Melbourne startup Everproof, whose platform digitises and verifies accreditations, has raised $1.5 million in a seed funding round led by Reinventure and Allectus Capital as it looks to expand its offering into the financial services market.
Launched by Hugh Krantz, Nathan Merzvinskis, and Andreas Limberopoulos in 2016, the platform allows users to store their various accreditations and qualifications online and share their profile with any organisation they work with, with Everproof’s verification system constantly ensuring that these are up to date.
As Merzvinskis, CEO of Everproof, explained, the idea came while he and his cofounders were at university, when they each had a job that required them to keep various accreditations. With the statements or certificates of accreditation printed documents, the trio found they were easy to misplace and lose track of.
“We decided to build a digital solution that could verify this information at an employee’s point of entry and then create a continuous verified protocol for them to be using on an ongoing basis moving forward,” Merzvinskis said.
The startup found early traction in the sports and recreation space after developing a way to continuously verify Working With Children checks, working with clients including Cricket Australia, Swimming Victoria, and the Australian Childhood Foundation to verify 15,000 Working With Children checks each week across 1,000 organisations.
This is the first raise Everproof has completed from established investors, having previously completed a $100,000 “friends and family” pre-seed at the start of last year. Reinventure partner Kara Frederick said in a statement the firm is “particularly excited” about its investment in Everproof due to the strong founding team and the startup’s potential to address what Reinventure sees as a multibillion-dollar market opportunity.
After completing a $1.5 million seed round, Merzvinskis has warned founders and chief executives they should be ready to put their day-to-day involvement in their startup entirely on hold during a capital raise process.
Merzvinskis tells StartupSmart the fundraising process for his company’s seed round got underway in October last year but took a lot of energy from both him and his team.
“You’ve really got to have you team behind you because if you do lose steam you can burn out and fail to capitalise on any of your early momentum,” he says.
“Be ready to put your interaction with the company on hold, and put provisions in place so it can continue to grow even with the chief executive out of the picture.”