PixelPin

Idea

Introduction

PixelPin is a cyber-security company that was nominated as one of the most innovative mobile start-ups by UKTI and SMART in January 2013. PixelPin has developed a new approach to online authentication using personal pictures to replace passwords. We are currently on the WAYRA accelerator programme.

The PixelPin solution is simple and quick to use, yet very secure. PixelPin eliminates the traditional alphanumeric password by using a picture based approach. The user chooses an image that’s personal to them (eg a photograph of their family or a memorable holiday photo). Then they choose 4 pass-points in sequence. The PixelPin process eliminates the risk of phishing, dictionary attacks and brute force hacking. We have a pending patent under application No. GB2482886. There’s also a growing body of academic research suggesting that people remember pass-points on a personal image more easily given the emotional connection evoked during the process. The user can login to web services from any device, phone, tablet or PC.

Intended impact

No matter how complex or unique, passwords are a single point of failure open to many avenues of attack: dictionary attacks, phishing and brute force hacking. But possibly the weakest link of all is human memory as we reuse, write down or simply never change passwords.

90% of passwords are vulnerable to hacking according to the Daily Telegraph yet most companies still use passwords to login their users. Consequently, companies are losing customers passwords through hackers attacking their sites. Recent examples include Twitter, LinkedIn and Yahoo.

Passwords are also a pain point in any web user experience, and companies are losing opportunities to sell, as their users forget their passwords and fail to complete purchase transactions. On mobile and tablets the user experience is even worse. Nearly 60% of mobile users say they would use their mobile phone for eCommerce if it were an easier experience.

Passwords are especially difficult for certain groups of people, eg those with dyslexia, or learning difficulties. They struggle with the complex sequences of numbers and characters that strong passwords require leaving them more exposed to online fraud.

PixelPin addresses all of theses issues:

PixelPin does not use passwords at all, but is a mathematical based solution designed to military level encryption standards. As such it’s far less vulnerable to the usual attacks made on traditional password solutions such as phishing and hacking. It eliminates dictionary attacks.

PixelPin provides a personal and engaging login experience. People remember personal pictures more easily than complex passwords. This is referred to as the Picture Superiority Effect (PSE).

The touch method on mobile devices leads to an improved mobile experience.
The mobile and tablet login no longer requires the user to enter passwords which is difficult on soft touch screen keyboards.

PixelPin is language independent, inclusive and accessible to those who struggle with entering complex sequences of numbers and letters.

Substantial accomplishments to date

Last year we raised £50K from Telefonica through a competition for their accelerator, Wayra, and £50K from a company investor. We also tried to raise £55k on Crowdcube, but unfortunately the deal was cancelled due to Telefonica's concern with the lack of a Crowdcube nominee structure. Telefonica have confirmed that the Seedrs nominee structure will address this concern.

PixelPin has a patent pending from Aug 2010, and is in the process of getting IP protection for its trademark.

In the last 6 months PixelPin has:
• Implemented 2 closed Beta trials with 2 large eCommerce companies which are providing us with marketing collateral to scale our product.
• Unlocked a Technology Strategy Board Grant worth £100,000.
• Won stands at Mobile World Congress 2013 from UKTI and Mobile Marketing
• Won a place in the pitching event at Business London Network Making It Mobile
• Been nominated as a top 20 Innovative mobile company in Jan 2013 by Smart UK

Monetisation strategy

PixelPin has researched both B2C and B2B business strategies used by competitors. In our view, although many consumers want to use PixelPin, we believe that the most efficient route to profit is through companies that have 100,000s and millions of users. This business approach also sits well with the team’s background in terms of B2B sales and delivery.

There are two aspects to delivery and price:

a. The Software as a Service model allows businesses to integrate PixelPin directly into their websites and apps. We plan to charge on a monthly per user basis as a recurring fee. We have created a self-registration mechanism for companies, to be able to integrate PixelPin with minimal technical effort.

b. Even though it is not the primary source of revenue the technology could be sold as a renewable Annual Licence + monthly maintenance fee for large enterprises such as banks or Government departments who insist on hosting PixelPin on their own servers and infrastructure.

Use of proceeds

The investment is required to continue and commercialise the trials already started, start new trials and to broaden the sales and business development activities to grow the sales pipeline. The product is being continuously improved using agile development techniques as we learn from the user trials, and we add more features.

In more detail we plan to use the funds as follows:

1. product development £70K
2. commercialisation of trials £40K
3. sales, marketing, PR initiatives and admin costs £40K