Blockchain identity startup TransCrypts has secured $15 million in seed funding co-led by Pantera Capital and Lightspeed Faction to advance its decentralized credential verification technology. The investment round attracted participation from Alpha Edison, Motley Fool Ventures, and returning backers including Mark Cuban and Protocol Labs.
The San Francisco-based company gained significant momentum after winning CoinDesk’s Pitchfest at Consensus Hong Kong in September, earning $10,000 in tokens and strategic mentorship. Founder Zain Zaidi emphasized the platform's focus on "self-sovereign identity"—enabling individuals to maintain direct control over personal data without institutional intermediaries.
TransCrypts originated from Zaidi's personal experience with administrative failures during graduate admissions. The platform currently specializes in employment verification, allowing users to securely encrypt and share records with employers via off-chain data storage with on-chain hash verification.
With newly acquired HIPAA compliance, the company is expanding into healthcare and education sectors. This enables patients to transfer medical histories between providers and graduates to share academic credentials seamlessly.
The funding arrives amid escalating identity fraud concerns, with Americans losing $43 billion to identity theft in 2023 and deepfake scams increasing over 1,800% annually. TransCrypts already serves 4 million users and 450 enterprise clients, with new capital accelerating real-time verification tools for regulated industries.