“Verifying an identity is definitely more important than finding answers on Google,” Kotkas quips. “This shows you the scale and potential of this field.”

One estimate puts the size of the identity verification market at 15 billion dollars: “How do we know how large the market is?” Kotkas asks rhetorically. “We really don’t.” But there are about 250 million companies with over 20 employees worldwide, yet the majority (95%) of all transactions take place offline.

A person’s true identity might not be so crucial when selling a few books or CDs online, however, it becomes vital when we are talking about Fintech applications. For example, the providers of financial services have to be certain of the identities of those with whom they are doing business. Even if the companies themselves prefer not to know, they are legally obligated to meet anti-money-laundering legal requirements, for example.

That is where startups providing identity verification services – like Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. – come into play. “We help to create trusting client relationships in the online world,” Kotkas says.

Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. starts with the notion that the most trusted proof of somebody’s identity is their government-issued ID. One possibility would be to merely fulfil the criterion of providing an ID. A picture of an ID is uploaded and that’s that. Many companies are quite satisfied with this. But not Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. .

Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. users go through a live verification session during which they are required to take a picture of themselves and their documents, which will then be compared to their face. With the help of artificial intelligence, Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. analyses thousands of technological and behavioural variables in seconds to make sure that the person is who they claim to be and that they are not involved in any fraudulent activity. As a part of the process, Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. records a video of the verification, looks at the network and device data that the person is using and makes sure that they are conducting the procedure of their own free will, not under coercion. Of course, no technology is completely fraud-proof, but Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. claims that deceiving its software is thousands of times more expensive than the price of goods or services that could be acquired by doing so.

Obviously, Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. is not the only player in the market. Kotkas remains positive about the competition. “Since we are not the only player in the field, it shows that there is a market for the service,” he points out. “We all have our different solutions that fit different clients’ needs. Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. stands out for its highly automated product and great fraud prevention features.”

Entrepreneurial mindset from early on

Kotkas was born in Emmaste, a 200-person village on the island of Hiiumaa Second largest island in the NW of Estonia(pop.10,000). , on the west coast of Estonia. The farm on which he grew up had dozens of Hereford cows, sheep and a horse. Kotkas says that working on the farm taught him discipline – there are some jobs that you just have to do, no matter what.

Some say that Kaarel is a serial entrepreneur; Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. is his 12th business project. He was already demonstrating the first signs of his entrepreneurial mindset on Hiiumaa Second largest island in the NW of Estonia(pop.10,000). . He is a persistent guy who has always had objectives and ways to realise them. At a young age, he dreamed of a new BMX bike. At first, he approached some neighbours who came to Hiiumaa Second largest island in the NW of Estonia(pop.10,000). for weekends in the summer and proposed that he could mow their lawns for them. Later, other projects followed: making mulch and wine bottle holders, chartering sailboats, launching a platform for short-term jobs, selling power banks and so on.

Sports, windsurfing to be exact, brought him to Tallinn Tallinn, the largest city and capital of Estonia (population 440 000). because the best training facilities in Estonia were there. He enrolled in the Tallinn Tallinn, the largest city and capital of Estonia (population 440 000). Secondary School of Science, one of Estonia’s top high schools. Kotkas lauds the motivating environment the school had.

In high school, he discovered a new interest – IT. “All of the sudden I had so much free time, unlike on the farm where you always have something to do.” Kaarel does not consider himself to be a developer. “ Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. has lots of talent and there are many much better programmers than I,” he adds.

His plan was to become a doctor and study medicine at the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. . Life had other plans however, and he ended up defeating global, online identity fraud instead. He founded Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. shortly after high school and went to study business at the Estonian Business School Estonian Business School (EBS) is an Estonian higher education institution. rather than fully focus on IT.

Finding the right people is the key

Kotkas’ interest in identity verification and online fraud was triggered by a case study that he was conducting for the Estonian Fintech startup TransferWise. He likes to break things into small pieces, which is how he approached identity verification. Looking at the pieces, he found a solution.

“Everything starts with finding talented and entrepreneurial people who see an environment where making great things and taking extra steps are appreciated,” Kotkas believes. “When all these excited, talented people, already over 230 of them as we have now, are moving towards a single goal, you can make great things happen.”

When Kotkas started building the Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. team, the first employees were carefully handpicked and had wide personal networks. “We approached people I had dreamed of working with one day,” Kotkas says. “If you have such people in your team, they attract like-minded people. Over 30% of Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. ’s employees were found with the help of our teams’ personal references,” he adds.

