Validated ACV
$100K
Deel contract today — single customer, expanding
Board update
May 2026
Where we stand
Capital & runway
Cash on hand
$3.1M
As of April 30, 2026
Monthly burn
$350K
Q1 2026 average
~⅔ R&D · ~⅙ Sales · ~⅙ G&A
~⅔ R&D · ~⅙ Sales · ~⅙ G&A
Runway
Jan '27
At current pace
Recommendation
Scenario A · Maintain pace
Hold burn at $350K/mo through the M&A process
Keep the team and product intact. Run the process from a position of strength. Decision gate at next board meeting.
Scenario B · Cut aggressively
Reduce to ~$200K/mo, extend into mid-2027
Buys time but slows M&A momentum and signals distress to acquirers mid-process.
Clarity · Board update
02 / 09
Production validation
Deel in production
Live fraud detection at the world's largest remote-payroll platform. Responsible for a pipeline of 1M+ candidates.
300+ hires verified
Through the full multi-layer pipeline: IDV, deepfake, biometric, social, risk model.
13+ countries
USCanadaUKIndia
FranceGermanySpainItaly
+5 more
Relationship arc
Working with
Feb 2025
Exploring what it would look like to implement deepfake detection for Deel
Q3 2025
Deel contacts us to discuss the hiring-fraud use case
Jan 2026
Design-partner contract signed, integration begins
March 2026 · Live
In production across 13+ countries; CISO, CTO & Head of TA signed off on every hire
Clarity · Board update
03 / 09
What the product is pulling us into
From hiring fraud to human verification
Deel is exploring extending the use case beyond hiring. Same identity stack, new application contexts.
The identity stack
IDV
Deepfake
Biometric
Social
AI risk model
Same stack · different application contexts
Live
Hiring fraud, end-to-end
Deel · in production
Interview and offer-stage verification across 13+ countries.
300+ hires verified
Exploring
EOR account & address changes
Deel · CISO-initiated, scoping
Automated human verification at sensitive support moments. Deel asked, we did not pitch.
10K+ tickets / yr
Inbound
IT help-desk verification
NFL & large enterprises
Social-engineering hardening at password-reset and access-recovery moments.
Signal, not pipeline
Inbound
Sensitive access & contractor onboarding
Enterprise inbound
Confirming identity at every moment a person touches money, hardware, or privileged systems.
Signal, not pipeline
Clarity · Board update
04 / 09
Cost to serve, falling
Unit economics
Analyst time is down 6x and cost to serve Deel is down ~42% between Q1 and Q2, with a clear path further down.
Annualized cost to serve · Deel
Analyst time per case
30 min
→
5 min
Confidence-scored AI triage replaces most manual review. The remaining 5 minutes is judgment work on the cases that warrant it.
What's behind the curve
Proprietary deepfake detection (video + audio), biometric comparison, and an AI risk model, all trained on real hiring-fraud attacks at production scale. Not cost cutting. Engineering.
Clarity · Board update
05 / 09
37 enterprise conversations · 12 months
Market learnings
CISOs want this. Pricing validated at $100–150K. But three forces made direct sales unviable at our stage.
01
Hiring freezes hit the pipeline
Companies excited about hiring fraud suddenly had bigger problems.
Atlassian: planned 2,000 hires → cut 1,200 weeks after we engaged. ServiceNow: closed 300-person Israel office overnight.
02
CISO priorities shifted to agentic AI
The world moved from "protect my hiring process" to "manage AI agents my employees are running."
Real problem. Dropped on the priority stack between Nov–Dec and today.
03
Dual-stakeholder buying is structurally slow
Every deal needs CISO (budget) and HR (candidate experience). Two sequential approvals, not one.
12–18 month enterprise cycles. Deel took 14 months and required an actual attack to close.
The insight
Demand is validated. The channel is wrong. A partner that already owns the HR relationship collapses an 18-month cycle to weeks.
Clarity · Board update
06 / 09
Distribution through acquisition
Path forward
We have technology that works in production and a team with deep fraud expertise. We need distribution, and a structured 2–3 month process to find the right partner.
Tier 1 · Background check
Highest strategic fit
Own the HR relationship. Clarity sits as the next-generation security layer on top of existing BGC infrastructure.
First Advantage
Active deal discussions with Checkr
CPO & Corp Dev aligned · CEO leaning yes
Tier 2 · Identity verification
Adjacent extension
Already competing with us in RFPs. Acquiring Clarity moves them from static ID checks to live human verification.
Clear
Entrust
Warm conversations. Strong product-fit signal in early calls.
Tier 3 · Platforms
Deeper relationships
Existing customer footprint or ATS distribution. Includes inbound from smaller BGCs.
ATS players
Red Violet
31 enriched dossiers across all tiers.
Clarity · Board update
07 / 09
Why this works for Checkr
A net-new $500M ARR business inside Checkr's existing base.
Clarity isn't a feature Checkr adds. It's a second product line — sold to a different buyer, paid for out of a different budget — that runs on the customer relationships Checkr already has.
×
5% of Checkr's base
5,000
Of ~100K mid-market & enterprise customers
=
Net-new ARR
$500M
Incremental to Checkr's BGC line — not a substitution
Two budgets · not one
Sold to the CISO, not to HR.
Checkr's BGC line is HR-budgeted and price-pressured. Clarity sells into the CISO's fraud & identity budget — a separate P&L that pays a premium and renews on risk events.
Different buyer · different ceiling · same logo.
Already in the stack
Distribution is the only gap.
Checkr already runs onboarding for ~100K companies. Clarity needs to be present at that moment — not displace it. The integration surface is a webhook and a candidate handoff.
Zero net-new GTM motion required to test the thesis.
De-risked by Deel
The product ships under load.
300+ hires verified across 13+ countries on the Deel deployment. CISO conversations at SailPoint, Atlassian, Cloudflare, Sony confirm the budget exists and the buyer is looking.
Technology & demand are proven. What's missing is reach.
Clarity · Board update
08 / 09
Board alignment
The ask
1
Approve the budget
Maintain current burn (~$350K/mo) to run the M&A process from a position of strength. The team and product are the assets we are selling. Cutting them early devalues what we're taking to market.
2
Align on strategic direction
Focus the next 2–3 months on a strategic acquirer: BGC first, then IDV, then platforms. We considered alternatives, including dilutive capital, and believe focused M&A is the better outcome for shareholders.
3
Set the decision gate
Next board meeting (July / August 2026) is a go/no-go. Either a clear path with a strategic partner, or we reconvene on all remaining options together.
Clarity · Board update
09 / 09
Demand validation · 12 months
56 conversations. 1 paying customer.
The buyer exists. The cycle is too slow for us to fund alone — it is the right speed for a distributor with an installed base.
47100%
36%
36%
24%
1
First-call conversationsCloudflare · Adobe · MongoDB · Twilio · CrowdStrike · +4247
Sales-ops engagedAtlassian · SailPoint · SSM Health3
Deep technical talksSony · Crum & Forster · XM (Trading Point)3
Active negotiationNew Relic · Quantum TR2
Paying customerDeel — expanding from 300 hires to 500+1
Read as proof of buyer, not forecast. Enterprise security cycles run 9–12 months on their own — the same logos close in weeks behind a Checkr or BGC sales motion.
Clarity · Board update · Appendix
A1