Market Insights

Locking it In: Friday Dealbook

12/11/2020

David Chang

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This week’s deals reflect growing investment trends for securing identity across the identity tech stack – both inside and out, leveraging cybersecurity, authentication, and verification respectively. Avira highlights the week, locking in an all-cash $360 million acquisition agreement with NortonLifeLock for its antivirus and cybersecurity management software. Rounding out the other deals are Beyond Identity’s $75 million of funding for its passwordless authentication platform and IDNow’s $15 million in debt financing to help its identity verification as a service platform expand globally. 

OWI Focus

Top Deals This Week

Avira
avira.com
1986

Developer of cyber security management software intended to protect users from scams, identity theft, external threats and financial loss. The company develops a range of antivirus and spam protection software that help to secure personal and official data in phones and computers by detecting and eliminating malware activities and computer viruses.

 

The company reached a definitive agreement to be acquired by NortonLifeLock (NAS: NLOK) for $360 million on December 7, 2020. The M&A deal is the latest of a series of consolidations and shifts in ownership around both companies. Notably, Avira has built its business around a freemium model that Norton said it plans to keep. NortonLifeLock is likely to use the asset to help it grow specifically in Europe, where Avira has a strong customer base.

BeyondIdentity
beyondidentity.com
2020

Developer of passwordless identity management systems designed to provide secure, passwordless authentication that integrates with SSO and customer application. The company's systems eliminate passwords and radically change the way of login without changing their technology stack or processes and replace passwords with fundamentally asymmetric-key cryptography, enabling organizations to eliminate credential-stuffing attacks.

 

The company raised $75 million of Series B venture funding from Koch Disruptive Technologies and New Enterprise Associates on December 8, 2020. Other undisclosed investors also participated in the round. The funds will be used to fuel further innovation of the company's industry-leading, advanced passwordless identity platform and to build a global footprint, including the acceleration of distribution channels, OEM partners, and international sales and support. Previously, the company raised $30 million of Series A venture funding in a deal led by Koch Disruptive Technologies and New Enterprise Associates on April 8, 2020, putting the company's pre-money valuation at $100 million. Other undisclosed investors also participated in the round.

IDNow
idnow.io
2019

Operator of an Identity Verification-as-a-Service platform designed to provide KYC solutions and electronic signing solutions for the financial services industry. The company's platform develops and markets secure products for the electronic identification of persons as well as for contract signing via computer or smartphone and also helps in the verification of business who acquire new customers online and want to offer identification and the conclusion of contracts online, thus enabling banks and financial institutions to verify their identity quickly and conveniently from online using their smartphone, tablet or webcam.

 

The company received EUR 15 million ($18.2 million) of debt financing in the form of a loan from European Investment Bank on December 8, 2020. The funds are to be put into research and development activities and into the company's international expansion.

Spotlight

Investor Highlights

Fin Venture Capital
finvc.co
2018

Founded in 2018, Fin Venture Capital is a venture capital firm based in San Francisco, California. The firm seeks to invest in FinTech and adjacent verticals in principally B2B Enterprise SaaS companies in the following sub-sectors: alternative finance, insureTech, asset management, real estate tech, enabling tech, blockchain applications, and Infrastructure sub-sectors.

 

Active Portfolio - 18

Investments (TTM) - 8

Med. Round Amount - $10.00M

Med. Valuation - $265.00M

# of Exits - 0

 

Neuro-ID

Onfido

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Locking it In: Friday Dealbook for 12/11/2020

This week’s deals reflect growing investment trends for securing identity across the identity tech stack – both inside and out, leveraging cybersecurity, authentication, and verification

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