Company & Investment Overview

The Problem

Every regulated business is stuck in the same broken cycle: each new customer must verify their identity from scratch at every service provider, every single time. No verification carries forward. No data is reused. The entire industry runs on disposable checks that expire the moment they are completed.

This broken cycle creates three compounding costs that grow worse with every new customer, market, and integration:

• Customer Friction: Users re-submit the same documents they have already verified elsewhere, over and over. Onboarding abandonment rises, conversion slows, and the experience signals to users that no one in the system trusts anyone else's work
• Operational Drag: Compliance teams drown in manual reviews, repetitive checks, and vendor management. For every dollar a company spends on KYC software, it spends six more on the compliance operations to act on the results. Headcount scales linearly with volume, and every new market multiplies the burden
• Data Liability: Every vendor in the stack stores another copy of raw customer PII in a centralized database. Each integration multiplies the security attack surface and regulatory exposure. One breach at any vendor in the chain compromises the customer

The root cause is structural: legacy KYC vendors sell a disposable check. The check has no memory, no portability, and no operational layer. Companies buy the check, then build (or outsource) everything else themselves.

The Zyphe Solution

Zyphe replaces the disposable-check model with two layers that compound together: reusable identity infrastructure underneath and Compliance-as-a-Service on top.

• Portable Identity (Foundation): Users verify once through Zyphe, then carry their credentials across providers with consent. Verification results persist, travel with the user, and can be accepted by any counterparty in the network without re-running checks. Every user who enters the network makes every future verification faster and cheaper
• User-Owned Vaults: Documents, liveness results, AML data, and risk signals live in encrypted, user-owned vaults instead of centralized vendor databases. Privacy-first architecture enables portability and compliance without copying raw PII
• Compliance-as-a-Service (Monetization & Wedge): CaaS is how we enter the account and how we generate revenue. AI agents do the compliance work that companies currently outsource to $150-300/hr boutique firms or staff with 10-20 analyst teams. Manual reviews, AML screening, fraud detection, and case resolution are handled by trained agents with full auditability. Companies outsource their compliance operations to Zyphe instead of buying another tool and doing the work themselves

Legacy KYC vendors sell you a disposable check. Zyphe gives your users a portable identity and your compliance team an AI workforce so verification happens once, travels everywhere, and manual reviews resolve themselves.

Company Facts

• Founded: 2025 - Delaware C-Corp (US)
• Stage: Pre-seed
• Total Raised: $1.6M to date
• Team: Lean, globally distributed - 5 senior engineers + leadership
• Website: zyphe.com  |  Docs: docs.zyphe.com

Competitive Positioning

Technical Infrastructure

• Encryption & Credentials: Encrypted user vaults and verifiable credential issuance (PoC complete, production deployment in progress)
• Engineering: 5 senior engineers; actively hiring Senior AI Engineer, DevSecOps, and Director of Engineering
• Process: Fully migrated to Linear for project management; modern CI/CD pipeline

Key Metrics (Q1 2026)

Go-to-Market Strategy

Zyphe has evolved to a founder-led, enterprise-focused GTM motion after testing and sunsetting lower-performing channels. The current strategy focuses on high-conversion activities:

• Founder-led sales: Direct engagement with enterprise decision-makers, supported by high-signal events (Token2049, Stripe Sessions) as top ROI channel
• SEO-driven inbound: Organic traffic scaled 20x in 4 months. After rebuilding the SEO team, the channel is now converting: 6 inbound demo requests in the last 4 weeks (vs. 0 in the prior 12 months), with 1 closed to contract in under a week
• Strategic partnerships: Warm introductions through investors, partners, and advisors with highest conversion rates
• ICP: Regulated companies with existing KYC volume, internal compliance staff, operating across multiple geographies where manual reviews are a bottleneck and liability is expensive

Sales Motion

• Enterprise sales cycle: ~9–18 months
• Mid-market closing velocity: ~45–90 days
• Best channels: Founder intros, high-signal events, SEO-driven inbound

Why This Round, Why Yzi Labs

Zyphe is raising a strategic round to take proven product-market fit into its next growth phase. We have 22 signed customers, $2.1M in contracted revenue, and a product that wins every competitive deal it enters. What we need now is the right capital partner to unlock the commercial path to $10M+ ARR.

Yzi Labs is the ideal lead because your portfolio and network represent that path directly. Every exchange, wallet, and regulated entity in the Yzi Labs ecosystem needs compliant KYC/AML infrastructure. Warm introductions from a trusted investor convert faster and at higher deal sizes than any other channel we have tested. With Yzi Labs as a commercial partner, we project enough qualified demand within your network alone to reach $10M+ ARR within 12 months.

• Why now: The product is production-ready, the unit economics work, and regulatory tailwinds (MiCA, institutional crypto adoption) are creating urgent demand for exactly the infrastructure we provide. This round accelerates us into a market window that is opening now
• Why Yzi Labs: Your portfolio companies are our exact ICP. Your endorsement removes the biggest friction in enterprise compliance sales: trust. Your network is not general exposure; it is a direct commercial pipeline
• What this round unlocks: Dedicated enterprise sales capacity, expanded AI agent capabilities, and the commercial partnership structure to convert Yzi Labs portfolio demand into contracted revenue at speed

Unit Economics & Revenue Model

• Platform Fee: $295/month platform fee + usage-based pricing that scales with compliance volume handled
• Usage-Based Credits: Per-verification charges scaling with volume
• Enterprise Custom: Volume discounts and custom SLAs for high-volume accounts
• Expansion Revenue: Customers expand into additional geographies, verification types, and compliance modules

Detailed financial projections, cap table, and P&L available under NDA.

