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VerifyYou – Seed
Funded Fund: StoryHouse Fund II  ·  SH Check: $350K  ·  Valuation / Cap: $18.35M  ·  Round: Seed  ·  Closed: 2025-06-25
Dossier generated 2026-07-14 by /deal-dossier  ·  Deal record: reccjgpl9QD44XPnn  ·  Source: Airtable appjxAR3LPe3fkHOp

One-Liner & Thesis

VerifyYou is a privacy-first "proof of humanity" layer that lets platforms confirm a user is a real, unique person without holding their PII, wedging into anti-fraud and anti-bot verification for online communities, marketplaces, and gaming. The company positions itself as "KYC++": a utility layer on top of KYC providers like Persona that returns only the attribute a customer needs (is-a-unique-human, is-over-18) so platforms avoid the liability of holding identity data. Its edge is a founder who lived this problem: CTO and co-founder Marty Weiner (Harvey Mudd '03, Claremont) was Pinterest's founding engineer and Reddit's first CTO, where he battled bots, ban-evaders, and spam at scale.

Validation is early but real. In the 2025-05-07 POGR customer reference call, the gaming-analytics team praised the product's simplicity and 4-hour integration and reported going live on an initial user base; by the 2025-09-09 portfolio call the company had signed its first paying customer, Rare Patient Voice (market research), at $0.30 per verification plus a $3,000 annual platform fee, and was booking 40-50 pipeline calls per week with inbound from NEA, True Ventures (Kevin Rose), and Floodgate. StoryHouse committed $350K via Fund II at an $18.35M valuation: $250K into the priced round plus $100K on a follow-on SAFE, alongside lead Felton Group and West Palm Group / Chrysalis.

Investment Score & Recommendation

71 / 100
INVEST
Biggest driver: an exceptional, category-native technical founder (Reddit's first CTO) attacking a large, fast-growing identity-verification market as AI makes bot and fraud pressure acute. Biggest drag: minimal revenue at entry and an unproven go-to-market run by a green first-time CEO, with pricing that looked expensive relative to traction.
Momentum: Accelerating Red Flags: 3 / 9 Confidence: Medium
Market & TAM8/10
Weight 25%
Team & Founder8/10
Weight 25%
Product & Traction6/10
Weight 20%
Deal Terms & Return6/10
Weight 20%
VC Syndicate7/10
Weight 10%

Deal Box

Round Size
$3.35M
Valuation / Cap
$18.35M
Lead
Felton Group ($2M)
Co-Investors
West Palm Group / Chrysalis ($1M)
SH Check
$350K ($250K priced + $100K SAFE)
Fund
StoryHouse Fund II
Funding Round
Seed
SH Investment Date
2025-06-25

Company Snapshot

Sector
Platform, Security, Identity Management
Location
New York, New York
Headcount
Small (scaling engineering)
Year Founded
2023-06-01
Total Raised
~$3.5M seed (holdco: NestedApps)
Website
verifyyou.io
Status
Private

Market Size

$29.3B
TAM by 2030 Web
Identity verification, from $14.34B in 2025
15.4%
CAGR Web
2025-2030 (Grand View: 16.7% to $33.9B)
Now
Timing
AI-driven bots and fraud raising urgency

The identity-verification market is projected to grow from $14.34B (2025) to $29.32B (2030) at a 15.4% CAGR, with Grand View Research modeling $33.9B by 2030 at 16.7% Web. VerifyYou targets an adjacent "proof-of-personhood" wedge, verifying a real, unique human rather than only running document KYC, a need intensifying as generative AI floods platforms with synthetic accounts and bots.

Competition

CompanyPositioningNote
VerifyYouPrivacy-first "unique human" attestation on top of KYC; returns only the needed attributeSimple API, ~4hr integration; founder is Reddit's first CTO
PersonaConfigurable KYC / identity-verification platform (document, biometric, workflows)Embedded under VerifyYou; the "KYC" VerifyYou layers on top of Web
Worldcoin / World IDProof-of-personhood via iris-scanning Orb hardware plus WLD token~38M users; heavy, hardware-dependent, biometric Web
Footprint / Yoti / Stripe IdentityKYC and reusable identity / document-plus-selfie verificationBroad IDV incumbents and infrastructure alternatives Web

Moat: A privacy-preserving attestation layer (share only "is a unique human" or "is over 18") plus dead-simple integration and a distribution-advantaged founder, against a field split between heavy KYC incumbents and hardware-bound proof-of-personhood schemes.

