Jumio

Not to be confused with Jumia.
Jumio
Company typePrivate
IndustryIdentity verification services
Founded2010; 14 years ago (2010)
FounderDaniel Mattes
Headquarters
Palo Alto, California
,
USA
Number of locations
Palo Alto, CA; Linz, Austria; Vienna, Austria; London, UK
Key people
  • Stephen Stuut (CEO)
  • Robert Prigge (CRO)
  • James Cook (GC)
ServicesIdentity Verification Services
Websitewww.jumio.com

Jumio is an online mobile payment and identity verification company that offers card and ID scanning and validation products for mobile and web transactions.[1][2] They sell these products under the brand name "Netverify Trusted Identity as a Service."

History

Jumio was founded in 2010 by Daniel Mattes and backed by Andreessen Horowitz and Eduardo Saverin (co-founder of Facebook), among others. Mattes resigned in 2015 following an internal board investigation. Stephen Stuut took over as CEO in 2016, and Jumio filed for Chapter 11 in March of that year. Jumio was subsequently acquired by Centana Growth Partners in May.[3][4]

In August of the same year, Jumio raised $15 million from the private equity firm Millennium Technology Value Partners and Centana Growth Partners.[5]

The company continued its upward trajectory, raising $150 million in March 2021 and being named "Best Fraud Prevention Solution" by the 2023 Tech Ascension Awards.[6]

When Jumio declared bankruptcy, a shareholder filed a lawsuit against Eduardo Saverin, one of the company’s backers, and other former executives for gross mismanagement of the company’s finances. A spokesperson for Saverin stated that the lawsuit had "no merit."[7]

In 2019, the Securities and Exchange Commission charged Mattes with defrauding investors. Mattes agreed to settle the charges for over $17 million. According to the SEC complaint, Mattes had grossly overstated Jumio's revenue in 2013 and 2014 and then sold his personal shares to investors for $14 million, concealing these sales from the board. In 2015, the company corrected its financial results and filed for bankruptcy in 2016.[8]

Around the same time, the SEC settled a separate case against Chad Starkey, former CFO of Jumio, for his involvement in Mattes's actions. The settlement required Starkey to make a payment of approximately $420,000.[9] In February 2023, Jumio faced litigation as the provider of Binance's biometric services. An Illinois resident claimed that Jumio violated the state's Biometric Information Privacy Act (BIPA), by collecting and storing the biometric data of Binance customers. Jumio sought to have the case dismissed, but a judge ruled that the case had merit.[10]

References

  1. ^ Perez, Sarah. "Jumio Turns Webcams Into Credit Card Readers, on Desktop and Mobile". New York Times. Retrieved 12 November 2013.
  2. ^ Wauters, Robin (21 February 2013). "Jumio debuts real-time ID verification solution Netverify for Android apps". The Next Web. Retrieved 12 November 2013.
  3. ^ "Exclusive: Jumio swaps CEOs after examining its books - Fortune". fortune.com. Retrieved 16 July 2016.
  4. ^ Winkler, Rolfe (25 December 2015). "Jumio Restates Financial Results for 2013 and 2014 - Digits - WSJ". Wall Street Journal. blogs.wsj.com. Retrieved 16 July 2016.
  5. ^ Corp, Jumio (2016-08-30). "Jumio Momentum Continues With $15 Million Financing Round". GlobeNewswire News Room (Press release). Retrieved 2023-11-29.
  6. ^ Lunden, Ingrid (2021-03-23). "Jumio raises $150M with 300M+ verified IDs on its platform". TechCrunch. Retrieved 2023-11-29.
  7. ^ Savchuk, Katia. "Investor Sues Billionaire Eduardo Saverin Over Jumio Bankruptcy". Forbes. Retrieved 2023-11-29.
  8. ^ "SEC.gov | SEC Charges Former CEO of Silicon Valley Startup With Defrauding Investors". www.sec.gov. Retrieved 2023-11-29.
  9. ^ "SEC.gov | SEC Charges Former CEO of Silicon Valley Startup With Defrauding Investors". www.sec.gov. Retrieved 2023-11-29.
  10. ^ "Binance Software Provider Jumio Must Face Biometric Privacy Suit". news.bloomberglaw.com. Retrieved 2023-11-29.