Alloy

Alloy sells an identity risk management platform to financial institutions. Its decision engine pulls data from credit bureaus, identity providers, document verification vendors and other sources so that banks, credit unions and fintech companies can automate know your customer and know your business checks, anti money laundering screening, fraud monitoring and credit underwriting through one API and workflow builder. The company was founded in New York in 2015 by Tommy Nicholas, Laura Spiekerman and Charles Hearn. Its customers have included Ally Bank, Brex, Marqeta, Gemini, Ramp and Evolve Bank & Trust.

Alloy announced a $12 million Series A led by Bessemer Venture Partners in September 2019 and a $40 million Series B led by Canapi Ventures in 2020. In September 2021 it raised a $100 million Series C led by Lightspeed Venture Partners, with Canapi Ventures, Bessemer Venture Partners, Avid Ventures and Felicis Ventures participating, at a $1.35 billion valuation. TechCrunch reported that the round took total capital raised past $150 million. In September 2022 Lightspeed and Avenir Growth Capital co-led a further $52 million that valued the company at $1.55 billion. Earlier seed backers listed by Contrary Research include Eniac Ventures and Techstars.

Alloy remains private. At the time of the 2021 round it served more than 200 clients, up from 90 a year earlier, and said annual recurring revenue had tripled over twelve months. By the 2022 extension TechCrunch counted more than 300 customers, about 290 employees and more than a million decisions processed per day across more than 160 data sources. Lightspeed now describes nearly 500 banks and fintechs as customers. The company launched in the United Kingdom in 2023 and has since added partnerships with Q2, Numerated and Sonovate.

Alloy is a case of compliance infrastructure riding the growth of fintech and banking as a service. Its seed and early investors entered roughly four years before the Series A, and the company reached a unicorn valuation six years after founding. The 2022 extension came at only a modest step up from the 2021 price, a pattern common to fintech rounds raised as growth equity investors pulled back that year. No liquidity event has been announced, so returns for its seed, Series A and growth backers remain unrealized.