Market Insights

Forter-fication & Fraud: Friday Dealbook

12/4/2020

David Chang

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In light of the pandemic transforming the ways we access digital identity, governments — as in the case of Ontario — and private entities alike are scrambling to secure their platforms, with this week’s deals reflect this trend of fortification, highlighted by Forter’s $125 million infusion to further its trust ecosystem for online merchants. These deals are geared around helping the enterprise reduce and eliminate fraud across the consumer lifecycle: both horizontally, as with Deduce’s $7.3M round to prevent account takeover, and vertically, with Imprivata’s acquisition of FairWarning to secure healthcare workflows.

OWI Focus

Top Deals This Week

Forter
forter.com
2013

Provider of a decision as a service-based online fraud prevention tool designed to help online retailers detect and eliminate transaction risks. The company's online fraud prevention platform is a fully automated system that prevents credit card fraud, account takeover, identity theft, returns abuse and eliminates rules, scores and manual reviews covered by a full fraud chargeback guarantee, enabling e-commerce companies to automate transaction risk management processes and reduce transaction frauds in real-time.

 

The company raised $125 million of Series E venture funding in a deal co-led by Bessemer Venture Partners, Felix Capital, and Itai Tsiddon on November 19, 2020, putting the company's pre-money valuation at $1.18 billion. 5 other investors also participated in the round. The funds will be used to accelerate the company's vision of establishing an ecosystem of trust across online merchants, banks, and payment providers to block fraud and give consumers the trust, and convenience to shop freely.

FairWarning
fairwarning.com
2005

Developer of software intended to address security challenges. The company's cloud application security services offer data protection and governance for core applications, including electronic health records (EHRs), Salesforce, office 365, and hundreds of other programs thus protect organizations of all sizes and around the world against data theft and misuse by securing private sensitive information as well as support their compliance requirements.

 

The company was acquired by Imprivata, via its financial sponsor Thoma Bravo, through an LBO on December 2, 2020 for an undisclosed sum. The combination of Imprivata and FairWarning solutions provide customers with a single Digital Identity platform that integrates role-based access controls, robust identity governance, and critical data privacy compliance.

Deduce
deduce.com
2019

Developer of an identity protection platform designed to protect end-users from account takeovers. The company's platform leverages behavior-detection algorithms to correlate data from every web request in order to determine whether a user is who they claim to be at the point of online interaction, enabling businesses to gain visibility into user threats and risks.

 

The company raised $7.3 million of seed funding in a deal led by True Ventures on November 30, 2020. Recursive Ventures, Ridge Ventures, Carthona Capital, and Swift Ventures also participated in the round. Deduce has more than a dozen customers and expects to see a 70 percent increase in customer acquisition in this fourth quarter, Jacoby said. The company is targeting verticals that have a plethora of consumer accounts, such as fintech, e-commerce, education, health care and gaming.

Spotlight

Investor Highlights

Commerce Ventures
ommerce.vc
2012

Founded in 2012, Commerce Ventures is a venture capital firm based in San Francisco, California. The firm seeks to invest in the mobile, retail, and software sectors. Commerce Ventures makes investments in early-stage companies as a strategic, non-lead investor and leverages an expansive network of founders, investors, and corporate partners.

 

Active Portfolio - 57

Investments (TTM) - 15

Med. Round Amount - $10.00M

Med. Valuation - $40.00M

# of Exits - 16

 

Forter

Bumped

Syte

BloomCredit

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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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