The Kyckr Ltd (ASX: KYK) share price is up an incredible 85 per cent today after the tech start-up revealed, Richard White, the CEO of Wisetech Global Ltd (ASX: WTC) has taken a 19.6% stake in the group at 6.6 cents per share.
In total Kyckr raised $5.2 million via the placement of 78.35 million shares and raised another $3.1 million on September 13 via the issue of 46.1 million shares.
Kyckr is in the know your client (KYC) technology space and provides services to help large global enterprises meet their KYC obligations owed to regulators in making sure they properly identify end clients.
The space is heating up as large consumer-facing businesses are looking to save money and meet increasingly onerous KYC obligations via new technology or digital bridges.
Another hot company in the tech-facing KYC or anti-money laundering space is iSignthis Ltd (ASX: ISX). Its shares have rocketed 500% over the past year from 15 cents to 90 cents and even hit a high of $1.76 over the last month.
For fiscal 2019 Kyckr posted a net loss of $6.12 million on revenue of $2.2 million.
Therefore while Richard White has confidence in the business it's worth noting he only paid 6.6 cents per share versus today's price of 19.5 cents.
Mr White is also now a billionaire thanks to his stake in Wisetech, with a 19.6% holding in Kyckr just a tiny fraction of his net worth.
