Zero-Knowledge Startup Self Bridges Privacy-Compliance Gap with $9M Raise, Gamified Verification

Zero-Knowledge Identity Startup Self raises $9M, launches points program to drive adoption

Self, a zero-knowledge identity protocol integrated by major players like Google (GOOG) and Aave, announced Nov. 13 that it secured $9 million in seed funding and introduced a points-based rewards program to incentivize on-chain identity verification. The round was led by Greenfield Capital, SoftBank's Startup Capital Ventures x SBI Fund, and Spearhead VC, with participation from angel investors including Casey Neistat, Sreeram Kannan of EigenLayer, and Sandeep Nailwal of Polygon.

The startup's platform leverages zero-knowledge proofs (ZKPs) and verifiable credentials to enable privacy-preserving identity verification. Users can confirm attributes such as age or uniqueness without exposing sensitive personal data, a critical feature for applications ranging from Sybil-resistant airdrops to OFAC-compliant token distributions. The protocol supports verification through biometric passports, national IDs, India's Aadhaar system, and mobile onboarding via Self Connect.

The new points program rewards users for completing identity verification and interacting with partner platforms. Earnings can be expanded as future integrations grow, according to the press release. This initiative aims to accelerate adoption of on-chain verification, addressing a key challenge in blockchain ecosystems where privacy and compliance often conflict.

Self's technology has already been adopted by Google, Aave, and Velodrome, demonstrating its utility in both decentralized finance (DeFi) and enterprise contexts. The startup positions itself as a bridge between Web3's privacy demands and real-world identity infrastructure, offering solutions that align with regulatory frameworks without compromising user anonymity.

The $9 million raise follows a surge in interest for ZKP-based solutions, driven by growing demand for scalable privacy tools in blockchain. Investors highlighted the protocol's potential to streamline identity verification while mitigating risks of data breaches. "Zero-knowledge proofs are redefining trust in digital systems," said a spokesperson for one of the lead investors, though specific comments were not disclosed in the provided materials.

With the funding, Self plans to expand its platform's capabilities and integrate with additional partners. The points program underscores its strategy to gamify verification processes, encouraging broader participation in decentralized identity networks. As blockchain adoption matures, solutions like Self's could play a pivotal role in balancing compliance requirements with user privacy-a challenge that has long hindered mainstream crypto adoption.