For indie developers building their games on their own, regulatory compliance is probably not a top priority. You still need to write the code, design the mechanics, and test and test your game to make sure it's actually fun to play. But compliance is often not an option, especially when it comes to child safety, and the task gets harder every year as regulations around the world evolve quickly and frequently.
A startup called k-ID wants to smooth out compliance efforts, raising $45 million in a Series A round to build a platform that makes it easier for game developers to comply with child safety and data privacy regulations.
The funding round was led by the startup's existing investors Andreessen Horowitz and Lightspeed Venture Partners, with participation from Okta, Z Venture Capital (owned by Z Holdings, a joint venture between SoftBank and Naver), and existing backers Convoy Ventures and Tirta Ventures. The round brings the company's total funding to $51 million.
“The problem our technology solves – what can kids do when they enter the online world – is solved manually today by lawyers and engineers,” k-ID CEO and co-founder Kieran Donovan told TechCrunch. Donovan previously worked as a partner at law firm Latham & Watkins and has advised technology and gaming companies for more than a decade. “I've spent the majority of the last few years supporting game publishers building youth experiences and family-friendly tools to navigate regulatory complexities.”
The funding comes at a critical time for the gaming industry: As more young people play internet-connected games, developers and publishers cater to a global audience and must devote more time and effort to ensuring their games do not violate local laws.
k-ID gives game developers and publishers access to its solutions via APIs or, in the case of mobile, an SDK (software development kit). The company's products essentially connect to the game and help developers quickly customize it to meet compliance requirements for each market.
Donovan said k-ID's software offers a single sign-on for kids, giving parents a way to scan a QR code to unlock in-game features that require parental approval. It can also automatically customize the elements of games a child can access based on local regulations and cultural nuances. “For parents, it's one unified console where they can manage and engage with all of their child's gaming,” Donovan said. There's also the option for parents to approve or deny access to AI content or tools their child may encounter in-game.
In addition to its Series A, k-ID also announced a partnership with the ESRB for its Privacy Certified program, which will allow the startup's customers to earn the ESRB Privacy Certified Kids seal.
“There is perhaps no more complex area today than regulating children and teens online – there's so much to deal with: chat, algorithms, content, loot boxes and even the definition of a child (which can range from under seven to under 21 depending on the country),” Donovan said.