Views from the investment desk: Konfir exit proves lightning can strike twice

If you want to build a successful business-to-business (B2B) company, it helps to make yourself indispensable. Identify a workflow process most businesses find painfully slow, frustrating and inefficient – and find a way to remove that friction or bottleneck – and not only will companies gladly pay you for making their lives easier, but some will also take a keen interest in acquiring you.

It sounds simple in theory, but it’s still something of a rarity. Your company has to solve a problem that is both universal enough to be a problem and narrow enough that few can solve it by themselves. Few early-stage companies reach that level of product-market fit, or perform well enough to be seen as standout acquisition candidates.

So, when a company manages to get this blend right, it deserves applause and admiration. Step forward Konfir, a digital verification company that until very recently was held within the Triple Point Venture VCT portfolio, and has recently been acquired by the global data and technology powerhouse Experian.

What does Konfir do?

Konfir solves a fairly specific but widespread problem: every time a person changes jobs, moves house, or has to prove their income to apply for a loan or a mortgage, they must hunt around for bits of paper that support their application. This could include bank statements, payslips or references from former employers dating back years. It can be a fragmented, time consuming and unreliable process that can often lead to delays in hiring, finding tenants or making lending decisions. In other words, verifying employment and income information is a business necessity, but it’s also a headache for almost everyone involved.

Konfir carved a niche by offering seamless digital verification for employers, lenders and landlords, as well as background screening and verification providers, by combining Open Banking, payroll and HMRC data to build a comprehensive picture of a person’s financial and employment history. Instead of placing the burden of proof on the individual, they give their consent for all the information to be gathered digitally. It also helps organisations to carry out compliance and fraud checks, assess risk accurately and reach decisions quickly, after getting the complete picture.

The Ventures view

People often think that in Ventures, we invest in businesses. But the reality is that, in most cases, we invest in people. We first got to know Konfir through its founder and CEO, Chris Milligan. Chris is no stranger to starting and selling his own companies – he previously founded and sold Adepto, a skills-based talent software company which we first invested in back in 2019.

Chris is the kind of serial entrepreneur you love to keep an eye on and to stay in touch with, to hear about the next big thing they are working on. When he set out his vision for Konfir to us, his clarity and passion were unmistakeable. We recognised the company’s potential early, which is why we led Konfir’s pre-seed funding round in March 2022 and made a follow-on investment in May 2023, when Konfir held its seed stage funding round.

The sale to Experian

For all our portfolio companies, we work on the basis that the best investments are companies that are so good at what they do that larger firms desperately want to acquire them. In Experian’s case, the relationship began as a commercial partnership, with Experian’s Work Report payroll data embedded into Konfir’s verification journeys. Experian was also a client, using Konfir’s platform for their own background checking and verification journeys. For them, moving from being a client, to an investor, and then ultimately to an acquirer, felt like a natural evolution.

“Lightning can strike twice”

Chris now holds a unique accolade in that he is the first person to have successfully sold two companies with backing from Triple Point, proof that lightning can indeed strike twice. This also marks the second Triple Point portfolio company to have been acquired by a household name, after Credit Kudos was sold to Apple in 2022. These exits underline a very simple point: if you meet exceptional people building businesses that solve real problems, back them early, and then give them the space to grow. Do it well, and they might one day have global brands knocking at their door.

Important information

This article is an advertisement for the purposes of the Prospectus Regulation Rules and is not the prospectus. Potential investors should refer to the information within the Prospectus which is available via the website. Potential investors must only subscribe for, or purchase shares based on information contained within it. The Triple Point Venture VCT invests in smaller companies, which can involve a higher degree of risk than investing in companies listed on an exchange. Investors’ capital is at risk and dividends are not guaranteed. Past performance and forecasts are not a reliable indicator of future performance. Tax treatment depends on the individual circumstances of each client and is subject to change. Tax reliefs depend on the VCT maintaining its qualifying status. This article has been approved by Triple Point Administration LLP, which is authorised and regulated by the Financial Conduct Authority.