Market Insights

Friday Dealbook: Not-So-Risky Business

4/16/21

Victor Appelqvist

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OWI has been tracking rising investor interest in funding platforms that are increasing their offerings for identity and document verification, fighting for market share through low margins, and for security and risk management, as data breaches continue to grow in sophistication and frequency. Most notably, this week, Veriff raised $69 million of development capital to strengthen their identity verification process for government IDs in the United States. In addition, DoControl raised $10 million of Series A, and SafeGuard Cyber raised $45 million in venture funding to develop their technology stack further, expanding the breadth of their risk mitigation platform. 

 

In the public market, Microsoft acquired Nuance Communications for $16 billion, an ambient clinical intelligence solution digitizing conversations for healthcare providers, reflects the accelerated efforts to provide industry-specific cloud offerings to support customers and partners as they respond to disruption and new opportunities.

OWI Focus

Top Deals This Week

Veriff
veriff.com
2015

Developer of a SaaS-based identity verification platform designed to make online identity verification service secure. The company's platform offers a secure authentication, cross-platform technology that aids in detecting fraud as well as recognizes any website or mobile application to verify drivers license, passport and other identities, enabling the commercial sectors to improve fraud prevention and compliance with KYC regulations.

 

The company raised $69 million of Series B venture funding in a deal led by IVP and Accel on April 12, 2021. Other undisclosed investors also participated in the round. The funds will be used to continue building on its fast-growing market opportunity in the U.S. and deliver on its promise of building a stronger source of identity online than government-issued IDs alone currently provide.

DoControl
docontrol.io
2020

Operator of a technology company intended to help enterprises find the right balance between security and business enablement. The company offers automated, self-service data access control tools for SaaS applications data access monitoring, orchestration, and remediation, enabling clients to improve security and operational efficiency in labor-intensive security risk management and data exfiltration prevention.

 

The company raised $10 million of Series A venture funding in a deal led by RTP Ventures on April 9, 2021. CrowdStrike, Cardumen Capital and StageOne Ventures also participated in the round. The funds will be used to execute its go-to-market strategy by doubling its headcount across R&D, sales, and marketing to accelerate global expansion while delivering an enterprise ready product that supports hundreds of customer feature requests.

SafeGuard
safeguardcyber.com
2014

Developer of an end-to-end collaboration security platform designed to manage the full life cycle of digital risk protection. The company's platform detects, analyzes, defends and prevents cybersecurity attacks while automating governance and compliance and delivers massive-scale threat analytics that leverages machine learning to notify clients, enabling clients to take action against risks and threats across digital channels in real-time.

 

The company raised $45 million of venture funding through a combination of debt and equity on April 12, 2021, putting the company's pre-money valuation at $75 million. A $21 million of Series D equity was led by NightDragon with participation from Cisco Investments and AllegisCyber. A $23 million debt portion was provided by undisclosed lenders. The company intends to use the funding to expand its business and technology capabilities to meet global demand for this rapidly accelerating market.

Spotlight

Investor Highlights

Accel
accel.com
1983

Founded in 1983, Accel is a venture capital firm based in Palo Alto, California. The firm seeks to invest in companies operating in the commercial products, healthcare, mobile and infrastructure sectors.

 

Active Portfolio - 443

Investments (TTM) - 148

Med. Round Amount - $14M

Med. Valuation - $76M

# of Exits - 592

 

Veriff

Middesk

Socure

Synk

ForeRock

SPOTLIGHT
Public Highlights
Microsoft
microsoft.com
1975

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Microsoft (NAS: MSFT) acquired  for $16 billion on April 12, 2021. The acquisition will help Microsoft to put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections. Nuance Communications Inc is the pioneer in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze, and respond to people amplifying human intelligence to increase productivity and security.

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