AI agents are everywhere—and investors are betting big on the tools designed to tell humans apart from machines. As AI-generated traffic outpaces real users online, startups focused on identity security are raking in hundreds of millions to keep up with the demand for more advanced verification and fraud prevention tools.
Just this week, two major players in the identity verification space, Persona and Veza, collectively pulled in over $300 million in fresh funding. Their mission? Building smarter ways to secure online identities in a world where bots can now pass for people.
Persona and Veza Secure Mega Rounds to Combat AI-Driven Threats
San Francisco-based Persona raised a hefty $200 million in a Series D round led by Founders Fund and Ribbit Capital. The company, known for its identity verification platform, says the new capital will help them fine-tune tools for an AI-dominated digital landscape—where bots already generate more traffic than real users.
Just days earlier, Veza, another identity-focused startup from Silicon Valley, announced a $108 million Series D round led by New Enterprise Associates. Like Persona, Veza positions its platform as built for the age of autonomous AI agents. The startup is focused on enabling secure access and identity governance in complex enterprise environments.
Meanwhile, Scan Your Eye at the Mall? Worldcoin Expands in the U.S.
The week also brought an unusual sight: iris-scanning stations popping up in U.S. malls. World, a controversial startup co-founded by Sam Altman, launched several American locations where users can have their eyes scanned as part of an effort to verify their humanity via biometric and blockchain technologies.
World, previously known as Worldcoin, aims to build a global identity verification system that distinguishes humans from machines. The company has raised $244 million to date from top investors like Andreessen Horowitz and Blockchain Capital. The goal is simple but timely: protect identity in an era where AI-generated personas are becoming harder to spot.
Investors Are Doubling Down on Identity Security
And these aren’t isolated deals. The identity security market has been on a tear lately. According to Crunchbase, over a dozen startups in the space have closed substantial funding rounds in the past year.
Among them, Aura, a Boston-based platform that offers consumer protection against scams, identity theft, and online threats, raised a $140 million Series G in March. That brings its total funding to over $660 million.
Another major player, Semperis, offers tools for identity threat detection and response. The New Jersey-based company has attracted close to $500 million, including a $125 million raise at a unicorn valuation last year.
Even younger startups are getting attention. Reality Defender, a New York-based company working on deepfake detection, raised a round from strategic backers recently, signaling strong interest in tech that helps verify what’s real online.
Public Markets Back the Trend Too
Investors in the public markets are also bullish on identity security. Shares of Okta, a well-known identity verification provider, have surged more than 50% over the past six months. CyberArk, another identity security software provider, has seen its market value climb to around $17 billion.
Why the Market Is Booming
The surge in funding and interest is no accident. Spending on identity and access management (IAM) is expected to surpass $24 billion this year, growing 13% year-over-year, according to the Identity Management Institute.
Several factors are fueling that growth. The shift to hybrid and remote work means more logins from more devices, making identity verification critical. At the same time, biometric authentication is gaining ground, reducing reliance on passwords.
But perhaps the most pressing factor is the rise of AI agents. Persona projects that by the end of this decade, bots and AI agents could account for 90% of online traffic. These bots can generate realistic text, crack CAPTCHA tests, and even mimic human behavior to an uncanny degree.
That presents a massive opportunity—and challenge—for identity tech companies. As the line between human and machine continues to blur, tools that verify identity with speed and precision are no longer optional. They’re essential.
For startups building the infrastructure to tell us apart from bots, the future looks bright—and heavily funded.