Traction

1st
Paying Customer Internal
Rare Patient Voice signed, going live (2025-09-09)
$0.30
Per Verification Internal
+ $3,000 annual platform fee; ~5,000 verifications/mo expected
40-50
Pipeline Calls / Week Internal
Per 2025-09-09 portfolio call
~4 hrs
POGR Integration Internal
Live on early users; $10/verification (2025-05-07)

Pre-revenue at the time of StoryHouse's investment (Airtable: Estimated LTM Revenue = Pre-Revenue). Early product traction was strong: POGR (gaming analytics) integrated in ~4 hours and went live, and by September 2025 the company had signed Rare Patient Voice as its first paying logo with a usage-plus-platform-fee model. Expected runway at entry: 15 months Internal.

Exit Potential

M&A
Likely Path
Strategic acquisition by identity / platform incumbent
5-7 yrs
Time to Liquidity
Typical seed-stage horizon
Infra
Return Scenario
$18.35M entry cap; identity-infra multiple on exit

Most probable outcome is a strategic acquisition by an identity or fraud incumbent (Mastercard, Okta, Persona) or a distribution platform that needs native trust (Reddit, Discord, Shopify, Microsoft, each of which appeared as a customer or acquirer-shaped party in diligence). Comparable exit: Mastercard acquired identity-verification company Ekata for $850M in 2021 Web, illustrating strategic appetite for identity infrastructure.

Founders

Marty Weiner
CTO & Co-Founder
CS from Harvey Mudd ('03, Claremont) plus an MS in Computer Engineering from Texas. Founding engineer at Pinterest (5 years), then Reddit's first CTO (2 years, advisor for 2 more). Built VerifyYou after years fighting bots, spam, and fraud at scale; opens B2B doors and attracts senior talent, though he is candidly not the fundraiser and had been Virginia-based.
David Graham
CEO & Co-Founder
Commercial CEO who previously built and operated FuzeMee, a college peer-to-peer marketplace and social app (15 campuses, 100K+ users, ~$1.2M raised). Degree from UVA's McIntire School of Commerce. Scrappy hustler with e-commerce and P2P-marketplace experience, but young and a first-time venture CEO, which diligence flagged as the primary execution risk.
Axel Eschholz
CPO & Co-Founder
Recent computer-science graduate (Acadia University) who originated the concept and first connected with Marty a couple of years before founding, when Marty was advising a startup where Axel's father was an executive. Leads product execution.

Open Questions & Risks

Next Steps

Latest Meeting Notes

2025-09-25 Update Founder update from David Graham Expand
Written update: VerifyYou is running a deliberately tight fundraise to warm VC relationships while staying heads-down on building and capturing market share.
  • Fundraise posture: tight process to feel out the market and warm additional VCs; a few conversations in diligence.
  • Relationships: strong ties to NEA and Floodgate expected to move fast once user-growth and revenue milestones hit.
  • Focus: heads-down building and racing to capture market share.
Full note

Update from David Graham. He appreciated the warm-network dashboard Josh built and will circle back after reviewing it. On fundraising, VerifyYou is sticking to a very tight process to feel out the market and, more importantly, warm up additional VC relationships; a few conversations are in diligence with responses expected within a week. Even if firms come back with "need more traction" (the likely outcome), David believes relationships with firms like NEA and Floodgate mean they will move quickly once key user-growth and revenue milestones are hit. Main focus remains heads-down building and racing to capture market share.