Today, the company has people from over 34 different nations. “I really enjoy being in the office, learning new things from people who come with their novel ideas and offer a different approach,” Kotkas says. “Our ambition is to maintain this global reach,” he declares.

From banking to smart city projects

Most of Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. ’s employees are located in Tallinn Tallinn, the largest city and capital of Estonia (population 440 000). and Tartu but, last autumn, the company also opened an office in New York to be closer to its global clients. You might be in a business where most things can be solved online, but you need to have face to face meetings with your potential customers – the businesses that offer services that need to verify their end-users – you have to be close to them.

Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. started offering its services to traditional banks in Estonia, proving the concept. After that, it moved on to Fintech, marketplaces, the sharing economy and cryptofinance. However, the COVID-19 global crises accelerated digitalization and changed the IDV business a great deal. Now identity verification is an integral part of any online business that needs to verify the person at the other end of the line.

“We see a lot of possibilities and potential use cases in industries that will grow in volume over the next few years. These industries include telemedicine, education, video conferencing & communications and legaltech, just to name a few, where identity verification is going to be a vital part of the business,” Kotkas explained.

Last summer, Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. partnered up with Berlin’s main public transport company Berliner Verkehrsbetriebe (BVG) when they launched their mobility app Jelbi, which covers Berlin’s entire public transportation system including scooters, bikes, ride-hailing and car sharing, as well as traditional taxis. Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. comes in when people need to verify their identity and prove that they have a valid drivers’ licence. Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. ’s other global clients include the shared mobility provider goUrban from Vienna, the Fintech unicorn TransferWise, Mintos, Blockchain and more.

First we take Berlin, then we take Manhattan

Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. can verify people from more than 190 countries, as well as over 8000 different document types, however, a lot of the verifications come from the US and the UK, so this is where Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. sees the market potential. It is only natural that the company’s focus is moving in that direction.

“We are working more and more to be there for our US clients,” Kotkas says. “The first large-scale clients will need the most work, and later the others will follow and it should be easier.” During the last two years, he spent 8 months in the US, building a team there and working with customers. But it really does not matter where he is physically located, he has to work in both Estonian and American time zones anyhow. The price, obviously, is long working hours and not much sleep. Now, since the COVID-19 crisis hit in March, there’s been no travelling and all business has moved online.

The smallness of Estonia has been a necessary stimulus to think globally. “To fulfil our ambitions, we should verify every Estonian several times a day.”

Being from Estonia is a definite plus in IT circles, Kotkas says. Firstly, everyone knows Skype. Secondly, in the field of state e-solutions such as e-Identity, Estonia is a well-known pioneer. So, people consider it logical that a startup dealing with identity verification might come from there. “Estonia is much larger than it is physically,” he says. “It is a great opportunity but also a huge responsibility that we have to do our best to preserve.”

Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. ’s longer-term ambition is to create a single global identity for everyone on earth. “The more globally we work, the more we see that the security level of ID documents varies from country to country,” Kotkas explains. “We also see that, in many places, access to ID documents is more difficult. As we strive for a borderless world, we want to make sure that, with the help of Veriff Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. ’s identification, people get access to different digital services no matter where they are from.”

At heart, still a boy from Hiiumaa Second largest island in the NW of Estonia(pop.10,000).

You might be a global hotshot but that does not count for much among the people in Kotkas’ native Hiiumaa Second largest island in the NW of Estonia(pop.10,000). . You can only become a true native by birth on Hiiumaa Second largest island in the NW of Estonia(pop.10,000). , no others will be considered native by locals. So Kotkas is understandably a bit troubled by jokes of his relatives who tell him that they will strip him of his local’s status because he has been away for too many years. “I definitely want to go back there,” Kotkas says. “When the ferry lands at Hiiumaa Second largest island in the NW of Estonia(pop.10,000). and you drive off the ramp, your heartbeat already slows down – you feel that you are at home.”
 

What are the next generation of self-driving vehicles you are developing and how are they superior to the previous generation?

Our first-generation vehicles were largely prototypes to test the maturity and capabilities of various technologies. In the case of second-generation vehicles, we have placed a great deal of emphasis on ensuring safety and autonomy. We want to reach the level where we bring the safety person out of the vehicle to the control room, so that the vehicle can be controlled remotely. The purpose of our self-driving vehicle is to fill a gap in so-called ‘last mile transport,’ which is not covered by public transport infrastructure or where smaller vehicles are needed for shorter routes.

