ID.me raises $340M in funding to combat AI-driven fraud, tops $2B valuation

It’s been nearly five years since TechStartups last featured ID.me, the McLean, Virginia-based startup that simplifies how people prove and share their identity online. Back then, the company raised $100 million at a $1.5 billion valuation and joined the unicorn club.

Now, ID.me is back in the spotlight with a fresh $340 million round that pushes its valuation past $2 billion. The financing, which combines equity and a credit facility, was led by Ribbit Capital with support from existing investors Ares Capital and Moonshots Capital, plus new investor Positive Sum.

The new funding comes as digital identity verification takes center stage in an economy reshaped by artificial intelligence. “Fraud is evolving at the speed of AI—and so are we,” said founder and CEO Blake Hall. The company plans to use the cash to expand access to its digital identity wallet and double down on stopping fraud driven by AI.

Digital Identity Startup ID.me Hits $2B Valuation with $340M Raise

Founded in 2010 by Hall, Matthew Thompson, and Tanel Suurhans, ID.me has built a digital identity network that allows consumers to prove who they are online in contexts where trust matters most—from accessing government benefits to verifying credentials for exclusive offers. For organizations, the startup offers a single API endpoint to validate users at scale, with the goal of minimizing friction while improving security.

That mission has already proven its value. Seven states credited ID.me with preventing more than $270 billion in unemployment fraud during the pandemic. Today, the company serves over 152 million users—nearly 60% of U.S. adults—and added 20.4 million new digital wallets in 2024 alone.

The startup works closely with agencies like the Department of Veterans Affairs and the IRS to secure sensitive access points. It was previously recognized by the U.S. Department of Commerce as one of the top five identity companies in America and was awarded a $2.8 million federal grant to participate in the National Strategy for Trusted Identities in Cyberspace.

John Clark of Ares Management summed up the growing need: “As AI reshapes the economy and new fraud risks emerge, we believe ID.me’s digital identity wallet will become even more essential in enabling secure connections between large organizations and their users, while also minimizing friction and improving the end-user experience.”

With fresh capital and rising threats, ID.me is positioning itself at the center of the fight against fraud in an era where digital trust is becoming a necessity.

ID.Me founder and CEO Blake Hall