Source: Meeting Notes recge2nzie5V3e0UX
2025-09-09 Portfolio Call Catch-up with Marty & David Expand
First customer signed and going live; strong pipeline but product bottlenecks slowing closes, and multiple larger VCs circling as the team weighs more capital.
  • First customer: Rare Patient Voice (market research) signed at $0.30/verification + $3,000 annual platform fee; ~5,000 verifications/mo expected.
  • Pipeline: booking 40-50 calls/week; a part-time salesperson joining full-time.
  • Bottleneck: needs a web-app / decoupled library delivery vehicle; two deals could close immediately if available.
  • Fundraise: True Ventures (Kevin Rose, via Josh intro), NEA offering $10-15M checks, Shopify/Microsoft interested but want larger rounds.
Full note

Good catch-up with Marty and David as they consider raising further capital. Signed first customer (Rare Patient Voice, market research) closing September at $0.30 per verification plus a $3,000 annual platform fee, with 5,000 monthly verifications expected initially and scaling if successful. Booking 40-50 calls per week with strong pipeline momentum; a salesperson who had been part-time is joining full-time. Key bottleneck is the delivery vehicle for human ID verification: a Product Hunt CTO would start immediately if a web app existed versus a mobile download, so they are building a decoupled library to integrate into partner platforms and could close two deals immediately if available.

Team scaling: hired one junior engineer with a second incoming, plus a Bangalore/Hyderabad dev house, and adding an operations/privacy/security lead for SOC2. New advisors include a former Reddit/Google GC, a CISO advisor, and a sales advisor eager to join full-time. Pricing splits by vertical: revenue-focused in market research (high willingness to pay, since $100+ survey incentives attract scammers) versus distribution-focused for large social platforms. On fundraising, current conversations include True Ventures (meeting Kevin Rose, via Josh's intro), NEA (multiple meetings, offering $10-15M checks, possibly too large), and corporate VCs (Shopify, Microsoft) wanting larger rounds. Josh advised focusing on strategic angels for smaller amounts and not burning bridges with premature top-tier approaches before revenue traction.

Source: Meeting Notes recOnRizxGB2ThzKu
2025-06-02 Deal Call Allocation: priced round vs. SAFE Expand
Call with David to finalize StoryHouse's hybrid allocation: $250K into the remaining priced round plus $100K on the SAFE, with angel co-investment from Josh and Scott.
  • Allocation: $250K on the priced round plus up to $100K on the SAFE; David comfortable, pending George's sign-off.
  • Angels: Josh and Scott could add $50K-$150K on the SAFE alongside SH's $100K.
  • Cap table: former part-time contributors (Chris, John) already diluted in the reorg; amicable, further dilution acceptable.
Full note

Call with David to discuss allocation between the priced round and the SAFE. David had no problem with StoryHouse finishing the remaining priced allocation and would have suggested it, but assumed SH would not want a hybrid; he will confirm with George. StoryHouse proposed $250K on the priced round plus up to an additional $100K on the SAFE, and flagged that Josh and Scott could likely come in for $50K-$150K on the SAFE alongside SH's $100K; David was unaware of Josh and Scott and would check with Marty. On the cap table, Chris is still working ~10 hours/week unpaid; Chris and John were both diluted during the new org structure and understand they would be further diluted unless they join full-time, and the relationship is amicable. David thanked SH for the intro to Ryan, with plans to stay in touch when Ryan has team buy-in.

Source: Meeting Notes recg0SbvzwbdkMNK9

Deal Timeline

Reference Calls

2025-05-07 Reference · POGR Customer reference (referenced founder: Marty Weiner)
POGR (seed-stage indie-game analytics) is an early VerifyYou customer. Its CEO and CTO praised the product's simplicity, sub-4-hour integration, and inherent virality; the CTO's security background made the technical elegance a standout.
Source: Meeting Notes recTjbrCh4vzvpZfq (and recTz6u1ygp6Mn8yg)

Sources

  1. TradedVC — The Felton Group acquires VerifyYou and FuzeMee, raising $3.5M in equity financing. Supports round size and investor syndicate.
  2. VerifyYou (About) — Product positioning (HumanCheck, privacy-first "unique human" verification, no PII/biometrics) and target markets. Supports Competition and Thesis.
  3. MarketsandMarkets — Identity verification market $14.34B (2025) to $29.32B (2030) at 15.4% CAGR. Supports Market Size.
  4. Grand View Research — Identity verification market to $33.9B by 2030 at 16.7% CAGR. Supports Market Size.
  5. TechCrunch — Mastercard acquires Ekata for $850M (2021). Supports Exit comparable.
  6. SEON — Persona and IDV competitive landscape. Supports Competition.
  7. Blockchain Capital — Worldcoin / World ID proof-of-personhood (~38M users, Orb hardware). Supports Competition.