What makes a hydrogen car special and what are its benefits?

The use of a hydrogen fuel cell provides the advantage of very fast charging and also eliminates the need to use additional vehicles at the time of loading, which would increase the cost of the service. 

At the moment, we have two prototypes: the hydrogen fuel vehicle is developed in cooperation with the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. . At the same time, we have made a prototype solution for a car using supercapacitors with Skeleton Technologies. The idea is that this vehicle can be driven 24/7 making use of its extra fast charging capability on-the-go at the bus stops. Supercapacitors will allow us to fully charge the shuttle batteries in 11 seconds. It is meant to solve the problem in airports and other service terminals where the need for continued transportation never ends.

A traditional electric-powered vehicle can operate up to 8 hours, but that may not be enough to do a 12-hour shift. It takes up to a few hours to fully charge the traditional battery pack. That pauses the operation or creates a need to run an additional vehicle. Therefore, in some places in the future, a vehicle running on hydrogen and again on a supercapacitor will be better suited for use.

What is needed for self-driving vehicles to become more widely used?

The most important thing is to reach the level of technical capability where there is no need for a safety person in the vehicle. A real economic advantage arises when it is possible to operate several vehicles at the same time from a control room that could be located anywhere.

It is also important to achieve production capacity that will reduce costs. Once in mass production, the unit price would become much cheaper and the end customer could use it profitably without having to hire an operator. In June this year, our self-driving vehicle was recognised by the Road Administration as a street-legal car, and it is now possible to operate it on Estonian and European roads.

Please describe your cooperation with the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. ?

The cooperation with the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. arose from the desire to find a real application for the unique solutions developed in the laboratory. Together with the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. , we’ll manufacture a prototype of a self-driving hydrogen vehicle where we combine the hydrogen fuel cells developed and manufactured at the university with a vehicle developed by Auve Tech. 

For the university, this is a great opportunity for research and we can see whether or not we can get this hydrogen-based system in vehicles on a daily basis. Our hopes are high and things are moving forward at full speed.

And you also cooperate with Tallinn University Tallinn University is an Estonian higher education institution. of Technology?

Auve Tech grew out of a cooperation project with Tallinn University Tallinn University is an Estonian higher education institution. of Technology that started in 2017, within the framework of which the first prototype of a self-driving vehicle was made to celebrate the 100th birthday of the university. Now we are part of a consortium with the University of Technology in the Horizon 2020 FABULOS project. We are in the last phase of this. Our first vehicle operation in Tallinn’s Ülemiste City was a success.

What are the results of tests in Iseauto in Ülemiste City?

We started with test drives in the university’s campus and operating in Ülemiste was a valuable experience that has led us to develop rapidly. It was a very difficult route with constant traffic and a changing environment – complex intersections with heavy traffic, many manoeuvres, many different objects and obstacles to watch for, from scooters and bicycles to cats and dogs. 

We made a technological leap forward while operating there. It is important to go through as difficult situations as possible with the vehicle, so that it is possible to step back from there later. Due to the fact that our development team is also located in Tallinn, it was very good opportunity for direct communication between the teams in order to continuously improve the process.

Have you found partners elsewhere? And if so, what is the cooperation about?

The main partners are currently from Finland, Germany and the USA. Much of the cooperation is with operating companies, thanks to which it is possible to involve our vehicles in various international pilot projects in countries whose legislation or day-to-day work we do not yet understand so well. For example, our buses started operating in Tampere, Finland under the operating company Roboride. We also have technological partnerships with the German company Pylot, which offers us the capabilities needed to control a vehicle remotely.

What kind of feedback have you received for Iseauto so far?

Passenger feedback has been largely positive. However, most uses today are still a one-time exploration, and as this is a very innovative technology that many are experiencing for the first time, the consumer experience is also very entertaining. We are preparing a longer project where the vehicle would become a part of everyday traffic for people. If a customer uses an Iseauto every day to travel their last mile to get home, for example, from a bus stop to their home or office, then we really need this feedback on the overall service.

Feedback from partners and contacts has also been positive so far. They are very surprised that we have been able to complete such a vehicle in such a short time. We have a network of contacts in almost every part of the world so that we can send vehicles there. But here it must be acknowledged that bigger proofs are yet to come, and we are currently working to ensure that.

