Onfido’s Acquisition by Entrust: A SEIS Success Story

SEO Meta Description: Explore how SEIS investments contributed to Onfido’s successful acquisition by Entrust, showcasing the potential of early-stage funding.

Introduction

In the dynamic world of startups, having effective exit strategies is crucial for both founders and investors. Onfido’s acquisition by Entrust stands as a quintessential example of how Seed Enterprise Investment Scheme (SEIS) investments can drive remarkable success. This story not only highlights the potential of early-stage funding but also underscores the importance of strategic investment approaches in the startup ecosystem.

The Journey of Onfido

Founded in 2012 by Oxford students Husayn Kassai, Eamon Jubbawy, and Ruhul Amin, Onfido emerged as a global leader in identity verification. Utilizing advanced AI tools, Onfido has played a pivotal role in combating identity theft and detecting deep fakes, reportedly preventing over \$6 billion in potential fraud. The company’s innovative approach positioned it at the forefront of the fintech industry, making it an attractive acquisition target.

The Role of SEIS Investments

Onfido’s early success can be significantly attributed to the support from the SFC Angel Network through SEIS. Securing an initial £120k investment at one of the early SFC Crocodile Lair events in London provided the necessary capital to propel the startup forward. SEIS not only offered financial backing but also entailed valuable mentorship from seasoned investors like Stephen Page, who later joined Onfido’s board.

Impact of the Acquisition

The acquisition of Onfido by US payments giant Entrust marks one of the most significant tech exits in recent UK history. Valued as one of SEIS’s greatest successes, this deal is anticipated to deliver a 100x return for SFC Angel Network investors, positioning it just below Deliveroo’s IPO success in 2021. The recognition of this achievement was further cemented when Onfido was honored with the ‘Exit of the Year’ award by the UK Business Angel Association.

Lessons in Startup Exit Strategies

Onfido’s journey offers valuable insights into effective startup exit strategies:

• Early-Stage Investment: Leveraging SEIS can provide startups with the necessary funds and strategic support to scale.
• Investor Relations: Building strong relationships with investors can lead to long-term benefits, including board positions and strategic guidance.
• Market Positioning: Establishing a strong foothold in a niche market, such as identity verification, can attract significant acquisition interest.
• Adaptability: Remaining agile and responsive to market needs ensures sustained growth and attractiveness to potential acquirers.

How Oriel IPO Facilitates Similar Success

Oriel IPO, an innovative online investment hub, aims to replicate and amplify success stories like Onfido’s. By connecting investors with entrepreneurs through SEIS and EIS opportunities, Oriel IPO democratizes investment, making it accessible to both seasoned and novice investors. The platform’s commission-free model, combined with comprehensive support tools and educational resources, creates an environment conducive to fostering robust startup ecosystems and facilitating successful exits.

Conclusion

Onfido’s acquisition by Entrust exemplifies the profound impact that SEIS investments can have on startup success and exit strategies. This landmark deal not only benefits investors through substantial returns but also highlights the critical role of strategic funding in driving innovation and growth within the fintech sector. As platforms like Oriel IPO continue to support and democratize early-stage investments, more success stories are poised to emerge, shaping the future of startup exit strategies.

Discover how you can be part of the next success story with Oriel IPO.