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
Just funded: Digital Sandbox KC ‘fuels innovation’ for five emerging tech startups
Scaling past the proof-of-concept stage is key for young startups, so making them fundable by the time their product is built can mean the difference between success and stagnation, said Jill Meyer, announcing the latest round of companies backed by Digital Sandbox KC. The five startups receiving up to $20,000 each include ventures focused on…
Coworking blueprint for contractors trades home for critical back-office business support
Trades CoWork provides a professional office environment, storage space, and back-office support to contractors and trades workers who have long been “dismissed,” said William Hayes, an entrepreneur who “sold everything” to fuel the venture. “There is nothing out there for the small contractors that gives them an affordable option to move out of their house,…
Why these Big Jay collectibles are a nod to bobblehead hall of fame’s love of KC-area sports
A cross-country childhood trip to the Negro Leagues Baseball Museum inspired a young baseball fan and rookie sports collector to keep Kansas City on his map — later incorporating an array of local major league and collegiate teams into his entrepreneurial venture: a national hall of fame for bobbleheads. The most recent additions to his…
Federal ban on noncompetes would ‘unleash’ entrepreneurs, open door to more startups, advocate says
A proposed rule change that would stop employers from imposing and enforcing contract clauses to limit their workers’ ability to change jobs within their fields is being hailed as a “vital step on the path to expanding economic growth in the United States,” according to one Kansas City-based advocate for entrepreneurs. Earlier this month, the…