1414 Ventures Reports $100 Billion Growth in Digital Identity Market

BOSTON, December 20, 2023 (VSNewsNetwork.com) - 1414 Ventures, a venture capital firm focused on pre-seed and seed funding for digital identity solutions, has released an end-of-year analysis showing significant growth in the Digital Identity MarketScape. The market has grown by approximately $100 billion over the last year, reaching a total value of $763 billion, and is projected to hit $1 trillion in the coming years.

Digital Identity (DI) is the unique representation of individuals, organizations, or devices in the digital world, encompassing information and attributes that distinguish one online entity from another. DI plays a critical role in online authentication, authorization, and personalization processes, becoming increasingly important in the data economy where information sharing and storage drive personal and business interactions.

The growth in the DI market is attributed to the rising incidences of identity fraud and cyberattack data breaches. A recent Forbes article indicated a 40-45% spike in global cyberattacks this past year. Additionally, the Federal Trade Commission's Consumer Sentinel report showed a 50% rise in total reported fraud loss from $6.1 billion in 2021 to $9 billion in 2022, despite a 15% drop in the number of reported fraud cases. The expansion of online transactions and the development of new analytical tools to support the digital ecosystem have also driven market growth.

Two key market subsectors, Transaction Detection, Fraud Prevention & Risk Management (FPRM), and Customer Identity Access Management (CIAM), have shown significant growth and relevance. The FPRM market, which uses identity intelligence to prevent cybercrimes and payment fraud, grew 19% from $2.8 billion in 2022 to $3.3 billion in 2023. The CIAM market, essential for storing and identifying customers’ digital identities securely, expanded 58% from $994 million in 2022 to $1.5 billion in 2023.

Jackie Shoback, co-founder and Managing Director of 1414 Ventures, emphasized the importance of safeguarding information. "Digital identity platforms that offer efficiency while meeting privacy and security requirements will dominate as the stakes continue to escalate in this growing digital economy,” Shoback stated.

For more information on 1414 Ventures and their investments in digital identity technology, visit www.1414Ventures.com.

Source: 1414 Ventures via Newswire