US-Israeli payroll unicorn buys Tel Aviv AI cyber startup to combat fake hires

Deel, a US-Israeli payroll unicorn, agreed to acquire Tel Aviv-based deepfake detection startup Clarity for an estimated $45-50 million. The deal, Deel's 15th acquisition and first in Israel, aims to combat fake job candidates. Clarity, founded in 2022, develops software to detect deepfakes and verify identities. The acquisition will integrate Clarity's technology into Deel's platform to enhance identity verification and security.

American-Israeli payroll unicorn Deel announced on Monday its agreement to acquire Tel Aviv-based deepfake detection startup Clarity, aiming to help businesses combat the AI-driven threat of fake job candidates. The deal, estimated at $45-50 million, marks Deel's 15th acquisition and its first in Israel. Clarity, founded in late 2022 by CEO Michael Matias, CTO Natalie Fridman, and CSO Gil Avriel, develops software to detect deepfakes and verify identities, ensuring that hires are genuine and preventing bad actors from accessing sensitive systems. The startup previously collaborated with the Israeli government to authenticate sensitive video footage following the October 7, 2023 attack. Clarity has raised $16 million from investors including Walden Catalyst Ventures and Bessemer Venture Partners. As part of the acquisition, Clarity's technology and engineering team will join Deel to build in-house identity and security tools, from pre-hire biometric verification to secure employee access management. Deel, founded in 2019 by Alex Bouaziz and Shuo Wan, provides a global payroll and compliance platform for over 40,000 businesses in more than 150 countries, with a valuation of about $17 billion. The acquisition addresses the growing threat of employment fraud, with Gartner predicting that by 2028, one in four job applications will be fake.