The counterfeit goods crisis presents a dual challenge. Luxury brands lose over $30 billion annually to fakes, while shoppers in the booming $210 billion second-hand market lack a reliable way to verify the authenticity of their purchases. Veritas aims to solve both problems with a solution that combines custom hardware and software.
The startup claims to have developed a hack-proof chip that cannot be bypassed by devices like the widely available Flipper Zero hacking tool. These chips are paired with digital certificates to verify product authenticity.
Veritas founder Luci Holland brings experience from both the technology and art worlds. She has worked in artistic mediums like mixed media painting and metal sculpture, served as a technical product manager at Tesla, and held various roles in business development and product management at tech companies and venture funds.
Holland notes that luxury brands have traditionally used physical marks and symbols for authentication. However, with rising demand, counterfeiters now produce convincing copies of these marks along with high-quality fake certificates, creating so-called superfakes.
She mentioned speaking with established luxury houses that had to stop authenticating goods in some locations because fakes had become too convincing to reliably detect. Drawing on her background, she sought a solution.
“For me, as someone with a background in design and experience in tech, I saw this problem and thought about the different ways we could solve it. I think what’s truly innovative is we’ve combined elements from both hardware and software to create a solution that helps protect brands and convey information,” Holland said.
“When I think of counterfeiting and the most iconic and legacy brands,” she added, “a lot of these brands have been around for over 100, 150 years. These brands deserve the most advanced protection to protect these designs.”
Veritas worked with designers to create a minimally disruptive chip the size of a small gem. It can be inserted even after a product is finished without compromising its integrity. The chip uses NFC technology, the same as contactless payments, allowing a user to tap a smartphone on the item for verification.
For security, the startup developed a custom coil and bridge structure. If tampering is attempted, the chip goes dormant and hides the product codes. On the software side, product information is linked to the Veritas backend, which monitors scanning behavior to prevent fraud. The company also creates a blockchain-based digital clone of the product for potential use in digital art galleries or the metaverse.
The company did not reveal its partners but stated that brands can use its software suite to get information on all chipped products, manage teams, and add product details and stories. This information can also help brands connect with their community, with some partners using it for exclusive customer invitations or early product access.
While the counterfeiting market is vast, Holland believes the industry still needs education on why robust tech solutions are necessary.
“It is shocking to see that some off-the-shelf solutions, like the NFC chips brands are using, are actually so vulnerable and could easily be bypassed. This is the one thing most people don’t know, and we want to educate the ecosystem to adopt safer solutions,” Holland said.
Veritas raised $1.75 million in pre-seed funding led by Seven Seven Six, with participation from DoorDash co-founder Stanley Tang, skincare brand Reys co-founder Gloria Zhu, and former TechCrunch editor Josh Constine. The funding will be used to expand its two-person team.
Seven Seven Six’s Alexis Ohanian said he was impressed by Holland’s combination of design taste and technological expertise. He believes brands know fake goods are a problem and are constantly seeking robust solutions.
“It’s absolutely an arms race against fake goods makers, but we’re used to fighting those and consistently winning in tech — and luxury brands need all the help they can get,” Ohanian said.