What new knowledge has the whole enterprise provided?

It is difficult to point them out separately, but we are glad that we have been able to cooperate with various universities and several enthusiastic students. At Tallinn University Tallinn University is an Estonian higher education institution. of Technology, many smaller research papers have been developed from this project. The best fruits of this research have still been the people who have joined our team. Thanks to them, we have very good cooperation with universities.

Today, this preliminary research project has grown into Auve Tech and, from there, into a commercially usable solution. This shows that it is possible to do great things in small Estonia, and we will definitely keep an eye on all research activities, including those that have not grown directly from the Iseauto project. Such a bond in R&D shows that, through cooperating with universities, it is possible to make a very research-intensive and innovative physical machine.

Self-driving vehicles are being developed all over the world, but what are your biggest advantages?

Our strongest trump card has been that we started at the right time. Those who started seven or eight years ago have made insane investments in software and sensory systems. We started four years ago, and by that time, technology and software had become much easier and cheaper to access. The size of the initial investment did not have to be so large that it would be difficult to recoup it later.

If we talk about the vehicle then, in terms of its overall size, we have found exactly the golden path. We have competitors who make much larger self-driving vehicles, but their main disadvantage is that a large car that runs autonomously and slowly is much harder to pass and takes up a lot of space on the road. The size of our vehicle has also made it possible to use it on a larger sidewalk or pedestrian area, where it can move slowly and does not disturb the surrounding pedestrians or cyclists.

Why hydrogen?

Enn Lust, Director of the Institute of Chemistry at the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. , Professor of Physical Chemistry

The aim of the cooperation project between the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. and Auve Tech is to develop a technology that would enable the use of hydrogen fuel in passenger cars. What is the current status of this project?
When implementing the technology, we have reached medium-sized fuel cells and are assembling 3kW systems from materials made in Tartu. 

What are the biggest challenges of the project?
The biggest challenge is the very large amount of manual work that makes a fuel cell prototype expensive. We try to automate the production of a small series of electrodes as much as we have the resources to do so.

What are the main advantages of a hydrogen cell system?
The main advantage of using fuel cells and hydrogen as fuel is that they do not produce gases that are harmful to human health, such as a mixture of nitrogen oxides, a mixture of sulphur oxides, unreacted heteroaromatic organic compounds and various toxic nanoparticles. In addition, it does not produce carbon dioxide and carbon monoxide, which are so-called greenhouse gases. Thus, the use of hydrogen technology saves both the natural environment and the living environment, which is an even more important problem in densely populated settlements and garden cities (for example, certain areas of Tartu).

How did Milrem get started?

Kuldar Väärsi (KV): It all began when the bus company SEBE introduced new buses on the Tallinn Tallinn, the largest city and capital of Estonia (population 440 000). -Tartu route. This significantly reduced demand for repair services. Hence we were faced with the question of whether to close down some repair shops or to find a new line of activity for them. At the same time, the Ministry of Defence was actively searching for a private sector contractor for the repair and maintenance of their heavy machinery in order to increase the security of provision and the availability of services. The ministry also wanted to develop the national defence industry.

We won the public procurement [contract] for the repair and maintenance services provision of PASI XA armoured fighting vehicles. This was the beginning of our activities in the defence industry and we founded the company – Milrem – which additionally began to develop unmanned ground vehicles. The development work began in the autumn of 2014 and already in September 2015 we presented our Tracked Hybrid Modular Infantry System or THeMIS in London. In 2017, we split the company into two. Milworks focuses on repairs and maintenance and Milrem Robotics on robotics.

How many repair shops does Milworks have and what exactly is repaired there?

Ingvar Pärnamäe (IP): Currently we have workshops in Võru Town in the SE of Estonia(pop.13,000). , Tapa and Tallinn Tallinn, the largest city and capital of Estonia (population 440 000). . For quite some time already Milworks is not just a repair company but participates in more complex rebuilding and overhaul projects, digitalisation and projects requiring engineering know-how. It is our ambition to offer a full maintenance service in the life-cycle of military vehicles and weapon systems.
Milrem Robotics produces unmanned vehicles for both the civil and military fields. What has your development work been like?

