Market Insights

Brand Matters: Friday Dealbook for 7/31/2020

This Tuesday, MasterCard and Microsoft announced a partnership to develop a decentralized digital identity solution. As noted last week, the financial services industry is intrinsically reliant on digital identity – thus, it’s a natural progression for major financial services providers to expand their scope into identity management.

Our highlighted deals also reflect this trend: Prove (previously Payfone) acquired Early Warning Services’ mobile authentication technology (and, with it, 500 financial institutions as clients). Meanwhile, ComplyAdvantage, a company specifically targeting financial risk and crime analysis, raised $50 million to continue the development of its solution. Finally, Equifax acquired Ansonia Credit Data, integrating information from the trucking and transportation industry into its PayNet product.

The Top Deals Covered by OWI this Week

Payfone (Prove) \ payfone.com \ Founded in 2008

Developer of an identity-verification software designed to protect against identity theft and social engineering attacks from professional attackers. The company’s identity-verification software removes friction, drives engagement, and fights fraud with instant mobile authentication, enabling businesses to enhance the customer experience while lowering the risk friction and fraud.

The company rebranded to Prove on July 29, 2020 and announced the acquisition of mobile authentication technology from Early Warning Services. Early Warning Services, operator of the Zelle network and provider of identity, authentication, and payment services, is owned by seven of the largest U.S. banks. With the acquisition, Prove now counts 500 financial institutions as clients, including seven of the top 10 U.S. banks.

Equifax \ equifax.com \ Founded in 1899

Equifax is one of the leading credit bureaus in the United States, providing the consumer information that is the basis for granting credit. The company also provides database management, fraud detection, marketing, business credit, employer/income verification, and analytical services. About a fourth of the company’s revenue is generated outside the U.S. 

The company acquired Ansonia Credit Data, a major supplier of information on receivables from the trucking and transportation industry, for an undisclosed amount on July 24, 2020. Data from Ansonia will be integrated into PayNet, an Equifax product that provides credit information for small and medium-sized businesses. 

ComplyAdvantage \ complyadvantage.com \ Founded in 2014

Developer of a financial risk and crime analysis platform intended to provide real-time insight through the use of aggregated data sources. The company’s platform provides real-time insights into the risk of companies globally and changes how companies assess who they’re doing business with, while automating compliance and risk processes, enabling firms to make intelligent risk decisions faster.

The company raised $50 million of Series C venture funding in a deal led by Ontario Teachers’ Pension Plan on July 28, 2020. Balderton Capital and Index Ventures also participated in the round. The funds will be used to accelerate the development of the company’s industry-leading data and suite of products to serve institutions with diverse clients and complex risk exposure.

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Investor Highlight

Index Ventures \ indexventures.com \ Founded in 1996

Founded in 1996, Index Ventures is a venture capital firm headquartered in London, United Kingdom. The firm seeks investments in seed, early stage and growth stage companies. The firm prefers to make investments in media, retail, entertainment, fin-tech, software, business services, infrastructure, travel, healthcare, and communications sectors.

Active Portfolio – 280

Investments (TTM) – 81

Med. Round Amount – $13.32M 

Med. Valuation – $60.45M

Exits – 278

Deal History

In the past year, Index Ventures has invested in the following 7 identity companies:

Collibra

ComplyAdvantage

Evervault

Fast

Nova Credit

Resistant.ai

Transcend

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*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts