Oslo’s mobile authentication firm Encap has announced a major new investment from the ProVenture seed fund. The exact amount hasn’t been disclosed, but rumours circling the web put the figure around the $2 million mark.
It’s the second major investment in Encap from a Norwegian backer, adding to earlier money from Alliance Ventures. Norwegian startups tend to look abroad for funding rather than rely on the small domestic VC scene, so today’s news is a welcome change.
Encap provides simple software-based, two-factor authentication and digital signing for the enterprise and banking sectors. The mobile technology is well-established in Norway, approved by the Norwegian Banks’ Standardisation Office, and used by banking clients including Santander Consumer Bank.
“Awareness of multi-factor authentication is increasing as a result of high profile security breaches and moves by industry giants to invest in new ways to defend their users and themselves,” says Thomas Bostrøm Jørgensen, CEO, Encap. “There is enormous demand for alternative technology that takes advantage of mobility and the cloud to offer a solution that’s simply better and more transparent to the user. ProVenture Seed has a track record of helping technology companies succeed in a global market.”
“Our dream is to deliver uncompromising speed, security and simplicity to users and businesses around the world. ProVenture Seed will help us to realise this dream,” concludes Jørgensen.
Following their success in the Nordic Startup Awards, Encap opened a Palo Alto office in February. With Twitter, Google, and LinkedIn all experimenting with two-factor authentication, it’s clear why ProVenture is betting big:
“Encap is a company with the potential to disrupt a market that will be worth more than $5bn by 2017,” says Herbjørn Skjervold, Managing Partner, ProVenture Seed.
“Multi-factor authentication combined with risk profiling is now seen as the replacement for passwords, but the exact mechanism to deliver this level of security is still in flux. This presents an enormous opportunity. Encap has all of the advantages of the systems currently being adopted by the big players, but none of the downsides – it is well positioned to take advantage of dissatisfaction from both users and service providers.”
A former IT Project Manager, David Nikel now works as a technology writer in Norway. He helps Norwegian companies communicate in English and reports on the entrepreneurial scene for ArcticStartup.
Top Image Courtesy of Shutterstock // Digital Security