Nect nets revenue-based financing of €2.5M to expand digital ID market reach

Hamburg-based digital identity firm Nect has secured €2.5 million (US$2.7M) in revenue-based financing from Round2 Capital, according to a release. The funding will go toward helping Nect expand the global market for its suite of ID verification products, Nect Wallet, Nect Ident and Nect Sign, which use AI and biometrics to offer eIDAS-compliant identity verification and electronic signature services.

Benny Bennet Jürgens, CEO of Nect, says the company has “built our foundation of 12 million users on one key principle: we design the best solutions for the user and build and invent the security technology to match. With the support of Round2 Capital, we look forward to expanding into new markets, driving innovation and leading the industry into a new era.”

Nect was founded in 2017 and was named one of Germany’s fastest-growing companies by Deloitte in both 2023 and 2024. It says its innovative technology, strong customer base and already operationally profitable business make it well-positioned to capitalize on growth in the digital ID verification market, as it focuses on the near future of identity wallets in Europe and beyond.

The revenue-based financing investment from Vienna-based Round2 Capital has a flexible repayment structure to suit Nect’s business model. Per the release, the non-dilutive funding allows shareholders to maintain full control of the company in order to scale operations, innovate products and expand into new markets without having to dilute equity.

Round2 Capital categorizes itself as a “strong partner for European scale-ups and companies with sustainable digital business models. Its recent portfolio includes Swedish video tech firm Phyron and Swedish intelligent automation provider EvoluteIQ.

Article Topics

digital ID  |  digital wallets  |  electronic-signature  |  funding  |  Germany  |  identity verification  |  Nect