Araxide Prime, Inc. , developer of the Araxid Identity Platform, announced the closing of the $12 5M Series A funding round jointly led by Bessemer Venture Partners (BVP) and Columbia Capital (ColCap) The funds will be used to extend the technology currently used by health and public sector leaders and to apply it to other industries such as retail, telecommunications and financial services.
Araxid offers next-generation SaaS-based technology to resolve linkages and privatize disparate identities stored in one or more databases-whether customers, partners or employees. It can be implemented as a stand-alone solution or plugged into existing on-site Master Data Management (MDM) solutions to radically improve matching rates without additional work. Araxid technology is based on a new identity matching model called ‘truth matching,’ as opposed to the traditional ‘probabilistic matching’ used by existing MDM and Master Patient Index (MPI) technologies. Truth matching is ideal for delivery of SaaS, making it much faster to deploy and much cheaper to operate and maintain.
‘We believe that Araxid is the only company offering a pure SaaS-based identity matching and resolution solution,’ said Mark LaRow, CEO of Araxid. ‘Not only is ARAXID technology faster and cheaper than traditional matching technologies, it is far more accurate Benchmark studies with very large organizations show that araxid truth matching can achieve 98% accuracy, while probabilistic matching with market-leading MDM products only achieved 70% accuracy. Faster, cheaper and better is a good place to stay. ”
According to a wide range of independent studies, about 30% of personal data stored in databases suffer from a certain discrepancy with the truth. ‘The data is out of date, has been incorrectly entered or is the result of fraud; yet this identity data is critical to the access and sharing of medical records by physicians. Retailers need to provide high-quality loyalty services and it is essential that banks achieve a single view of their customers. Identity data mismatches are the cause of customer dissatisfaction, business inefficiency and waste The MDM identity resolution market is expected to grow to nearly $1B in 2015 in response to this widespread problem. Araxid will enter the market with a first-of-its-kind SaaS solution to accelerate and improve MDM solutions.
‘Identity resolution and matching are just the beginning,’ said Brent Williams, founder and CTO of Araxid. ‘Our current and new customers will benefit from our platform extensions such as the Identity Exchange Service (IXS), which allows multiple organizations, such as hospitals, to interact on behalf of a single patient without ever having to share personal data between them. This protects the identity of the individual in a way that is never before possible ”
‘Araxid has been providing identity resolution services to various departments in the federal government for over two years and has had the time and experience to improve its technology,’ said Arun Gupta, Columbia Capital Partner. ‘We are thrilled to be part of the Araxid team at this point, because we see the tremendous growth potential of bringing this benchmarked and proven technology into the commercial space market. ”
‘Because Bessemer has such a strong record of SaaS investments, we’re lucky to see most of the up and coming companies in the category,’ said Kent Bennett, partner at Bessemer Venture Partners. ‘We are excited to partner with Araxid by reinventing a market where less capable and more costly solutions currently dominate. ”
Kent Bennett of BVP and Arun Gupta of Columbia Capital will join the Araxid Board of Directors.
About the araxide
Araxid provides SaaS-based solutions for identity resolution and matching, leading to trusted databases, trusted identities, and trusted transactions. It enables companies and governments to achieve a single view of their customers, streamlines business processes and prevents fraud and waste by eliminating the ambiguity and duplication of client identities in databases. Araxid increases the privacy of personal data by enabling organizations to exchange information without ever disclosing personal information to the customer. Araxid is located at McLean, Va.
About Bessemer Venture Partner
Bessemer Venture Partners (BVP) invests in early-stage and hyper-growth start-ups, partnering closely with entrepreneurs to build sustainable businesses. BVP is a global company with offices in Menlo Park, Cambridge, New York, Bangalore and Herzliya. With $4 billion under management, BVP is investing anywhere from $100,000 to $75 million in innovative companies such as Pinterest, Twilio, Box, LinkedIn, Shopify, Yelp, Skype and CornerstoneOnDemand. Over 100 BVP companies have gone public-in the last three years alone, BVP has had 36 exits (IPO and M&A) and has made new investments in more than 70 companies. Find out more at Please, bvp Com and follow us through Twitter @BessemerVP
About Columbia Capital City
Columbia Capital is a venture capital company based in Alexandria, Va. Since 1989, we have partnered with top executives to help build communications, media and technology companies. We have invested in more than 150 companies, many of which have redefined or created new industries, including Adjoined Consulting, BroadSoft, ICG Communications, MetroPCS, Millennial Media, Mobile Satellite Ventures, Nextel Communications, Ocular Networks, Presidio, Riptech, XM Satellite Radio and Zayo. Columbia is currently managing over $2 8 billion of total capital and is actively investing in our sixth fund.
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