Market Insights

Remote Learning Fraud Prevention: Friday Dealbook for 4/30/2021

4/30/21

Victor Appelqvist

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This week’s deals have their attention on the education sector’s rising cybersecurity threats and secure, remote proctor service needs. Most notably, Sift raised $50 million of Series E venture funding to scale and expand a portfolio of products designed to help fight fraud while reducing friction for legitimate customers. Honorlock raised $25 million of Series B venture funding to expand their e-learning, remote proctor service platform – a move that reflects the growing importance of fraud prevention in the education sector. Lastly, Unam ID raised an undisclosed amount of funding to support its vision of a ‘sharified’ (shared, verified) digital identity that utilizes mobile device biometrics, email credentials, passwords, and other verifications in one place.

 

In the public market, KnowBe4 raised $152 million in its initial public offering on the Nasdaq stock exchange. Because entities need to continuously educate employees about relevant cyber threats and security, KnowBe4 offers a security awareness framework that allows businesses to assess, track, and mitigate the ongoing threat of social engineering attacks. 

OWI Focus

Top Deals This Week

Sift
sift.com
2011

Sift is a developer of a machine-learning fraud detection software designed to help businesses detect and fight fraud. The company's software uses large-scale, cloud-based machine learning to observe fraud patterns. This includes specific page navigation sequences, internet protocol ranges, email address patterns, graph connectivity structures and browser configurations. It enables businesses to generate more revenue, increase conversion rates and reduce fraud and abuse.

 

The company raised $50 million of Series E venture funding in a deal led by Insight Partners on April 22, 2021, putting the company's pre-money valuation at $1.1 billion. Stripes and Union Square Ventures also participated in the round. The company will use the funding to continue expanding its product portfolio, grow engineering and sales teams globally, and build out their digital trust and safety platform. The platform will help merchants fight fraud while reducing customer friction. Additionally, they will use the funding to grow revenue, deliver unmatched accuracy and expert support to their customers, while enhancing its platform offerings and expanding the industries and regions they serve.

 

Unum ID
unum.id
2016

Unum ID is the developer of a web-based platform intended to help businesses identify online users through a shared and verified identity. The company's single identity software links many verifications about a user into one identity that's shared across companies, enabling businesses to replace passwords with a single identity for everything, online and offline.

Unum ID has secured funding from Franklin Templeton for an undisclosed amount to support its vision of a ‘sharified’ (shared, verified), digital identity which utilizes mobile device biometrics and brings together email credentials, passwords and other verifications all in one place. Additionally, the company raised $2 million of seed funding in a deal led by Draper Associates on June 17, 2020, putting the company's pre-money valuation at $10 million. Tappan Hill Ventures, Wedbush Ventures, Hard Yaka, EvoNexus and other undisclosed investors also participated in the round. The funds will be used to accelerate sales and product development efforts.

Honorlock
honorlock.com
2014

Honorlock is the developer of an e-learning platform designed to manage remote proctoring services for students. The company's platform offers remote proctoring services for online assessments. It uses webcams and screen-capturing technology, implementing screen capture details to help colleges and universities expand online programs and exam schedules.  Their goal is to help make distance education convenient by providing customizable, effective testing experiences.

The company raised $25 million of Series B venture funding in a deal led by Owl Ventures on April 27, 2021. Arsenal Growth, Defy Partners and other undisclosed investors also participated in the round. The funds will be used to further accelerate growth and enter new markets. Previously, the company raised $11.5 million of Series A venture funding in a deal led by Defy Partners on March 19, 2020, putting the company's pre-money valuation at $6 million. Arsenal Growth also participated in the round.

Spotlight

Investor Highlights

Insight Partners
insightpartners.com
1995

Founded in 1995, Insight Partners is a growth capital firm headquartered in New York, New York. The firm seeks to invest in growth-stage technology and software companies.

Active Portfolio - 272

Investments (TTM) - 162

Med. Round Amount - $35M

Med. Valuation - $203M

# of Exits - 273

 

Sift 

OneTrust

Wiz

SentinelOne

SPOTLIGHT
Public Highlights
KnowBe4
knowbe4.com
2010

KnowBe4 Inc has created a security awareness framework that allows businesses to assess, track, and mitigate the ongoing threat of social engineering attacks to their cybersecurity. Security Awareness, Security Orchestration, Automation and Response, Governance, Risk, and Compliance are among the features of its platform. The company derives its revenue from subscription services fees paid by customers for access to its cloud-based platform and content.

 

The company raised $152 million in its initial public offering on the Nasdaq stock exchange under the ticker symbol of KNBE on April 22, 2021. A total of 9,500,000 Class A shares were sold at a price of $16 per share. After the offering, there was a total of 166,074,402 outstanding shares (excluding the over-allotment option) priced at $16 per share, valuing the company at $2.65 billion.

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