KNWN reduces the billions of dollars lost annually from fraud, hacks, breaches, and cart abandonment by enabling businesses and consumers to engage in private and secure omnichannel interactions and transactions from enrollment through every transaction on any camera-enabled device.
KNWN uses a combination of patent-pending, AI-powered unique device communication, and evolving facial biometrics to perfect the system on each individual user with every interaction and transaction.
We have production-ready APIs and completed successful alpha testing. We have one contract fully executed that will be launching by September. We are in a major Mexcian fintech marketplace called Glints/Fintstact. We have 3 additional contracts out for negotiation and a growing pipeline of business.
Identity authentication touches almost every industry in some capacity whether it be for employees or customers. The best way to look at the market size right now is from the total addressable market.
Identity and fraud prevention is expected to be a $28B market by 2023, and biometrics are expected to authenticate $2T of in-store and remote payments.
Problem or Opportunity
One of the main problems we are solving is the losses from fraud and cart abandonment as it relates to omnichannel payments. Card-not-present fraud is expected to cost retailers about $130B in revenue by 2023. While in-store payment fraud has greatly reduced retailers are losing upwards of $37B a year from long lines and bad checkout experiences.
However, identity plays an integral role in all of our day-to-day lives, whether it's traveling, entering an office building, or signing in to a website. The existing ways of authentication and protecting personal data are stale, full of friction, and vulnerable and that has led to billions of dollars lost every year by both businesses and consumers from account takeover fraud to third-party fraud, hacks, and breaches.
Businesses need to provide themselves and their customers with more private, secure and accurate identity authentication and security solution that evolves with them over time and ensures their personal information and payment data is protected without sacrificing the user experience. That's what KNWN does and the problem we solve.
Solution (product or service)
KNWN is an end-to-end identity solution that starts learning about the end-user right from enrollment. We are able to authenticate an identity from the use of government ID capture and analysis, biometric capture and analysis, and the comparison of the two. Our neural nets are immediately trained on many high-resolutions of the person and we begin to build an identity layer around the device.
Unlike most existing single-factor facial biometric solutions in the market today, KNWN has a multi-dimensional approach using unique IoT device communication. This acts as a passive first factor of authentication creating an electronic signature of the person based on their devices(s) (i.e. smartphone, bluetooth headset, smartwatch, etc.) communicating with the merchant's device and the other devices around it. With this approach, we are eliminating privacy issues caused by geo-fencing, while perfecting and accelerating the biometric authentication and retrieval. KNWN's AIs learn more about the individual, their behaviors, and their changing physical features making KNWN smarter, faster, more accurate and secure with every interaction and transaction. These elements in combination with our proprietary liveness and anti-spoofing technologies greatly reduces the likelihood of fraud. We are built for speed and accuracy at scale with authentications and retrievals in less than a second at an average of 99.99% accuracy rate, which keeps lines moving and avoiding losses from cart abandonment.
KNWN's proprietary security fabric compresses, encrypts, fragments, and distributes the data. Our multi-signature approach combined with dynamic key handling makes the likelihood of a data hack or breach highly unlikely because it's too cost-prohibitive.
The facial biometric digital identity market is still young, especially in the United States.
The existing direct competitors that are focused on omnichannel facial authentication in the market include Clear, InCode, PopID, Fortress Identity. Each of these companies focuses on a single factor or multi-modal biometric authentication. They are not taking a multi-dimensional approach like KNWN, which can impact their ability to scale at some point in the future.
Advantages or differentiators
Our key technology differentiators are the use of AI to perfect and accelerate biometrics through the use of our patent-pending IoT communication, as well as our use of patent-pending evolving biometrics.
Most biometric companies are solving a 1-to-1 problem, using single factor biometrics, and are tethering the data to the mobile device, which is rendered useless if lost, stolen, broken, or dead. It also marginalizes half the world's population. KNWN is completely device neutral. Instead of relying on the mobile device to be the sole vehicle of identity and payment data, we use it as an element of their identity, just like their other smart and connected devices become elements of their identity. This acts a first passive factor of authentication, Our system continues to learn and refine itself on each user becoming smarter, faster, more accurate and secure with each use discounting the likelihood of spoofing, fraud, and abuse.
Enrollment revenue ranges between $0.50-$2.00 depending on what elements a customer needs and their projected volumes.
KNWN charges a SaaS fee of $0.10 per active user on file that tiers down based on volume.
KNWN also charges $0.02 per API call that tiers down based on volume.
KNWN has a B2B and B2B2C sales and marketing approach. Our initial customers are through the executive and advisory team's existing relationships, which has led to a growing pipeline of opportunities across different verticals which includes private aviation, payments, fintech, and hospitality.
Once we've proven product-market fit in one or two of those sectors we will be deploying inbound and outbound sales and marketing strategies to further entrench ourselves in those markets.
Money will be spent on
Monies raised will go towards further enhancing the product, hiring additional developers, and doing inbound and outbound sales and marketing.
Offer for investor
We've primarily been in conversations regarding a convertible note with a 20% discount to the next round. However, for the right investor or larger check amount we are open to the discussion of a priced round or cap on the note.