Europe’s identity verification startups are booming. Here’s what we’ve learned helping them stand out

If the number of investors, journalists and analysts looking at identity verification startups is anything to go by, the sector has officially reached its next phase. The ID verification (IDV) market is surging rapidly, projected to reach $19 billion globally this year and grow by 55% by 2030 as businesses tackle escalating digital risks.

This week, Sifted asked investors across Europe to nominate the IDV, KYC, KYB and AML startups they believe are the ones to watch in 2026. That’s another sign that identity verification is no longer simply a compliance category – it’s becoming one of Europe’s hottest investment sectors.

That might be good news for founders but it will make differentiation much harder.

Everyone has the same story

Over the past few years we’ve helped companies including First AML and Credas build their profile in the UK market. One challenge came up repeatedly and that is that almost every company says the same thing: faster onboarding, simplification of compliance, use of AI, great customer experience.

For customers, those messages matter. But for journalists and investors, they’re not enough to stand out. As the market becomes more crowded, simply having a better product won’t guarantee attention. The companies that break through tell a bigger story.

Here are three lessons we’ve learned from working with IDV companies:

1. Don’t lead with compliance, lead with why it matters

Compliance is the outcome, not the story. The stories that generate attention are about the wider market forces behind it: AI-powered fraud, changing AML regulations, or the hidden cost of poor onboarding.

When we launched First AML into the UK, the conversation wasn’t simply about AML software. It was about the growing challenge of financial crime, sanctions and helping regulated businesses understand who they’re really doing business with. That broader narrative generated extensive national and trade coverage because it mattered to the wider market – not just compliance teams.

2. Become known for an issue, not a product

The companies that build lasting profiles own a conversation rather than a feature. With Credas, the focus extended beyond IDV to digital identity, property fraud, reusable compliance and regulatory change. That allowed the business to contribute expert commentary throughout the year, building recognition across business, fintech and property media rather than relying on occasional product news.

The best thought leadership answers the question: What industry problem do we want to become famous for solving?

3. Insight beats product messaging every time

Investors and journalists are looking for evidence of leadership, not marketing copy. 

The strongest campaigns combine original research, customer data, expert opinion and commentary on breaking news to demonstrate market leadership. As more startups enter IDV, founders who can explain where the market is heading – not just what their platform does – will find it much easier to earn attention.

Funding follows visibility

Sifted’s latest call to VCs for Europe’s most exciting IDV startups is another reminder that this market has reached a tipping point, with investors and journalists paying attention. The question is whether they’re paying attention to your company.

The businesses that become category leaders won’t necessarily be those with the biggest marketing budgets. They’ll be the ones consistently shaping the conversation with timely insight, evidence and expertise.

As Europe’s IDV market becomes more competitive, visibility is becoming every bit as important as innovation.

If you’re one of those startups looking to stand out from the crowd, email hello@thecommsco.com.