ID Tech: Why VCs Are Still Betting On Facial Recognition After the Tech Bubble Burst

A few weeks ago, we looked at how the bursting tech bubble is affecting funding for biometrics companies in the private markets. It wasn’t pretty. Investment data and VC sentiment together painted a picture of a once-flooding stream of capital that was now starting to run dry. Executives from leading biometrics companies, meanwhile, suggested that changing market conditions would soon separate the wheat from the chaff.

The market outlook hasn’t really improved since that story was published. There is now a growing consensus that inflation and labor shortages are putting the US and other countries on track for a recession.

All that having been said, the macro-level factors driving these trends are complex, and outcomes will, to a certain extent, be nonlinear. Not every sector is going to suffer across the board, nor will every company within a struggling sector experience substantial turmoil.

On that note, it’s worth taking a moment to look specifically at what’s happening in arguably the hottest segment of the biometrics market – facial recognition – and to hear from an industry analyst who remains bullish about its prospects going forward.