RRE is thrilled to announce our lead investment in the Series A of HYPR, the first truly decentralized biometrics as a service platform for enterprise.
It’s hard to open the news these days without another headline about a major security breach. From LinkedIn to Yahoo to Equifax, these failures all have one thing in common - customer information sitting in centralized databases. When data is stored centrally it is not a matter of if, but when it will be breached.
Enter HYPR. What HYPR does is decentralize and encrypt biometrics. That data is never transferred or kept in a primary repository. Instead it is matched against an encrypted template that is stored locally on a user’s device. The enterprise receives only a token consisting of a random numeric string that ensures the user is who they say they are. Hackers can login with a stolen fingerprint, but not with a biometric token. And with no centralized treasure trove of personal credentials there’s no easy target for hackers and the risk of a mass data breach is greatly reduced. HYPR knocks the legs out from under a business that’s long been in need of a takedown - the booming business of credential theft.
At RRE, we spend a lot of time working with Fortune 500s in our network to match their needs with solutions from our portfolio. The growing demand to secure personal credentials is clear among our industry partners - from banking to automotive to retail. HYPR’s value proposition has resonated strongly and customers already include household names across these sectors.
The other tailwind is the evolution of both hardware and consumer behavior. Mobile is different than it was 10 years ago, and the way we access our personal information should be too. No-one should have to re-enter their password and pin every two minutes. Consumers have become more comfortable with the concept of logging into their bank account and apps using a fingerprint. Most recently, biometric authentication got a high-profile boost with the unveiling of the iPhone X, which uses a forward-facing camera system and depth sensors to enable facial recognition. As smartphones increasingly become used as access tools, this trend will accelerate. Biometrically authenticated payments are also on the rise - the value of those transactions is forecast to shoot from $14.2 billion in 2016 up to to nearly $655 billion in 2021.
The HYPR solution enables enterprises to choose from a range of out-of-the-box modalities that are ready to deploy across billions of devices and sensors. By making it easy for enterprises securely integrate new sensors as they become available, HYPR will accelerate the arrival of biometric IoT, or as they like to call it these days, “Bio-T.”
"We are believers in a decentralized, biometrically secure future," says RRE Managing Partner Jim Robinson, who has joined HYPR’s board. “George Avetisov has assembled an experienced team to tackle a huge problem, and the company has already demonstrated impressive commercial traction with big companies. We are excited to back a breakout company here in New York."
At RRE, we love investing in companies whose products empower users and solve real problems for enterprise. HYPR does both in a big way. We couldn’t be more excited to partner with George, Bojan, Roman and the team to help build a vastly more secure world.