Araxid Prime has secured a $12.5 million Series A funding round led jointly by Bessemer Venture Partners (BVP) and Columbia Capital (ColCap).

The new capital funds will be used to extend the company’s technology that is currently being used by leaders in healthcare and the public sector, and apply it to other industries such as retail, telecom and financial services. As part of the deal, BVP’s Kent Bennett and Columbia Capital’s Arun Gupta of will join the board of directors.

Araxid offers a SaaS-based technology for resolving linking, and privatizing disparate identities stored in one or more databases.Araxid offers a SaaS-based technology for resolving linking, and privatizing disparate identities stored in one or more databases, whether customers, partners or employees. It can be implemented as a standalone solution or plugged into existing, on-premises Master Data Management (MDM) solutions to radically improve match rates with no extra work. The Araxid technology is based on a new model for identity matching called “truth matching,” as opposed to traditional “probabilistic matching” used by the existing MDM and Master Patient Index (MPI) technologies.

“Not only is Araxid technology faster and less expensive than traditional matching technologies, it is far more accurate,” said Mark LaRow, CEO of Araxid.”Benchmark studies with very large organizations show that Araxid truth matching can achieve 98% accuracy, whereas probabilistic matching using market-leading MDM products only achieved 70% accuracy. Faster, cheaper and better is a good place to be.”

According to a wide range of independent studies, approximately 30% of personal data stored in databases suffer some discrepancies from “the truth.” The data is out of date, was mis-entered or is the result of fraud; yet this identity data is critical for accessing and sharing medical records by doctors.