Here’s the 23-page pitch deck that convinced billionaire Jamie Dinan to bet millions on biometric security company authID.ai
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- Biometric security company authID.ai got creative with fundraising after an investor pulled out.
- The firm turned to existing investors, including billionaire Jamie Dinan, to raise $22.5 million.
- Insider got a copy of the pitch deck the young publicly traded company used to woo investors.
Publicly traded biometric security company authID.ai thought it had locked its working capital in for the next two years last Monday.
With a stock issuance, convertible notes, and a $10 million credit facility from an existing investor, the software-as-a-service firm announced it had $22.5 million to work with in a press release on March 21.
But when the aforementioned investor stepped back and tried to renegotiate the deal, CEO Tom Thimot and his team went to work to raise money from other investors in order to have as many options as possible. In just a few days, Thimot was able to raise the same amount and closed with a new set of investors.
Among them were billionaire hedge-fund manager Jamie Dinan, who put millions of his own money into the company. The company said that the Milwaukee Bucks’ co-owner declined to share exactly how much he has invested in authID.ai now, but the firm said he “more than doubled” his prior investment in the company and his name helped bring aboard additional investors.
“All investors like to invest alongside someone with a reputation like that,” said Thimot in an interview.
Varana Capital, which has an executive on authID.ai’s board of directors, and real-estate developer Stephen Garchik also pumped money into the new round, with Garchik offering a $10 million credit facility that the company can pull from during the upcoming years. Garchik is the biggest shareholder of the company, which scans users’ face and creates a custom link between your identity and your appearance.
The appetite for such a service is massive, Thimot said, given how prevalent online fraud is.
“You don’t have to understand the ins and outs of the technology to understand that a biometric face ID is more secure than a code sent to your phone,” he said.
With the new capital, he’s hoping to expand his sales and marketing to focus on different verticals, such as crypto and payments.
Below is the pitch deck the firm used to raise this new money, highlighting the opportunity authID.ai sees for itself and possible comparable companies in the market.