Strivacity, a startup that specializes in helping companies build secure login flows, has raised $20 million in a Series A-2 funding round led by SignalFire. The round also saw participation from Ten Eleven Ventures, Mandiant founder Kevin Mandia, and Tenable co-founder Jack Huffard. Strivacity’s total funding now stands at $28 million, which will be used for product R&D, various go-to-market initiatives, and customer support.
Strivacity was co-founded by Keith Graham and Stephen Cox to solve some of the challenges around authentication. Identity and access security issues are increasingly top of mind for companies. According to a recent Verizon survey, 61% of all breaches now involve credentials. A NordPass poll found that eight out of ten people find password management difficult.
Strivacity’s platform allows users to create secure business-to-business and business-to-consumer sign-in experiences using a low-code solution that’s completely focused on creating simple and secure customer sign-in journeys, built on a modern cloud-native architecture. Strivacity handles aspects like consent management, identity verification, and branding, and can ramp up to match spikes in customer login activity for up to hundreds of millions of monthly active users.
Strivacity’s Competitive Edge in a Crowded Market
Strivacity faces stiff competition in the crowded identity management market. Its main competitors include ForgeRock and Ping Identity, both of which were recently acquired by private equity firm Thoma Bravo. Okta via the products it acquired in its acquisition of Auth0 last year, ConductorOne, Saviynt, and Axiom are other rivals that have collectively raised hundreds of millions of dollars in capital.
To stay ahead of the competition, Strivacity is adding new features, including document-based verification and support for companies with multiple subsidiaries and divisions. Growing its customer base is also a prime focus, with current clients including Southern New Hampshire University and the casino chain Mohegan.
Strivacity’s AI and Machine Learning Models
To prevent bots from logging in and stealing data, Strivacity makes use of AI and machine learning models. The models look at customer behavior and usage patterns to attempt to identify “bad” or “unusual” activity based on each user’s history. When something anomalous happens, additional security steps are triggered to protect a user’s account from being hijacked.
Strivacity’s privacy-centric features include a tool that allows logged-in customers to easily delete their data themselves. It also lets companies deploy fully isolated customer instances in the country of their choice, helping them meet data residency and sovereignty requirements.
“The battle over the customer login box is invariably an arm wrestling match between security and marketing — or whoever owns the customer experience,” said Keith Graham, Strivacity’s CEO. “We reduce the risk of accounts getting hijacked and the associated fraud and reputational damage by making it easy for security teams to deploy modern security features without adding friction to the customer sign-in experience.”
Identity Solutions Investments on the Rise
The high rate of adoption for identity solutions has led to VC firms pouring $3.2 billion into the identity management space in 2021, about 2.5 times the amount of investment from the 2020s $1.3 billion. In a March 2021 survey by Ping Identity, 64% of US-based companies said they invested in new identity security capabilities while 79% of executives expected those investments to increase within the next 12 months.
Strivacity plans to nearly double its workforce from 40 employees to around 70 in the next 12 months. “The pandemic forced every company to rethink its online customer experience. That’s creating