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Perspectives

Verituity: Transforming, Protecting, and Accelerating Digital Payouts

Don Dixon

June 21, 2024

  • Blog Post
Ben Turner and Chris Smith of Verituity

We are thrilled to announce that Forgepoint Capital and Sandbox Industries are co-leading Verituity’s $18.8M additional Series A funding round  alongside Ardent Venture Partners and MTech Capital, and are excited to welcome Sandbox Managing Partner and co-CEO Chris Zock to the board. 

An unsolved market need 

As digital transactions rapidly increase to match the pace of modern life, consumers and businesses expect fast and secure payments from providers with outdated technologies. Each year, banks oversee 240B+ payout transactions valued at $200T+, yet most still rely upon siloed systems, scattered data feeds, and manual processes that cost billions of dollars to operate. Meanwhile, insurers face data gaps in broker, policyholder, and third-party policies and payments. Cybercriminals increasingly take advantage of overburdened systems to commit crimes like payment fraud. Today, up to 30% of payouts fail due to fraud, data errors, or incomplete information. 

Verituity addresses risk management, fraud, and digitization challenges for payers while providing a frictionless and flexible payment experience for payees. By incorporating identity into the payment workflow and leveraging ML-driven behavior models, Verituity contextualizes payer-payee relationships and ensures each transaction is routed correctly and optimally. While most banks and insurers struggle to protect market share from more agile fintechs and insurtechs, Verituity enables its customers to flip the script. 

Doubling down on our partnership with Verituity 

Co-founders Ben Turner and Chris Smith are veteran data and security experts, having built and commercialized products for Fortune 500 customers while at companies like Verisign, Interos, and Iron Mountain. When we first met Ben and Chris in 2020, we were immediately drawn to their unique strategy of incorporating identity at the center of digital payouts while seamlessly connecting to legacy systems. This approach is well-aligned with our focus on investing in continuous trust and identification, complementing innovations from other portfolio companies like 1Kosmos in verification and Lynx in fraud prevention. 

Since we co-led their $10M Series A round in 2021, Verituity has achieved tremendous growth, increasing from $13M in trailing-twelve-month payouts in January 2023 to over $2.6B today. The platform’s 99.88% first-time success rate for end-to-end settlements (including bank processing) has attracted customers such as BNY Mellon, Citizens Bank, and Assurant along with partners like Mastercard. 

This new round of financing will allow Verituity to expand further into verticals including insurance and payment providers. We couldn’t be more excited to build on our partnership and support Verituity through its next phase of growth.