Socure raises $156M, buys AI startup Fravity

Identity verification and fraud prevention company Socure announced on Thursday that it raised $156 million in a strategic growth investment, valuing it at $5.2 billion. The Nevada-based firm is also acquiring Austin-based agentic AI startup Fravity to automate more financial crime investigation work.

Summit Partners led the investment, which includes primary capital and a secondary tender offer for employees. Goldman Sachs Alternatives, Wells Fargo, and Docusign also participated. Socure did not disclose the terms of the Fravity acquisition.

With this funding, Socure has now raised over $742 million in disclosed funding since its 2012 founding. Its valuation was previously $4.5 billion during its Series E round in 2021.

Rapid growth and financials

The company told Crunchbase News it ended the second quarter with $364 million in annual recurring revenue, a 63% increase from the same period a year earlier. It added 95 customers during the quarter, including Circle, Cox Automotive, MoneyLion, and Login.gov. Socure claims to be growing profitably.

It now serves more than 3,000 enterprise customers. These include 19 of the 20 largest U.S. banks, over 600 fintech companies, and 160 public-sector organizations. Specific customers named are Capital One, Citi, Chime, Robinhood, DraftKings, and Revolut.

The AI fraud challenge

Socure co-founder and CEO Johnny Ayers said AI presents both an opportunity and a problem. The company reported an 8,000% increase in AI-driven fraud across its network last year. Generative AI tools make it easier to create convincing fake identities and automate attacks.

At the same time, AI could help address the costly process of investigating the large volume of cases flagged for human review. This is where the acquisition of Fravity fits in.

Automating investigations with Fravity

Fravity has built an AI-native platform that uses agents to automate fraud, risk, and compliance investigations. Its technology will be integrated into Socure's RiskOS platform as RiskOS_Agents, initially focusing on watchlist screening and know-your-business checks.

The companies say Fravity has reduced cost per case by 80%, sped up case resolution fivefold, and cut false positives by up to 70% in existing deployments. Socure and Fravity already share several enterprise customers.

The acquisition moves Socure into what identity intelligence company Liminal estimates is a $71.1 billion financial crime investigation market. Liminal data indicates 53% of banks spend at least an hour reviewing each alert, and 37% manually review over 40% of alerts.

Ayers argues the identity layer is becoming more critical. "I believe there are two types of companies that matter in the AI-driven global economy: those that are AI-native, and those that fight the consequences of AI acceleration," he said.

Expansion beyond finance

The investment follows a period of expansion for Socure beyond financial services. In May, the company won a five-year, $163 million federal contract to provide identity-proofing technology for Login.gov. It is also pushing further internationally.

According to Ayers, Socure had more than 550 employees as of March 2026, an increase of more than 100 from about a year earlier.