Socure, an identity verification and fraud prevention startup, raised $156 million in a strategic growth investment led by Summit Partners, valuing the company at $5.2 billion. The company also announced the acquisition of Fravity, an Austin-based agentic AI platform that automates fraud, risk, and compliance investigations.

The funding round included both primary capital and a secondary tender offer for employees, with participation from Goldman Sachs Alternatives, Wells Fargo, Docusign, and others. Socure has now raised over $742 million in disclosed funding since its 2012 founding, up from a $4.5 billion valuation at its Series E round in 2021.

The company reported $364 million in annual recurring revenue as of Q2 2026, up 63% year-over-year, and added 95 customers during the quarter, including Circle, Cox Automotive, MoneyLion, and Login.gov. Socure now serves more than 3,000 enterprise customers, including 19 of the 20 largest U.S. banks, over 600 fintech companies, major sportsbook operators, and 160 public-sector organizations. Customers include Capital One, Citi, Chime, Robinhood, DraftKings, and Revolut.

The Fravity acquisition addresses a growing paradox in the fraud prevention space. Socure reported an 8,000% increase in AI-driven fraud across its network last year as generative AI tools make it easier to create convincing fake identities and automate attacks. At the same time, AI could help solve one of the most expensive parts of fraud prevention: the labor-intensive work of investigating flagged cases.

Across its existing deployments, Fravity has reduced cost per case by 80%, sped up case resolution fivefold, and cut false positives by as much as 70%, the companies say. Fravity's technology will be incorporated into Socure's RiskOS platform as RiskOS_Agents, initially focusing on watchlist screening and know-your-business checks.

The deal puts Socure more directly into what identity intelligence company Liminal estimates is a $71.1 billion financial crime investigation market. At banks, 53% spend at least an hour reviewing each alert, and 37% manually review more than 40% of alerts — highlighting the potential for AI-driven automation.

"I believe there are two types of companies that matter in the AI-driven global economy: those that are AI-native, and those that fight the consequences of AI acceleration," said Socure CEO Johnny Ayers.

In May, Socure won a five-year, $163 million federal contract to provide identity-proofing technology for Login.gov, marking an expansion beyond its financial services roots.

Sources