Market Insights

Full Steam Ahead for Cloud-Adjacent Funding

03/12/2021

David Chang

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Investors in this week’s deals reflect a market desire to fund solutions that better secure endpoints connected across the cloud and lessen the manual burden of enterprise identity management – especially in light of evolving work trends due to the pandemic. Snyk’s flush series E round of $300 million to further develop its cloud platform demonstrates this, as does Pathlock’s $20 million growth round to bolster R&D for its security analysis platform and Evolv’s $300 million of development capital to support growing demand for its PIAM solution. In the public market, Dropbox’s $165 million acquisition of DocSend reflects the encroachment into e-signatures by adjacent solution segment players: further illustrating investor trends this week around digitization and automating identity processes for the enterprise.

OWI Focus

Top Deals This Week

Synk
snyk.io
2015

Developer of security analysis tools designed to identify open-source vulnerabilities. The company's security analysis tools secure authoring and consumption of open-source code and offer tools that help to find, fix and monitor known threats in open source dependencies, enabling enterprises and developers to use open source without compromising security.

 

The company raised $300 million of Series E venture funding in a deal co-led by Accel and Tiger Global Management on March 10, 2021, putting the company's pre-money valuation at $4.4 billion. GV, Salesforce Ventures, Atlassian, Stripes, Boldstart Ventures, Canaan Partners, Addition, Geodesic Capital, Sands Capital Ventures, Temasek Holdings, Alkeon Capital Management, Franklin Templeton Investments United Kingdom and Coatue Management also participated in the round. The funds will be used to serve the growing demand for the company's Cloud-Native Application Security Platform that provides security visibility and remediation for every critical component of modern applications.

Pathlock
pathlock.com
2004

Developer of a risk and regulatory compliance software designed to offer integrated risk management. The company's software facilitates integrated or stand-alone analysis of a company's compatible and incompatible enterprise services, enabling organizations to reduce access control complexity and have an enhanced transaction-control monitoring across enterprise applications and business processes.

 

The company announced it has secured $20 million in a strategic growth round led by Vertica Capital Partners. Pathlock says the funds will be used to bolster R&D for its products, extending the capabilities of its insider threat prevention platform. 

Evolv
evolvtechnology.com
2013

Developer of AI-based weapons-screening and threat detection systems designed to return confidence and peace of mind to people visiting public spaces. The company's systems use sensors to detect both metallic and non-metallic threats, while also integrating facial recognition to identify people of interest, enabling government agencies and private businesses to handle security for protection against today's threats.

 

The company is in talks to receive $300 million of development capital from Motorola Solutions, Peyton Manning, Andre Agassi, Steffi Graf, Joe Torre, Mark Attanasio, Bennett Rosenthal, Theo Epstein, Tony Ressler, Magnetar Capital, Eldridge (Greenwich), Senator Investment Group and UBS O'Connor through a private placement as of March 7, 2021. The funds will be used to extend Evolv's product portfolio, operating expenses incurred as a result of customer demand, and working capital to support increasing production demand.

Spotlight

Investor Highlights

Geodesic Capital
geodesiccap.com
2015

Founded in 2015, Geodesic Capital is a venture capital firm based in Foster City, California. The firm seeks to invest in enterprise and consumer technology firms.

 

Active Portfolio - 23

Investments (TTM) - 8

Med. Round Amount - $110.00M

Med. Valuation - $1.19B

# of Exits - 10

 

Snyk

ThoughtSpot

Tanium

DataBricks

SPOTLIGHT
Public Highlights
DropBox
dropbox.com
2009

Dropbox provides cloud-based file storage, sharing, and project collaboration services for individuals and, to a lesser extent, enterprise customers. The company was founded in 2007 and offers a browser service, toolbars, and apps to upload, share, and sync files to the cloud that can be accessible across a number of devices and by a multitude of users. Dropbox allows users to store and access documents, videos, and photos.

 

Dropbox announced Tuesday that it has signed an agreement to acquire DocSend, makers of a document sharing and analytics platform, for $165 million. DocSend enables businesses to share documents through a secure link sent via email rather than an attachment. The platform also provides analytics on engagement and access, allowing users to track views and time spent on each document. With DocSend, along with its 2019 acquisition of HelloSign, Dropbox is attempting to build out its suite of products for managing document workflows -- a key component of the company's growth strategy and its shift toward serving the enterprise.

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