Funding will allow TokenEx to lead the future of securing digital transactions
Oklahoma City, Oklahoma, March 23, 2022 â€“ TokenEx, an industry-leading cloud tokenization provider, today announced it has raised $100 million in Series B funding from K1 Investment Management, a leading investment firm focused on high-growth enterprise software companies globally. TokenEx will use the new funding to invest further in its product, customer service, and account management teams as well as scaling its global operations.
â€œWe couldnâ€™t be more excited to partner with K1 to continue our journey as the category leader in securing the worldâ€™s most sensitive data,â€ said Alex Pezold, Founder and CEO, TokenEx. â€œWith the rise in data breaches, privacy regulations, and digital payment volumes, the need for our solution has increased exponentiallyâ€”this round of funding will allow us to take our technology to new heights and create a world-class experience for all our customers.â€
Founded by payment security experts in 2010, TokenEx partners with its clients to secure their most sensitive data, typically cardholder data for card-not-present transactions. TokenEx collects data via API calls or managed file transfers before it enters an organizationâ€™s internal systems and then exchanges that sensitive data for nonsensitive data called â€œtokens.â€ These tokens can be sent to any API endpoint, creating a layer of abstraction that safeguards against cyber and ransomware attacks, while also increasing freedom, control, and interoperability for customers.
â€œAlex and the rest of the team at TokenEx play a pivotal role in our success,â€ said Chris Henneman, Chief Revenue Officer, Nexio. â€œOur platform is designed to help businesses manage the chaos of payments, and thanks to TokenEx, we can provide a secure and compliant infrastructure for processing sensitive payment data. As a result, our clients can safely control their payments strategies to create better business outcomes.â€
TokenEx experienced record growth in 2021 on the heels of increasing data breaches and digital payment transactions. According to a study by cybersecurity company Tenable, the total number of records exposed to bad actors in 2021 surpassed 40 billion, a 78% increase over 2020. Furthermore, the rise in card-not-present transactions, which has been further propelled by Covid-19, is creating an urgent need to secure digital payments.
â€œTokenExâ€™s mission of protecting the worldâ€™s most sensitive data from theft is one that only grows more essential every day,â€ said Tarun Jain, Principal, K1 Investment Management. â€œAs digital transactions become the preferred method of payment, we are excited by the value and utility of TokenExâ€™s platform to help process payments reliably and securely. We are thrilled to partner with the TokenEx team to capture this massive market opportunity.â€
Founded in 2010, TokenEx is a leading cloud tokenization provider committed to helping organizations safely and compliantly accept, store, and transmit sensitive data. Its industry-leading solution for data protection can secure and desensitize any structured data element to reduce risk, streamline operations, and enable its clients’ most critical business processes. For more information, visit TokenEx.com or contact firstname.lastname@example.org directly with any questions about the company or its platform.
K1 is a global investment firm that builds category-leading enterprise software companies. K1 partners with strong management teams of high-growth technology businesses to help them achieve successful outcomes. With over 120 professionals, K1 and its operating affiliate, K1 Operations LLC, change industry landscapes with operationally focused growth strategies designed to rapidly scale portfolio companies. Since inception of the firm, K1 has partnered with over 180 enterprise software companies including industry leaders such as Apttus, Buildium, Checkmarx, Clarizen, ControlUp, Emburse, FMG Suite, Granicus, IronScales, Litera Microsystems, Onit, Rave Mobile Safety, RFPIO, Smarsh, WorkForce Software and Zapproved. For more information, visit k1capital.com and follow on LinkedIn.