Druva draws $80M, ShoCard snags $4M: Friday Deal Book for 8/25/2017

OWI’s Friday Deal Book provides you with a weekly roundup of partnerships, funding, and product announcements in the identity industry. Here’s a quick peek at what you need to know for the week ending Aug 25, 2017.

Blockchain mobile ID platform ShoCard raises $4 million, launches enterprise product
The round was led by existing investors, Morado and AME Cloud Ventures, with new participation from Storm Ventures, Danhua Capital, Correlation Ventures, Recruit Strategic Partners and Robert Tinker, bringing the total funding to $5.5 million. ShoCard provides mobile identity management solutions using blockchain technology. The company concurrently announced the launch of an enterprise product, ShoBadge, for enterprise identity verification and authentication. ShoBadge aims to enable employees to share identification information with employers, while enterprises can integrate the solution into existing single sign on systems and traditional identity and access management platforms such as Okta. Direct-to-consumer identity management has been slower to gain traction than its enterprise counterparts. [Read more]

Cloud data protection service Druva raises $80 million
The round was led by Riverwood Capital, with participation from Sequoia Capital India, Nexus Venture Partners, Tenaya Capital, and other existing investors, bringing the company’s total funding to approximately $200 million. Druva provides data protection as a service, allowing enterprises to apply data governance policies across cloud, on premise, and other endpoint deployments. The growth of ‘everything-as-a-service’ has resulted in increasingly complex data flows within both organizations’ internal infrastructures and out to partners and vendors. This increased data footprint, however, has created complexity for data compliance and governance policies. Pressure from regulations such as GDPR, as well as malware and other attacks, has driven growth in the data governance. [Read more]

Identity verification provider Emailage raises $10 million
The round was led by Anthos Capital, with participation from Radian Capital, Wipro Ventures, Mucker Capital and Tallwave Capital, bringing the company’s total funding to $15 million. Emailage will use the funding to expand existing partnerships and accelerate global expansion into key markets. Emailage is a software-as-a-service provider or risk scoring solutions to detect fraudulent accounts and transactions. True to its name, Emailage uses email address as a unique global identifier for its scoring methodology. Card not present transactions continue to drive fraud rates to global highs globally, while false declines of good customers continue to put pressure on the other side. We anticipate continued strong spending on fraud and risk solutions. [Read more]

Equifax and FIS partner on new consumer authentication product
Equifax and FIS announced the launch of OnlyID, a digital authentication solution that allows consumers to use a single login across participating financial institutions and e-commerce partners. The companies hope that the product will increase both user security as well as convenience. The insecurity of passwords has been a longstanding problem in the industry, but despite repeated predictions of ‘the death of the password,’ the vast majority of users still rely on password based authentication for day to day online interactions. Single sign on solutions such as logging in with Google have gained traction for some consumer applications. Earlier this year Capital One unveiled a developer API for third party players to leverage Capital One’s identity verification and authentication capabilities. Experian and FIS appear to be betting on a network effect of the reach of their existing relationships with businesses to drive adoption of OnlyID. [Read more]

Clarion Capital Partners invests in AML RightSource
While terms of the deal were not disclosed, the current shareholders of AML RightSource will maintain an ownership stake. The funds and partnership will be used to expand the company’s geographic reach and services. AML RightSource provides outsourced staffing for anti-money laundering and Bank Secrecy Act compliance through its 500-person workforce. Regulatory pressures for money laundering and know your customer compliance remain strong even during this administration. Many companies invest in software solutions for transaction monitoring, and companies of a variety of size have turned to outsourced providers for staff augmentation or part time compliance teams. [Read more]