Canada-based identity and authentication technology developer SecureKey Technologies closed a C$27m ($20.5m) funding round on Tuesday featuring strategic investments from a host of financial services firms.
BMO Bank of Montreal, Bank of Nova Scotia, CIBC, Desjardins, Royal Bank of Canada and TD all took part in the round, which will support the development and commercial rollout of a new digital identity network by SecureKey in 2017.
SecureKey already operates an online authentication service called SecureKey Concierge, and the new product is set to help users manage their digital assets and digital identity more securely. In addition to investing in SecureKey, the banks will be partners for the network.
Eddy Ortiz, vice-president of solution acceleration and innovation for RBC, said: “Banks like RBC are uniquely positioned to collaborate with SecureKey to realise a digital ID because of our deep knowledge of clients, best-in-class security standards, and our strict regulatory requirements.
“SecureKey’s digital identity service will provide our clients with the peace of mind that they have come to expect, and will be a foundational building block in building consumer trust for the evolving digital economy.”
Rizwan Khalfan, TD’s chief digital officer, added: “SecureKey is creating an ecosystem for customers to manage their digital assets securely and conveniently. It is a model that is being developed with substantial input from TD and other banks.
“Investing in innovation that will improve the customer experience is core to our strategy. Given the priority we place on security and privacy, we’re uniquely positioned to help shape this offering.”
The round follows more than $51m in debt and equity financing raised by SecureKey, which already has several corporate investors. It raised $2.5m in financing before Intel Capital, the corporate venture capital subsidiary of chipmaker Intel, invested an undisclosed amount in 2011.
Intel Capital led a $30m series B round the following year that included telecommunications companies Rogers Communications and Telus, and payment services firms Visa, MasterCard and Discover Financial Services.
Rogers returned for a $19m round in February 2015 it co-led with investment firm Blue Sky Capital through its Rogers Venture Partners unit.