Authologic's Series A

In October 2024, Authologic (YC W21), a global digital identity verification platform, that streamlines KYC and AML process with secure eID solutions to combat fraud and meet compliance, announced that it raised $8.2 million in Series A funding. The round was led by leading European venture capital (VC) firm, OpenOcean, with strong participation from YCombinator, the world-class technology startup accelerator and VC firm, Peak Capital, a top pan-European SaaS-focused VC firm, and SMOK VC, a US fund investing in top CEE entrepreneurs.

Founded by established entrepreneurs, Krzysztof Klimczak, Jaroslaw Sygitowicz, and Marek Rogozinski, Authologic addresses the critical flaw in legacy KYC systems that rely on document images. With AI making it easy to create fake documents, these methods are increasingly prone to fraud, identity theft and compliance failures. 

In addition, the long-standing fragmentation of identity verification systems across borders and platforms adds complexity to this challenge, especially in industries with strict KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, like financial services, gaming, telecoms, and crypto.  

The new eIDAS 2.0 regulations are adding to the complexity with their recent requirements mandating all regulated companies to accept eIDs. Providing support for non-document-based ID verification will pose significant challenges for those organisations and their KYC/AML departments. Not to mention the fact that eIDs must be accepted as a valid authentication method, and as a 2FA method for many processes, including transaction confirmation. 

"Identity is the foundation of a well-functioning society. If we can’t be sure who we’re dealing with online, it undermines trust in marketplaces, social interactions, and even democracy itself. That’s why digital identities must be easy to use and the practice of taking photographs of plastic ID cards should be left in the past,” says Krzysztof Klimczak, CEO and co-founder of Authologic. “We are excited to have the support of our investors as we expand our reach and continue to innovate in the digital identity space."

Tony Nysten, Partner at OpenOcean, commented, "For decades, people in the Nordics have used bank e-IDs to sign contracts, purchase items, and even book dentist appointments online. With the Nordics having paved the way in digital identities, we believe Authologic is on the cusp of driving a revolution on a global scale. The demand for secure, efficient and easy-to-use identity verification is universal, and Authologic's approach is precisely what the market needs.

Its vision of building a new, trust-based identity layer on the internet resonates deeply with us, and we are thrilled to support the team as they lead the charge in making this vision a reality. Authologic is reshaping online identity."

Nicolas Dessaigne, Group Partner at YCombinator, remarked, "At Y Combinator, we have a front-row seat to seeing AI fundamentally transform the way businesses operate, and it's become clear that traditional identity verification methods, reliant on outdated practices like photos of physical documents, are no longer sufficient. 

Since going through YC in 2021, Authologic has consistently demonstrated its ability to stay ahead of these trends. We are proud to back a team that not only meets the challenges of today but also anticipates the needs of tomorrow, driving the future of secure, automated identity verification."