Security startup NuID today announced a $2.5 million round to help grow its user authentication technology.
Founded in early 2017, the Seattle-based company develops software that uses blockchain tech to authenticate individuals and eliminate the need for stored passwords in a centralized database. It calls the technique “trustless authentication,” meaning that users do not need to trust anyone with their authentication credentials.
The larger idea is to help companies reduce the risk of data breaches and fight fraud.
“Businesses are learning that the best way to protect their users’ data is to store as little of it as possible,” Locke Brown, CEO and co-founder, said in a statement. “We view passwords as secrets that shouldn’t be shared with anyone — including NuID.”
The company signed its first client last month and is looking to partner with a major financial services company.
Jemison Investment led the round, which included participation from 8VC. Jemison Investment Director Spencer Lacy has joined NuID’s board of directors.
Brown founded the company with Nolan Smith. NuID is headquartered in Seattle but its seven employees are spread across five U.S. cities.