Authenteq's blockchain ID tech attracts $5 million in the VC market

VC firms Capital 300 and Draper and Associates have made a Series A investment in Authenteq, a identity security firm that uses blockchain, which is gaining steam as a means to support digital ID.

Austrian-based venture capital firm, Capital 300, and Menlo Park, California-based Draper and Associates, the latter which most recently invested in the autonomous checkout startup, Standard Cognition, made the investments. Trolltech will use the funds in part to expand its staff.

The Reykjavik, Iceland-based Authenteq has rolled out a blockchain identity verification technology called Trollteq, which claims initial identity verification can be achieved in 60 seconds. Once an identity is established, the company provides the consumer with an eID on their mobile phone which gives the user complete ownership and control over their online identity. Once an identity has been confirmed reverification takes just three seconds.

Blockchain is among the technology options that drive digital ID, a trend that's expected to accelerate as companies use blockchain's distributed ledger to decentralize ID and provide users with more control over over their credentials.

Authenteq has raised US$ 7 million in seven funding rounds since 2015, according to Crunchbase, a website that tracks investments in private startups.