The pandemic has exponentially increased the number of digital interactions. The unprecedented, rapid, and massive shift to remote work introduced new security vulnerabilities. Companies were forced to ensure that identity management and private data was protected just as it was in a traditional office setting, introducing new challenges to address the new reality. 55% of business leaders recently surveyed indicate that their companies made investments in new identity security capabilities since the start of the pandemic. Anonybit is a provider of biometrics infrastructure solutions that allow security and identity solutions providers and enterprises to decentralize biometric data into anonymized bits that reside in a peer-to-peer network. Available as an SDK, Anonybit is a lightweight, easily integratable solution that is versatile enough to serve the Identity and Access Management (IAM) market in the enterprise and also consumer-facing needs such as password/account management for user accounts. With sensitive data now spread across the network, companies become less prone to attacks from hackers and data becomes more secure as there isn’t a central database to serve as a target.
AlleyWatch caught up with Anonybit Founder and CEO Frances Zelazny to learn more about the benefits of decentralization when it comes to personal data and identity solutions, the company’s total addressable market, future strategic plans, recent round of funding, and much, much more.
Who were your investors and how much did you raise?
This was a $3.5M seed investment round. The investment was led by San Francisco-based Switch Ventures, with participation from NextGen Venture Partners, Industry Ventures, Preceptor Capital, and several strategic angel investors.
Tell us about the product or service that Anonybit offers.
Anonybit has developed the first fully decentralized biometrics infrastructure, used to ensure strong authentication without maintaining central honeypots of personal data.
On top of this infrastructure, Anonybit has developed three product offerings, which include:
- A decentralized identity cloud for biometric solution and identity service providers to use with their algorithms and build privacy-preserving identity solutions;
- Turnkey decentralized biometric authentication for enterprises and embedded partners, leveraging state of the art liveness detection, biometric matching, decentralized storage, and integration into orchestration systems;
- A digital asset vault for private keys, backup passphrases, crypto assets, and more, utilizing the platform’s biometric authentication capabilities to ensure that only the authorized user has access to these assets.
Anonybit was built for the growing need for greater data protection and enhanced digital security, a direct response to the growing cyber threat landscape.
What inspired the start of Anonybit?
The Anonybit founding team has spent their entire careers chasing hackers and trying to solve complex identity challenges. The problem always comes down to how personal data has been stored in central honeypots that attackers figure out how to get their hands in, no matter how “secured” the databases are.
It became evident that the core of the solution is to decentralize the data, but in a way that is not just about how the data is stored, but also how it is processed. The purpose of the Anonybit solution is to ensure there is no single point of failure while still ensuring that people are who they claim to be when accessing their information and assets.
Anonybit’s mission is to use its decentralized biometrics cloud to create a world with no data breaches. A world where users can conduct transactions online safely, and know their privacy is protected because hackers will have nothing to find and steal, and a world in which consumers are in control over who collects their data and how it is used.
How is Anonybit different?
Anonybit’s breakthrough technology lies in both the storage and the matching of personal data. Our decentralized infrastructure can be used across any use case that requires biometric authentication – online verification, frictionless payments, physical access control, government registries, and more.
Anonybit also integrates into existing identity workflows for a more seamless user experience.
Finally, we are not limited to biometrics, so our decentralized infrastructure can be used to protect other personal data and digital assets. When used in this way, the biometric then becomes the secure key to access that information.
At its core, Anonybit authenticates individuals’ identities and prevents hackers from having anything to steal. Because we are not device-dependent, we are able to eliminate the tradeoffs that are typically made between privacy and security.
What market does Anonybit target and how big is it?
Anonybit has a very wide target – financial services, healthcare, enterprise, retail, education, essentially any entity needs to authenticate its users/members/citizens/employees, and is concerned about data protection. This is a market that is predicted to grow to $100B by 2027.
What’s your business model?
Since the industry is rapidly evolving, Anonybit has created unique models for both individuals and businesses. Generally speaking, it’s on a per-user, per year basis.
What are your post-COVID office plans??
With the continued uncertainty surrounding COVID variants, we will likely continue with flexible work policies.
What was the funding process like?
The dynamics of seed funding have changed drastically over the last few years, but ultimately our funding round was just as much about finding the right early partner as it was about getting the capital infusion.
This means different things for different people, but for Anonybit, it was about building the right foundation and the right fundamentals to set the tone for growth and success in the future.
What are the biggest challenges that you faced while raising capital?
The biggest challenge we had while raising capital was continuing to grow the business, while keeping the eye on the prize. It wasn’t easy but I am proud to say that we had success getting our product into production, onboarding some initial hires, signing our first customer and several key partners, evangelizing at different industry events, and putting strategic plans together.
What factors about your business led your investors to write the check?
In the simplest terms, Anonybit offers a disruptive approach to solving a critical market need around privacy and security that simply is not being addressed today.
What are the milestones you plan to achieve in the next six months?
In the next six months, we plan to onboard key hires to supplement our sales and development teams, release new product capabilities, gain more traction in our initial target markets, continue to grow our partner channel, and solidify our go-to-market with them.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
My biggest piece of advice is to leverage your network. Not everyone is an investor and many people have other skills that you might be able to leverage as you get your business off the ground. People are actually very willing to help if they believe in you and your idea. However, make sure to be deliberate in who you ask for help from and who you receive help from. Always ask yourself if your support system is amplifying you or adding capabilities and skills that you don’t have.
My biggest piece of advice is to leverage your network. Not everyone is an investor and many people have other skills that you might be able to leverage as you get your business off the ground. People are actually very willing to help if they believe in you and your idea. However, make sure to be deliberate in who you ask for help from and who you receive help from. Always ask yourself if your support system is amplifying you or adding capabilities and skills that you don’t have.
There are several key people who leaned in and worked with me. They know who they are and I’m eternally grateful.
Where do you see the company going now over the near term?
Anonybit has a robust plan for 2022 that involves direct sales, growing channel partnerships, and expanding specific product capabilities that will accelerate implementation and continued growth.
What’s your favorite outdoor dining restaurant in NYC?
My personal favorite is Avra. Consistently good food, nice outside setup, and convenient Midtown location make it one of my go-to’s.
