EyeVerify sells to Alibaba affiliate for more than $100M
September 13, 2016 | Bobby Burch
In what represents one of the metro’s most notable exits in the last decade, Kansas City-based startup EyeVerify announced Tuesday that it has been acquired.
Ant Financial — the payments affiliate of Alibaba Group Holding — purchased EyeVerify for more than $100 million, according to an unnamed local source familiar with the deal.
Ant Financial started using EyeVerify’s biometric security tool in early 2016. Valued at about $60 billion, Ant Financial boasts about 450 million customers, offering services such as online payments, peer-to-peer lending, wealth management and more, Bloomberg reports.
Led by CEO Toby Rush, EyeVerify created the “EyePrint ID,” which transforms a selfie of a user’s eye into a biometric security key. It’s used by millions of people around the world to access mobile banking or other secured information.
Founded in 2012, EyeVerify has 35 staffers, has raised $13 million to date and was named a Top 10 Startup to Watch in 2016 by Startland News.
Now a wholly-owned subsidiary of Ant Financial Services Group, EyeVerify plans to stay in Kansas City after the deal, according to the firm. Current employees and the executive management team will also remain with the firm.
The exit is an unequivocal win for Kansas City. Not only will founding team members likely see a nice payout, but so too will EyeVerify’s local investors. Local investors in EyeVerify include Mid-America Angels, Women’s Capital Connection, Think Big Partners, Flyover Capital, Sprint and other private investors.
“Mid-America Angels and the Women’s Capital Connection are proud to have identified EyeVerify as a promising business opportunity and participated in this deal from its earliest stages,” a spokeswoman with MAA said. “We congratulate Toby and his team on years of hard work, and look forward to celebrating this timely victory for Kansas City during Techweek.”
Check back in later for more on this breaking story.
2016 Startups to Watch
stats here
Related Posts on Startland News
Schukman: Authenticity is the ultimate currency for millennials
The facts are in. Millennials prefer cause based products, are willing to pay more for them, and demonstrate strong brand loyalty to companies who weave social good into their stories. On the surface, these stats should be enough for any company to dive head first into branding themselves as social entrepreneurs. But, cause-based marketing is…
Brad Feld contest offering a startup free rent in KC
A prominent venture capitalist is launching an international competition in Kansas City that will offer a startup free office space in one of the area’s tech hotbeds. Brad Feld, co-founder of the Boulder-based Foundry Group, kicked off a contest Tuesday that will allow a startup to live in his Kansas City, Kan., home for one-year…
Digital Sandbox partners with Olathe to lift startups
Business incubator Digital Sandbox KC is widening its reach to suburban Kansas City. Digital Sandbox is partnering with the City of Olathe, Kan., to help launch businesses and boost entrepreneurship with its proof-of-concept model. The organization invests up to $25,000 in businesses for specific projects that help them secure additional funding. “Digital Sandbox has done…
FCC commissioner Ajit Pai visits with local entrepreneurs
In a reunion trip to Kansas City, a federal communications official visited with entrepreneurs and business leaders to discuss the effects of high-speed Internet access in the area. Ajit Pai, a commissioner with the Federal Communications Commission, stopped by the Kansas City Startup Village Thursday on a tour to gain more information on broadband expansion…