Baselayer, a San Francisco-based AI startup specializing in identity verification for financial institutions, has raised $35 million in a Series A funding round led by M13. The company plans to use the capital to extend its technology to AI agents. This funding brings Baselayer’s total raised since its 2023 inception to about $40 million, according to co-founder and CEO Jonathan Awad.
Baselayer combines business identity, credit, and fraud data to help banks, fintech firms, and other financial services providers assess fraud risk and verify prospective customers. Its automated platform initially focused on Know Your Business (KYB) verification, fraud detection, and risk management. The company sells its products directly and through software partners who rebrand the technology. More than 2,000 financial institutions, representing over 20% of such institutions in the U.S., use Baselayer’s services to onboard and underwrite merchants.
The startup’s technology has helped customers prevent over $1 billion in fraud losses since its founding. Baselayer also serves Fortune 500 companies and employs about 50 people across offices in San Francisco and New York. Investors in the round include Picus Capital, Torch Capital, Afore Capital, and Matt Thompson of Socure. The company declined to disclose its valuation or exact revenue figures.
Baselayer’s expansion into AI agent verification reflects growing demand for robust identity and fraud risk solutions in the financial sector. The company’s next milestone will be scaling its AI-powered platform to new markets and customer segments, leveraging the $35 million raised in this round, as reported by news.crunchbase.com.