Market Insights

Spotlight on Identity Verification: Friday Dealbook for 4/23/2021

4/23/21

Victor Appelqvist

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This week’s deals reflect a market desire to fund solutions that better secure identity verification processes. Most notably, Signifyd raised $205 million through a combination of debt and Series E venture funding. The goal: global expansion of the company’s Commerce Protection Platform and identity graph across digital shopping and payments. In related news, Hypr raised $35 million in Series C venture funding to accelerate its go-to-market strategy and build support for its biometric security platform.

 

Additionally, Entrust acquired WorldReach Software, a move that will help the company expand its abilities to digitally transform the trusted identification process for immigration and border management. Digital identity and identity verification have taken the spotlight recently, as governments and travel service providers work to create seamless traveler experiences.

 

In the public market, Mastercard acquired Ekata for $850 million. Ekata uses insights to deliver unique scores, data attributes, and risk indicators that inform business decisions. This acquisition is an indication that incumbents are making efforts to grow their identity verification processes in a world of increasing digital payments and touch points. 

OWI Focus

Top Deals This Week

Signifyd
signifyd.com
2011

Developer of a standalone risk and fraud-prevention platform designed to make commerce safer for online retailers. The company's platform leverages big data, machine learning, and expert manual reviews to provide a financial guarantee against fraud on approved orders that turn out to be fraudulent, enabling retailers to provide friction-free buying experiences for their customers, increase sales, and open new markets while reducing risk.

 

The company raised $205 million through the combination of debt and Series E venture funding in a deal led by Owl Rock Capital Group on April 15, 2021, putting the company's pre-money valuation at $1.2 billion. Fidelity National Information Services, Canada Pension Plan Investment Board and Neuberger Berman also participated in the round. The funds will be used to expand the company's Commerce Protection Platform and identity graph globally, across digital shopping and payments.

Hypr
hypr.com
2014

Developer of a biometric security platform intended to ensure user data is kept private across the IoT. The company's platform eliminates the need for a centralized credential store to reduce the risk of an enterprise breach and decentralizes authentication to ensure that personal credentials such as biometrics, PINs, and passwords always remain safe on user desktops and mobile devices, thereby enabling clients to easily access information without any password authentication.

 

The company raised $35 million of Series C venture funding in a deal led by Advent International on April 21, 2021. Other undisclosed investors also participated in the round. The funds will be used to accelerate its go-to-market strategy and build support for its organization.

Entrust
entrust.com
1969

Entrust is a computer software company that specializes in secure ID services, card personalization systems, passport systems, security systems, card delivery and fulfillment systems, plastic card printers, PKI, SSL, multi-factor authentication, physical or logical access, digital certificates and signatures and identity-based security. The firm was founded in 1969 and is headquartered in Minneapolis, Minnesota.

 

Entrust announced that it has acquired an WorldReach Software, a Canadian company that helps governments and travel service providers create seamless traveler experiences through the digital transformation of the trusted identification process for immigration and border management programs.

Spotlight

Investor Highlights

Advent International
adventinternational.com
1984

 

Founded in 1984, Advent International is a private equity firm based in Boston, Massachusetts. The firm seeks to invest in the business and financial services, healthcare, industrial, retail, consumer and leisure, and technology sectors.

 

Active Portfolio - 102

Investments (TTM) - 59

Med. Round Amount - $41.32M

Med. Valuation - $156.4M

# of Exits - 521

 

Hypr

Wiz

Cyware

SPOTLIGHT
Public Highlights
Mastercard
mastercard.com
1966

Mastercard is the second- largest payment processor in the world, having processed $4.8 trillion in purchase transactions during 2020. Mastercard operates in over 200 countries and processes transactions in over 150 currencies. In addition, digital identity is a foundational part of Mastercard’s multi-layered approach to security. 

 

Mastercard (NYSE: MA) took steps to advance its identity verification efforts with the acquisition of Ekata for US$850 million. Ekata works with a wide range of global merchants, financial institutions, travel companies, marketplaces and digital currency platforms. The company uses insights to deliver unique scores, data attributes and risk indicators that businesses then use to make more informed decisions. They help their customers identify good consumers and businesses and bad actors in real-time during online account opening, payments and a variety of other digital interactions.

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