Regtech ID verifier Fourthline nets €50 million in funding
An Amsterdam fintech compliance startup has closed a €50 million (approximately US$55 million) round of funding from institutional investors.
Fourthline boasts an API that connects a client’s regtech software to its biometric applications, including ID verification, along with qualified electronic signatures, AML screening and anti-fraud checks. The API covers a number of other applications as well, including risk scoring, device verification and NFC.
Launched in 2018, Fourthline can create reusable core identity for people and devices that executives claim eliminates asking the same authenticating questions twice.
They say that their platform is “banking-grade” and provides “lifetime” financial compliance.
A year ago, a Juniper Research forecast that the regtech market will be $204 billion by 2026 and comprise half of all compliance spending. Fourthline claims its revenues spiked by 170 percent in 2021, as new customers digitized various processes and existing biometrics partnerships scaled up.
Finch Capital increased its ownership in the company through the latest round. Finch had led the previous round.
Radboud Vlaar, managing partner of the investor, said in a statement that he is a fan of Fourthline’s proprietary platform approach to compliance.
No other investors in this round were named.