Why We Invested in CLEAR
In 1989, the second part of the blockbuster Back to the Future trilogy introduced a version of 2015 where individuals could use fingerprints to unlock doors, pay for taxis, and make donations to save broken clock towers. While fingerprint recognition technology existed when the movie was made, it would take more than 20 years before Apple’s iPhone 5S, the first iPhone with Touch ID, made it part of consumers’ everyday routines and marked a turning point for the mass adoption of biometric technology.
Prior to Apple’s introduction of Touch ID, and later Face ID, the vast majority of consumers had never engaged with any type of biometric technology. But by 2023, a decade following the introduction of the iPhone 5S, the market for biometric technologies is expected to grow to over $30Bn. This market growth is one of the many reasons why Revolution was excited to announce our investment in CLEAR last week. We believe the company has created a powerful biometric identify platform that is transforming how consumers access and experience the world by making identity verification secure and seamless. As transactions involving consumer data become increasingly digital, the need for secure identity authentication is becoming critically important in industries such as financial services, transportation, retail, and entertainment.
Today, most consumers are familiar with CLEAR’s airport security kiosks where they are a leader within the aviation vertical. However, the company is also executing on the broader vision for its network by providing member use cases in sports and entertainment, travel and hospitality, healthcare, and building access. We believe the broadening and deepening of CLEAR’s network will reinforce the value for members as it will drive the cost per use down and provide more convenience in their daily lives.
Over the last year, CLEAR has started to introduce these new experiences for members including access to the Hertz Fast Lane, which enables CLEAR members to verify their identity and rental car reservation via facial recognition in order to get through the exit gate in 30 seconds or less. They also partnered with several Major League Baseball (MLB) stadiums and Tickets.com to enable fans to use their biometrics instead of a paper or mobile ticket to enter the ballpark. And the Seattle Seahawks and Seattle Mariners have taken the partnership to the next level, enabling fans at CenturyLink Field and T-Mobile Park to buy food and drinks, including legal age validation for alcohol purchases with the tap of a finger, further reducing friction.
Critically important to CLEAR’s mission is a focus on protecting consumers’ data, and the company is actively working with regulators on this topical issue. As the deployment of biometric technology for handling and processing consumer data becomes more widespread it will pose new regulatory challenges with regard to privacy and ownership of biometric data. In order to protect consumer data, CLEAR is SAFETY Act Certified by the Department of Homeland Security and we believe that the combination of convenience and security they offer will make them a reliable and trusted leader in the category.
Given CLEAR’s growing membership base, partnerships, and government vetted IT infrastructure, we believe CLEAR has the ability to be a leading cloud-based identity authentication layer allowing biometrics to be consumers’ definitive credentials for everyday life. We are proud to be collaborating with the CLEAR team as they execute on this mission and bring previously futuristic technologies into the real world.
