keeping an eye on the price. It wasn’t easy, but I’m proud to say that we managed to get our product into production, onboard a few first recruits, sign our first customer and several key partners, evangelize at different industry events and developing strategic plans.

What factors about your business made your investors sign the check?

Simply put, Anonybit offers a disruptive approach to solving a critical market need for privacy and security that is simply not addressed today.

What milestones do you expect to achieve over the next six months?

Over the next six months, we plan to hire key recruits to complement our sales and development teams, launch new product capabilities, gain traction in our initial target markets, continue to grow our partner network, and consolidate our marketing with them.

What advice can you give to New York businesses that don’t have a fresh injection of capital into the bank?

My biggest tip is to leverage your network. Not everyone is an investor, and many people have other skills that you may be able to tap into when starting your business. People are actually very willing to help if they believe in you and your idea. However, be sure to be deliberate about who you ask for help and who you receive help from. Always ask yourself if your support system amplifies you or adds abilities and skills that you don’t have.

My biggest tip is to leverage your network. Not everyone is an investor, and many people have other skills that you may be able to tap into when starting your business. People are actually very willing to help if they believe in you and your idea. However, be sure to be deliberate about who you ask for help and who you receive help from. Always ask yourself if your support system amplifies you or adds abilities and skills that you don’t have.

Several key people leaned on me and worked with me. They know who they are and I will be eternally grateful to them.

Where do you see the business going now in the short term?

Anonybit has a solid plan for 2022 that involves direct sales, growing channel partnerships, and expanding specific product capabilities that will accelerate implementation and continued growth.

What’s your favorite outdoor restaurant in New York?

My favorite is Avra. Consistently good food, a nice outdoor setup, and a convenient downtown location make this one of my go-to places.


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