Market Insights

Acquisition of Behavioral Biometric Players: Weekly Dealbook for 6/03/2021

06/03/21

Victor Appelqvist

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Investors in this week’s DealBook reflect an interest in expanding authentication services by acquiring multiple behavioral biometrics players. Most notably, Prove acquired UnifyID for an undisclosed amount. Prove will be incorporating UnifyID’s enhanced push authentication technology and mobile behavioral biometrics, capable of recognizing a users unique gait and motion signature, to a multi-factor authentication platform. In addition, Signicat acquired Encap Security, a subsidiary of AllClear ID, to expands its technology solutions for regulated businesses with services required to verify, onboard, and authenticate across the entire customer lifecycle. Lastly, Idwall has raised $38 million in a Series C round to keep up with the rapid increase in fraud cases in Latin America.

In the public market, Mitek (NAS: MITK) acquired ID R&D for $49 million. Mitek will expand its authentication solutions using ID R&D biometric technology designed to increase the security of authentication with multiple biometric modalities.

OWI Focus

Top Deals This Week

UnifyID
unify.id
2015

UnifyID is a developer of a passive behavioral authentication platform designed to identify users without any conscious user action. The company's platform utilizes sensor fusion and machine learning in order to achieve enhanced accuracy while improving the user experience during authentication both in-application and in the physical world, enabling users to identify themselves in a unique way that is difficult to forge or crack.

 

UnifyID reached a definitive agreement to be acquired by Prove for an undisclosed amount on June 1, 2021. Previously, the company raised $23.4 million of Series A venture funding in a deal led by New Enterprise Associates on August 1, 2017, putting the company's pre-money valuation at $70 million. StartX (US), Andreessen Horowitz, Accomplice VC, OVO Fund, Dustin Dolginow, and Prasanna Srikhanta also participated in the round. The funds will be used to grow the team to expand enterprise trials, accelerate research, and maintain the company's position as the leader in implicit authentication and behavioral biometrics.

Idwall
idwall.co
2016

Idwall is a developer of an identity verification platform designed to improve user authentication and fraudulent detection. The company's platform extracts data from document images and checks whether the data and users' face matches the public source in real-time, enabling businesses to verify their customers' data in sign ups and purchases and operate with safety.

Idwall has raised $38 million in a Series C round led by Endurance. GGV Capital, Monashees, Canary, Qualcomm Ventures LLC, ONEVC, Peninsula and Norte also participated in the funding, bringing its total raised to nearly $50 million. The company says it has grown 1,458% between 2017 and 2020, with average growth of 144% per year. It's more than 300 clients include 10 unicorns, two out of the three biggest banks in Brazil and companies such as iFood, Claro, Cielo, Loggi, Ebanx, QuintoAndar and OLX, among others.

 

Encap Security
encapsecurity.com
2006

Encap Security is a provider of software security products for mobile applications for the financial services and enterprise markets. The company provides simple software-based, two-factor authentication and digital signing that allows customer authentication while addressing user convenience, security, and service configurability.

Encap Security, a subsidiary of AllClear ID, was acquired by Signicat, via its financial sponsors Nordic Capital and Viking Venture, through an LBO on June 1, 2021, for an undisclosed sum. This acquisition will help Signicat to offer all the technology-regulated business services required to verify, onboard, and authenticate across the entire customer lifecycle, including digital signatures and payment authorization.

Spotlight

Investor Highlights

Andreessen Horowitz
a16z.com
2009

Founded in 2009, Andreessen Horowitz is a venture capital firm headquartered in Menlo Park, California. The firm prefers to invest in seed to late-stage companies operating in the consumer, enterprise, biotechnology, healthcare, cryptocurrency, fintech, and technology sectors.

Active Portfolio - 392

Investments (TTM) - 161

Med. Round Amount - $15.00M

Med. Valuation - $81.03M

# of Exits - 260

 

Very Good Security

Arweave

Ribbon Health 

Q.Bio

 

 

SPOTLIGHT
Public Highlights
Mitek
mitek-us.com
1986

Mitek Systems Inc offers mobile capture and identity verification software solutions for enterprises. The firm is a software development company in computer vision, artificial intelligence, and machine learning. Mitek's Mobile Deposit solution is used by consumers for mobile check deposit. The company's Mobile Verify verifies a user's identity online enabling organizations to build safer digital communities, whereas CheckReader enables financial institutions to automatically extract data from a check image received across any deposit channel - branch, ATM, RDC, and mobile.

ID R&D was acquired by Mitek Systems (NAS: MITK) for $49 million on June 1, 2021. ID R&D is a developer of biometric technology designed to increase the security of authentication while enhancing the user experience. The company's technology suite includes voice and behavioral biometrics, voice anti-spoofing, and the world's first passive facial liveness detection capability, enabling customers with multiple biometric modalities for secure, frictionless biometric authentication.

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