Market Insights

Friday Dealbook: Get in the FaaS[t] Lane

4/01/21

Victor Appelqvist

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Following a rapid-fire few weeks in the identity investment market, we saw movement slow down as we reached the end of Q1. This week, investors showcased an interest in a wide range of solutions spanning across the landscape – from solving privacy issues in digital advertising to Fraud Prevention as a Service (FaaS). Incode raised $29.98 million of Series A funding to improve the digital customer onboarding experience by incorporating their secure biometrics product for their identity verification services. ID5 raised $6 million of Series A to improve their adtech solutions and increase their partnerships to offer a more targeted ad service. Lastly, Sardine raised an estimated $4.6 million through a combination of Seed-1 and Seed-2 to improve its technology stack to detect fraud through its FaaS. 

 

In the public market, Google’s independent growth fundraised $210 million for the cybersecurity firm Orca. This move reflects the need for companies to raise capital to meet the rapid growth in fraud prevention as companies further build out digital offerings and cybersecurity threats follow.

OWI Focus

Top Deals This Week

Incode
incode.com
2015

Developer of an end-to-end omnichannel identity platform designed to offer a frictionless customer experience at every point of contact with a consistent level of security across multiple channels. The company's platform uses AI to offer secure biometric products for banking, payment, and retail industries, enabling customers to validate their identity with their face & government-issued ID all through a web version or native apps and permits organizations to authenticate and onboard new customers easily.

 

The company raised $29.98 million of Series A venture funding in a deal led by 3L Capital and DN Capital on March 24, 2021. DILA Capital, Framework Ventures, FJ Labs, and Walter Ventures also participated in the round. The funds will be used to scale the company's technology as well as fuel aggressive growth in North America and Europe, including an expected tripling of headcount.

ID5
d5.io
2016

Developer of a centralized ID synchronization platform intended to solve the problem of inefficiencies in website campaign performance by creating a universal ID for programmatic advertising. The company's platform decides which partners can and cannot synchronize cookies on their website, ensures privacy compliance and consent management across their ecosystem, improves the page load time and the on-site user experience, enabling publishers, data providers and ad tech platforms to operate more efficiently and to maximize the value of their data and inventory.

 

The company raised $6 million of Series A venture funding from Alliance Entreprendre, Progress Ventures and 360 Capital Partners on March 29, 2021. The funds will be used to hire and invest in ad tech infrastructure like data centers and servers that power how digital ads are targeted.

Sardine
sardine.ai
2020

Developer of a device intelligence platform intended to provide risk and fraud infrastructure for the online economy. The company's cutting edge AI and risk engine personalizes and allows for a far reduced sign-up friction while enabling increased fraud detection through 1000s of data points screened in real-time about the device, browser, and behavioral biometrics, thereby building the risk and fraud layer of the fintech infrastructure and enabling a host of new possibilities with a mission to increase trust and access and reduce cost in the ecosystem.

 

The company raised an estimated $4.6 million through a combination of Seed-1 and Seed-2 funding from Essence VC, Village Global, 11.2 Capital and XYZ-Ventures on August 5, 2020, putting the company's pre-money valuation at $10 million. Sweat Equity Ventures and other undisclosed investors also participated in the round.

 

Spotlight

Investor Highlights

FJ Labs
fjlabs.com
2013

FJ Labs is a venture capital firm that is headquartered in New York, New York. The firm seeks to invest in the financial services, software, mobile, and gaming sectors.

 

Active Portfolio - 369

Investments (TTM) - 77

Med. Round Amount - $5.71M

Med. Valuation - $27.00M

# of Exits - 195

 

Incode

LoginID

Figment

SPOTLIGHT
Public Highlights
Alphabet
abc.xyz
1998

Alphabet is a holding company, with Google, the Internet media giant, as a wholly-owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more.

Orca security raised a $210 million funding round led Alphabet’s independent growth fund, CapitalG, and Redpoint Ventures, and comes on the heels of 1,000 percent year-over-year sales growth. The latest infusion of cash brings Orca Security to $292.5 million of outside funding and a $1.2 billion valuation just two years after the company’s founding.

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