Active Customers

Enterprise accounts    Showing select customers. Full reference list available upon NDA.

Active Pilots & POCs

In pilot or POC stage

Qualified Pipeline (Web3)

In pipeline    Enterprise and mid-market accounts in active discussions.

Banking Expansion

Cooperation contracts are being finalized with 10 European banks, representing Zyphe's entry into the traditional finance sector. This expansion validates the platform's regulatory rigor and positions Zyphe as a bridge between Web3-native compliance and traditional banking requirements.

Key Financial Services Companies

Strategic financial services names validating Zyphe's expansion into regulated payment and banking infrastructure.

System Integrators & Partners

Channel, implementation, and ecosystem partners that expand Zyphe's distribution and enterprise integration reach.

Development Phases

Two-week sprint cadence. Core platform is production-hardened; emerging AI capabilities are being built on proven infrastructure.

Near-Term Priorities (2026)

• Agentic Compliance v1: First production release of AI agents for auto-resolving manual review cases with full auditability
• Banking Integrations: Technical integration work for the 10 European banks in the pipeline
• Platform Scalability: Multi-region deployment and infrastructure hardening for enterprise SLA requirements

Reference Customers

We're happy to facilitate direct introductions to current enterprise customers for independent validation of our platform and team.

• Enterprise customer references available for compliance automation use cases
• Web3 exchange and wallet integration references
• Banking and traditional finance pilot references

Corporate Structure

• Entity: Zyphe Inc. - Delaware C-Corp (USA)
• Founded: 2025
• Registered Agent: Delaware, United States
• Stage: Pre-seed

Full corporate documents, certificate of incorporation, bylaws, and cap table available under NDA.

Intellectual Property

• Platform IP: All platform code, algorithms, and proprietary compliance models are fully owned by Zyphe Inc.
• Agentic Compliance Models: Proprietary deterministic decision models and multi-agent architecture represent core defensible IP
• Reusable Identity Architecture: Novel approach to portable, encrypted identity credentials - potential patent filings under evaluation
• Trade Secrets: Compliance agent training data, decision models, and risk scoring algorithms
• Data Moat: Every verification processed trains and improves our compliance models. As volume grows, decision accuracy increases and false positive rates drop, creating a compounding data advantage that new entrants cannot replicate without processing equivalent scale

Regulatory & Data Protection Posture

• GDPR-Native Architecture: Privacy-by-design with user-owned encrypted vaults, data minimization, and right-to-erasure built into the platform core
• eIDAS Alignment: Liveness detection and identity verification flows designed to meet eIDAS-certified security levels
• Data Residency: Multi-region deployment supports EU and global data residency requirements
• AML/CTF Screening: Real-time screening against OFAC, FATF, EU terrorist lists, and INTERPOL databases
• MiCA Ready: Platform architecture supports Markets in Crypto Assets regulation compliance for European clients

SOC 2 certification timeline and additional regulatory documentation available upon request.

Why Yzi Labs Is the Right Partner

Every exchange, wallet, and regulated entity in the Yzi Labs portfolio needs compliant KYC/KYB/AML infrastructure. Zyphe is built exactly for them. This is not a general alignment - it is a direct commercial fit.

• Portfolio as Pipeline: Yzi Labs' portfolio companies are our exact ICP. Warm introductions from a trusted investor convert faster and at higher deal sizes than any other channel. With access to the Yzi Labs network alone, we project a path to $10M+ ARR within the first year of partnership
• Ecosystem Credibility: Yzi Labs' endorsement signals trust to every Web3 company evaluating compliance vendors. Being backed by the ecosystem's most recognized investor removes the biggest friction in enterprise sales: trust
• Web3-Native Demand: Zyphe already serves exchanges, wallets, and DeFi protocols. Trust Wallet is interested to start, Binance Italy is in conversations. Yzi Labs accelerates these deals and opens dozens more like them
• AI + Compliance: Agentic compliance automation is a genuine AI-native service - deterministic decision models and multi-agent architecture represent a defensible moat that deepens with every verification processed through the network
• Regulatory Tailwinds: MiCA in Europe, evolving global crypto regulations, and increasing institutional adoption all drive urgent demand for the exact infrastructure Zyphe provides

The $10M ARR Thesis

Zyphe's current GTM proves the product sells. What limits growth is access, not product-market fit. Yzi Labs solves the access problem:

• Direct intros to portfolio exchanges, wallets, and regulated platforms that already need KYC/AML infrastructure
• Co-selling leverage - Yzi Labs' recommendation carries more weight than any outbound campaign
• Faster close cycles - trust is pre-established, reducing enterprise sales cycles from months to weeks
• Expansion revenue - once integrated, customers expand across geographies, verification types, and compliance modules

This is not a hope - it is arithmetic. The Yzi Labs network contains enough qualified demand to hit $10M+ ARR in year one with the right level of commercial partnership.

• NDA Execution: Happy to sign Yzi Labs' standard NDA to unlock deeper financial and technical materials, especially on GTM strategy, key learnings, and technology architecture
• Reference Calls: We can facilitate introductions to current enterprise customers for independent validation. Binance and Trust Wallet are available for direct outreach. Current investors are also happy to do reference calls
• Technical Deep Dive: Optional session with our CTO to walk through architecture, security model, and agentic compliance internals
• Term Sheet Discussion: Once due diligence is complete, discuss investment terms and structure