Descope, a company specializing in identity and access management (IAM), recently secured an additional $35 million in a seed funding extension. This latest investment brings the total capital raised by the company to $88 million. The funding came from several of Descope’s existing investors, including Cerca Partners, Dell Technologies Capital, Lightspeed Venture Partners, Notable Capital, Triventures, and Unusual Ventures. This substantial cash infusion underscores the confidence investors have in the startup’s growth trajectory and its potential to disrupt the customer identity and authentication landscape.
Founded in 2022 and based in Los Altos, California, Descope made a significant splash with its initial $53 million seed funding round in 2023. The company has positioned itself as a key player in the identity market by offering a no-code/low-code external IAM platform. This platform is designed to manage identities for a wide range of users, from customers and business partners to internal applications and even AI agents. It provides a comprehensive solution for managing visibility and preventing security threats like account takeovers, giving organizations robust control over their digital identities.
Descope’s solution simplifies the process of adding new identities through visual workflows that handle both the user interface and the underlying backend logic. This innovative approach allows organizations to easily manage, merge, and synchronize identities across their systems. Additionally, the platform integrates powerful security controls to combat common cyber threats such as phishing and credential stuffing attacks. The ease of use and advanced security features make it an attractive option for businesses looking to streamline their identity management processes while enhancing their security posture.
The company reports that its platform is already being utilized by hundreds of organizations of varying sizes and across multiple industries in the Americas, EMEA, and APAC regions. This widespread adoption demonstrates the effectiveness and scalability of its no-code/low-code approach. The new funding will be strategically deployed to fuel further innovation, with a specific focus on research and development in agentic identity—a crucial area for the future of AI. The company also plans to use the capital to expand into new geographical regions and significantly grow its engineering, customer experience, and product teams.
Oren Yunger, managing partner at Notable Capital, highlighted the growing need for new security models driven by the rise of AI agents and MCP servers. He noted that Descope is well-positioned to meet this demand, stating that the company is already “establishing itself as a force in the customer identity market.” Yunger believes that Descope’s rapid innovation and product development have laid the groundwork for it to become the “go-to identity provider” for these emerging technological ecosystems. The investment is a clear vote of confidence in Descope’s ability to lead the market as digital identity evolves.
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