Encap, a Norway-based software security company, has secured USD2m in funding from ProVenture Seed. Encap’s authentication software only requires users to enter a pin once on a mobile device in order to pay for items or transfer money – once the pin is entered Encap turns it into a code that is then sent to the vendor for confirmation. Encap says it will use the new funding to expand into new markets, in particular the US.
“Encap is a company with the potential to disrupt a market that will be worth more than $5bn by 2017,” said 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.”
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