Blockchain-based Authentication Company NuID Raises $2.5 Million to End Password Breaches

SAN FRANCISCO - Dec. 13, 2018 - PRLog -- NuID (https://nuid.io/), a pioneer in trustless authentication and decentralized digital identity, announced today an equity seed round of $2.5 million which valued the company at $20 million pre-money. The round was led by Jemison Investment, with additional funds coming from 8VC. Both firms participated in NuID's convertible note round in early 2017. Spencer Lacey, investment director at Jemison, will join NuID's board of directors.

NuID plans to use the funds to expand its team and build on the early traction of its trustless authentication solution. The company's technology enables businesses to authenticate customers or employees without having to store or manage their passwords, thereby eliminating the risk of a credential breach. Unlike existing authentication methods which rely on huge centralized password databases, NuID leverages a combination of zero knowledge cryptography and blockchain technology to allow users to prove they know their passwords without having to reveal or share them with anyone.

The term "trustless" has gained use in the distributed ledger space to describe digital and cryptographic systems that allow users to exchange value and information without relying on a trusted intermediary or centralized authority. NuID's CEO and co-founder Locke Brown says that trustless technologies are key to stemming the flow of major data breaches like the recent Marriott attack, which affected 500 million customers. "Businesses are learning that the best way to protect their users' data is to store as little of it as possible," said Brown. "We view passwords as secrets that shouldn't be shared with anyone—including NuID." Passwords are the second-most commonly stolen type of data, behind only email addresses, according to a study published this year.^[1]

NuID recently finalized an integration agreement with a major enterprise identity and access management platform, and last month the company was recognized as one of the 50 most innovative early-stage startups by the Kairos Society at their annual Global K50 Summit.

"NuID has pioneered a novel approach to a secure authentication ecosystem," said Spencer Lacey of Jemison Investment. "We believe that Locke and his team have built a powerful product that will help end mass credential breaches."

NuID released a video on their trustless authentication solution: http://www.youtube.com/watch?v=pjraPbKUsCs




^[1] https://pages.riskbasedsecurity.com/2017-ye-breach-quickview-report

About NuID

NuID is a pioneer in trustless authentication and decentralized digital identity. The NuID platform leverages zero knowledge cryptography and blockchain technology to eliminate the need for businesses to store passwords and other authentication credentials. The company was founded in 2017 and has team members in San Francisco, Seattle, and New York. NuID's mission is to end wide-scale credential breaches by returning data ownership to the individual. For more information, visit: https://nuid.io/.