Middesk Raises $57M Series B Funding

Middesk, the leading identity platform automating business verification and underwriting decisions, announced today that it has raised $57 million in a Series B round. The round was co-led by New York-based private equity and venture capital firm Insight Partners and Canapi Ventures, with additional investments from existing investors Sequoia and Accel, as well as Gaingels. Middesk will use the capital to invest in new and existing products, scale the team, and educate the market about business identity.

Middesk was established in 2019 to address the downstream consequences and challenges associated with onboarding new customers. Middesk’s infrastructure solution provides the tools, data, and documents needed by banks, insurers, credit card companies, lenders, payment firms, payroll companies, and other service providers to automate onboarding in regulated industries. The platform contains complete and up-to date data about businesses. The United States and automatically notifies service providers of changes to its customer base, enabling them to make informed decisions during and after onboarding. This allows service providers and customers to rapidly and seamlessly build an accurate picture and offer the crucial products and services they require to operate, maintain and grow their businesses.

“We believe that more companies working together is good for the economy,”  Kyle MackMiddesk’s CEO and Cofounder. “By accelerating trust between businesses, we can enable more businesses to access the products and services they need to grow and thrive. More successful companies mean more businesses are working together and more jobs are being created.”

“As more transactions and business-onboarding move online, financial institutions are facing increasing risk of fraud. Business customers demand a seamless onboarding process to gain access to financial products. Middesk provides financial institutions the breadth and depth of identity data they need to verify their business customers and mitigate fraud without sacrificing the customer experience,”  Jeff HoringInsight Partners’ co-founder and Managing director. “Middesk is building infrastructure to support all identity-questions for all industries. We look forward to partnering with the Middesk team as they continue to grow.”

Walker ForehandCanapi Ventures’ Partner, Added, “Middesk is the new standard for small business digital identity and trust. The identity product is orders of magnitude better than legacy competitors – stronger data integrity, significantly higher attach and approval rates, and better outcomes for customers. We couldn’t be more excited to partner with Kyle, Kurt, and the Middesk team in bringing forward the next generation of trust solutions for small businesses.”

Middesk has doubled its staff in the past four months and plans to increase that number by the end. Middesk recently launched a complete solution for underwriters that allows them to search and file lien searches. This is a major step towards becoming an all-encompassing business identity platform. Middesk is currently able to power onboarding for Plaid, Affirm, Bluevine, Pipe, and Novo, along with many large banks and lenders.

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