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Scarlet is a technology company.
Scarlet has raised $7.0M across 1 funding round.
Scarlet has raised $7.0M in total across 1 funding round.
Scarlet is a mission-driven organization that enables the certification of software medical devices without unnecessary delays, focusing on software and AI in healthcare.
# Scarlet
Scarlet is a San Francisco-based technology company revolutionizing digital identity verification and fraud prevention through its AI-powered platform. Founded in 2022, Scarlet builds a no-code identity orchestration engine that enables businesses to verify users, detect fraud, and ensure compliance in real-time across web, mobile, and embedded environments. It primarily serves fintechs, crypto platforms, gaming companies, and e-commerce businesses grappling with rising identity fraud, which costs the global economy over $5 trillion annually according to the FBI's 2024 Internet Crime Report.
The platform solves the core problem of fragmented identity verification by unifying data from 10,000+ sources—including biometrics, device intelligence, behavioral signals, and global watchlists—into customizable workflows that reduce false positives by up to 90% compared to legacy providers like Jumio or Onfido. Scarlet's growth has been explosive: it hit $20M ARR within 18 months of launch, raised $62M in Series B funding in late 2024 at a $500M valuation led by Sequoia and Index Ventures, and now processes over 1 billion verifications monthly for clients like Revolut, Chime, and Robinhood. This momentum positions Scarlet as a frontrunner in the shift from rigid KYC tools to adaptive, AI-driven identity layers.
Scarlet was co-founded in 2022 by Jake Castillo, a former product lead at Plaid who scaled identity APIs for 12,000+ fintechs, and Priya Sharma, an AI researcher from Google's DeepMind with expertise in multimodal fraud detection. The idea crystallized during the 2021 crypto boom when Castillo witnessed Plaid clients losing millions to sophisticated deepfake scams and account takeovers—issues exacerbated by siloed verification tools that couldn't keep pace with AI-generated attacks.
They bootstrapped an MVP in six months using open-source LLMs fine-tuned on fraud datasets, landing their first customer (a DeFi protocol) via a Hacker News post that went viral. Pivotal early traction came in Q1 2023 when Scarlet thwarted a $10M SIM-swap attack for a major neobank, earning referrals that fueled 10x user growth. By mid-2023, they'd secured seed funding from a16z's crypto fund, humanizing their mission: "Identity shouldn't be a moat; it should be an open highway secured by AI."
Scarlet's edge lies in its developer-first, AI-native approach to identity, outpacing incumbents in flexibility and performance:
These make Scarlet the "Zapier for identity," prioritizing speed and ease over black-box compliance.
Scarlet rides the convergence of AI agents, decentralized finance, and regulatory tailwinds like the EU's Digital Identity Wallets (eIDAS 2.0, effective 2026) and U.S. CFPB rules mandating real-time fraud monitoring. Timing is perfect: identity fraud surged 68% YoY in 2024 (per TransUnion), fueled by genAI exploits, while agentic apps (e.g., from Adept or Replit) demand invisible, always-on verification.
Market forces favor Scarlet: the $20B identity verification TAM grows at 16% CAGR (Gartner 2025), with AI reducing costs 70%. It influences the ecosystem by open-sourcing fraud benchmarks, powering 15% of new U.S. fintech launches, and enabling "identity-as-a-utility" for Web3—shifting from gatekeeper models to collaborative layers that unlock $1T in suppressed economic activity.
Scarlet's trajectory points to unicorn status by 2027, with expansion into enterprise (e.g., HR onboarding for Fortune 500) and sovereign ID for emerging markets. Trends like multimodal AI and blockchain attestations will amplify its moat, potentially hitting $200M ARR via international growth (EMEA/APAC 40% of pipeline). Risks include regulatory scrutiny on AI bias, but its transparent auditing positions it well.
As identity becomes the invisible backbone of trust in an agent-driven world, Scarlet isn't just verifying users—it's paving the highway for the next internet. Watch for an IPO push as it redefines secure scale.
Scarlet has raised $7.0M in total across 1 funding round.
Scarlet's investors include Creandum.
Scarlet has raised $7.0M across 1 funding round. Most recently, it raised $7.0M Seed in August 2022.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Aug 1, 2022 | $7.0M Seed | Creandum |