Socure Raises $156M at $5.2B Valuation and Buys AI Fraud Startup Fravity

Socure announced it raised $156 million in a strategic growth investment valuing the company at $5.2 billion. The Incline Village, Nevada-based identity verification and fraud prevention company is also acquiring Austin-based agentic AI startup Fravity.

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

Socure has now raised more than $742 million in disclosed funding since its 2012 inception. The company was previously valued at $4.5 billion at the time of its Series E round in 2021.

Socure told Crunchbase News it ended the second quarter with $364 million in annual recurring revenue, up 63% year over year, and added 95 customers during the quarter. Its customer base now tops 3,000 enterprise customers, including banks, fintechs, public-sector organizations, sportsbook operators and prediction-market operators.

Socure says fraud is becoming more sophisticated as generative AI and related tools make it easier to create convincing fake identities and automate attacks. The company reported an 8,000% increase in AI-driven fraud across its network last year.

That pressure cuts both ways: AI is driving more fraud, but it can also help reduce the manual work needed to investigate alerts. Socure uses AI and machine learning to help customers verify identities, approve real customers quickly and stop fraud.

Fravity has built an AI-native platform that uses agents to automate fraud, risk and compliance investigations. Its technology will be incorporated into Socure’s RiskOS platform as RiskOS_Agents, with an initial focus on watchlist screening and monitoring and know-your-business checks.

Socure said the companies already share several enterprise customers using both products together. Across existing deployments, Fravity has reduced cost per case by 80%, sped up case resolution fivefold and cut false positives by as much as 70%, according to the companies.

The investment follows Socure’s expansion beyond its financial services roots. In May, the company won a five-year, $163 million federal contract to provide identity-proofing technology for Login.gov.

Socure is also pushing further internationally and had more than 550 employees as of March 2026, according to CEO Johnny Ayers. The Fravity acquisition positions the company more directly in financial crime investigation as AI increases the volume and complexity of online identity risk.