Friday 29 June 2018 4:15 pm

City veteran Michael Spencer invests millions into a biometric fintech startup

Founder of NEX Group and serial entrepreneur Michael Spencer has led a $16.5m series B fundraising round into a biometric fintech startup called Veridium.

A leader in user authentication through biometric technology like fingerprint and face scanning, Veridium's round was accompanied by additional investment from Citrix Systems and financial services investor Michael Powell.

"In today’s digital age, global organisations are challenged to secure their most critical assets against advanced threats in a way that’s both convenient and secure," said Spencer.

"Veridium is unique in the industry because it provides organisations with an enterprise-ready authentication solution to address those problems with the adoption of biometrics – while increasing security and convenience."

The funding will power Veridium's innovation goals, accelerating product development into biometric scanning and behavioural analysis. The startup also plans to meet renewed customer demand by expanding internationally across Europe, Asia and the Americas.

Though it cannot reveal the names of its customers, Veridium has said that it recently cut a deal with a multinational Swiss bank to replace its passwords, tokens and swipe cards in favour of using biometric tech for its employees.

Spencer will join Veridium's board of directors as part of the deal. NEX Group, of which he is the group CEO, is in the process of being acquired by CME Group for $5.5bn.

"We are delighted to have the support of Michael Spencer, Michael Powell and Citrix to continue our journey to build best-in-class biometric authentication solutions," said James Stickland, CEO at Veridium.

"With the financing, we’re committed to continue driving innovation of our biometric authentication solutions while driving global scalability to meet customer needs."

Spencer also recently upped his stake in English winery Chapel Down, making him the largest shareholder at 25.9 per cent.