KV: In the military field we started off with a slow (although quick enough to follow a unit on foot) and small machine – THeMIS, which drives 20 km/h and weighs 1.6 tons. On the basis of the same technology we developed the product Multiscope UGV which is meant for civilian purposes such as the fire and rescue services, mining and forestry. We are about to complete a military vehicle Type-X RCV prototype, which drives up to 80 km/h and weighs 12 tons. This armoured vehicle is meant as support for mechanised units.

If you divide our work into three levels, we first develop robotics platforms which include THeMIS, Type-X and Multiscope. On the second level are intelligent functions or autonomy machines which are capable of fulfilling tasks on their own in an off-road environment.

Thirdly we are increasingly working on systems integration. We do not just offer our customers a machine, but we solve a capability gap problem for them. Our next batch of vehicles is going to the Netherlands and those machines are equipped with weapon systems, shot detection, and command and control systems.

Hence we are increasingly a software development company. Today we work in Tallinn Tallinn, the largest city and capital of Estonia (population 440 000). and Tartu and there has been a small engineering office in Sweden for the last two years. Recently we founded a company in Finland and we are making plans to enter the Netherlands. On one hand we need to get closer to our customers, on the other hand we want to bring in know-how which doesn’t exist in Estonia from abroad.

IP: It is pivotal to keep international competence in mind, because it is the only chance to increase new industrial capabilities in Estonia. The majority shareholder of Milworks is Patria, the largest company in the Finnish defence industry, and through them we also participate in Scandinavian industrial networks.

Milrem’s strategy is to be the robotics market leader in Europe. How do you plan to achieve this?

KV: I think we already are the market leader in robotics in Europe because THeMIS is the most sold vehicle in its size category. We are represented in nine countries, seven of which are NATO members and, hopefully, we will enter two more countries this year. Our main clients are the Netherlands, Norway and the USA. It is to our advantage that we brought our product to the market earlier than others. Even in 2014-15 we were considered “weirdoes” and asked why we were doing this and who needs it. Today the competition has increased.

Our advantage is that we already sell a fifth generation vehicle and we have come up with solutions which worked well also in the extremely complicated conditions in Mali for an entire year. Also our systems have proven their quality with a very demanding client in Holland. In order to be successful in the market, we need to invest a lot in sales activity and be extremely active, not to say aggressive. We also need to closely cooperate with other potential partners in different European countries and to be able to offer complete solutions.

What are the advantages of your product in comparison to unmanned vehicles created by your competitors?

KV: In terms of technological advantages, our vehicle is designed as an electric-hybrid. Many competitors only have electricity-based vehicles, which is problematic in military use because there are not many power outlets in the forest. Therefore, the diesel generator is really advantageous. Secondly, we have a completely new and innovative approach to the architecture of the vehicle, because the entire technical unit is installed into the sides of the vehicle, leaving the central platform empty. I think that to date we are the UGV platform with the most integrated weapons systems in the world bearing our name.

In terms of operational reliability, our vehicles have driven many kilometres and worked for many hours both at the hands of our clients, as well as in tests carried out by us. In Mali, THeMIS drove over a 1000 kilometres per year whilst working for Operation Barkhane. We have nine clients in the world with whom we collaborate on product development and tactical use. Therefore the information base for making decisions is as broad as possible.

What is your cooperation with universities like?

KV: In Estonia and elsewhere the cooperation is quite intense. For example, we just completed a stage of the smart UTV development project with the University of Tartu University of Tartu - Tartu Ülikool is an Estonian higher education institute. and TalTech and we are about to start the second stage. We are also collaborating closely with TalTech on various projects, for example on the 6x6 armoured fighting vehicles. With the universities of Helsinki and Aalto we are discussing how to use their know-how in the next stages of development of our autonomous AI. The same issue is being discussed with the University of Eindhoven in the Netherlands.

How did the Corona crisis influenced the activities of Milrem and Milworks?

IP: It hasn’t really impacted us very much, because the Defence Forces are working in any situation. We are also continuing to work on future procurements and wish to be a stable partner for the Defence Forces.

KV: Milrem has indeed felt the impact. As our customers are outside Estonia, interaction has been interrupted in the last half a year. The relations we had already established earlier are still working, but many programmes have been cancelled or postponed. We also had to adjust our budget. It is complicated to test our equipment outside Europe, although we were able to do it in Italy. At the same time we have transferred some training for our Singapore partners onto the online environment.