Duna, a startup specializing in business identity verification, has successfully raised €30 million in its Series A funding round, making it a notable player within the so-called "Stripe mafia." This funding was spearheaded by Alphabet's growth fund, CapitalG, which has a history of supporting Stripe since its Series D round in 2016.
Founded by former Stripe employees Duco Van Lanschot and David Schreiber, Duna operates out of Germany and the Netherlands. The startup aims to streamline the onboarding process for fintech companies, significantly reducing the challenges often associated with corporate ID verification and fraud prevention.
Although Stripe is not a customer of Duna, the expertise of its executives has positioned them to recognize the startup's potential. Notable angel investors include Stripe's COO Michael Coogan and former executives David Singleton and Claire Hughes Johnson. Even Adyen has shown interest, with its CRCO and CFO joining as angel investors.
Van Lanschot believes that these companies are unlikely to compete directly with Duna, as the intricate controls required for business onboarding vary significantly from one company to another. Duna is targeting the long tail of enterprise clients, particularly those with limited resources for business onboarding.
The startup envisions creating a global trust infrastructure, providing a digital passport for businesses that can be reused across various platforms. This concept aims to facilitate smoother onboarding processes, similar to how individuals use their verified identity information.
CapitalG's general partner, Alex Nichols, who led the investment in Duna's Series A, emphasized the importance of network effects and the unique insights that founders bring to address industry challenges. Duna's strategy to generate its own data rather than relying on existing sources sets it apart in the KYB (Know Your Business) sector, which includes competitors like Jumio and Veriff.
Duna is already demonstrating strong business value by enabling faster and more cost-effective onboarding for corporate users. Existing investors, including Index Ventures, have reaffirmed their commitment by participating in this funding round, alongside other notable investors.
To scale effectively, Duna is focusing on specific clusters of companies that share common customers or interests, allowing for immediate value in reusing verification processes even before achieving full network effects.
Despite being a small country, the Netherlands presents significant opportunities, with major banks employing thousands in compliance roles. While Duna may not replace these jobs immediately, its AI-driven automation promises to reduce costs and enhance revenue streams.
Looking ahead, if Duna can establish itself as a foundational identity network, it could revolutionize business onboarding, akin to Amazon's one-click checkout, further solidifying its connection to Stripe.