Executive Summary

The Opportunity

The global age verification market stands at $2.22 billion USD in 2025 and is projected to reach $5 billion USD by 2033 (CAGR 15%). However, current solutions create a fundamental conflict: they achieve compliance at the cost of user privacy, leading to massive user abandonment.

The Problem

Current age verification solutions demand extensive personal information:

• • Full legal names
• • Residential addresses
• • Government-issued photo identification
• • Facial recognition biometric captures
• • Credit card details

This creates three critical failures:

1. Privacy Violation: Users must surrender anonymity to access age-restricted content
2. Security Risk: Centralized PII databases create lucrative targets for cybercriminals
3. Market Resistance: Privacy-conscious users abandon compliant platforms entirely

Source: Identity Theft Resource Center, 2025 Data Breach Report

The Lockette Solution

Lockette represents a fundamental architectural reimagining of age verification. We accomplish what current solutions claim is impossible:

Zero PII Storage Architecture

The User Experience

Initial Verification (One-Time):

1. User downloads Lockette app (iOS/Android)
2. User visits age-restricted physical location (bar, dispensary, liquor store)
3. Validator scans user's ID per normal procedures
4. User shows QR code from app
5. Validator scans QR code → user validated
6. Total time: <60 seconds

Return Verification (Every Future Visit):

1. User visits age-restricted website
2. Site prompts "Verify with Lockette"
3. User approves with biometric/PIN (on-device)
4. Site receives boolean: VERIFIED or NOT VERIFIED
5. Total time: <2 seconds

Privacy preserved: 100%

Competitive Advantage

Current competitors (Yoti, Onfido, Veriff, AU10TIX) operate on a data collection business model:

• They monetize by selling identity verification services
• Revenue depends on processing personal information
• Regulatory compliance requires storing audit trails
• Architectural incentive to collect and retain data

Lockette operates on a privacy-as-infrastructure model:

• Revenue from customer API usage (per-verification fees)
• Zero dependency on personal data
• Compliance through mathematical proof of zero PII storage
• Architectural incentive to minimize data collection

This difference is not incremental—it is categorical.

Competitors cannot replicate Lockette's architecture without abandoning their entire business model and rebuilding from first principles.

Market Opportunity

Four high-value markets demonstrate acute privacy concerns:

Business Model

Revenue Streams

Investment Highlights

1. Massive, Growing Market: $2.22B → $5B (2025-2033)
2. Proven User Demand: 47% traffic abandonment demonstrates acute privacy pain point
3. Defensible Technology: Zero-PII architecture cannot be replicated without full system redesign
4. Regulatory Tailwinds: Age verification mandates expanding globally
5. High-Margin SaaS Economics: 92-95% gross margins, LTV:CAC >10:1
6. Multiple High-Value Verticals: Adult content, cannabis, alcohol, reproductive health

Why Now?

Three converging forces create a unique market window:

1. Regulatory Enforcement (2025): UK Online Safety Act, U.S. state laws proliferating, EU Digital Services Act
2. User Privacy Awareness Peak: $27.2B fraud losses, major biometric breaches, post-Dobbs privacy concerns
3. Technical Enablement: Secure Enclave ubiquitous (95%+ smartphones), hardware attestation mature

The market needs Lockette's solution NOW. The technology is ready NOW. The regulatory environment demands compliance NOW.