Market Insights

eCommerce, Payments and APIs: Weekly Dealbook for 5/27/2021

5/27/21

Victor Appelqvist

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Investors in this week’s deals are focused on expanding payment fraud and API protection. Most notably, Forter raised $300 million of Series F venture funding on a $3 Billion valuation. The company will use these funds to invest in talent and to continue growing its global ecosystem in different verticals. Sift acquired Chargeback for an undisclosed amount, as it wants to provide a wholistic fraud prevention ecosystem that can offer complete protection against payment fraud. Lastly, Salt Security raised $70 million in a Series C funding round to expand its global operations across R&D, sales and marketing, and customer success.

In the public market, Flywire (NAS: SPLK) raised $250.56 million in its initial public offering on the Nasdaq stock exchange. Flywire will use those funds to expand its secure global payment platform, offering its clients an innovative and streamlined process to receive reconciled domestic and international payments more cost-effectively and efficiently.

OWI Focus

Top Deals This Week

Forter
forter.com
2013

Forter is a developer of a fraud prevention platform designed to help online retailers detect and eliminate transaction risks. The company's platform is a fully automated system that prevents credit card fraud, account takeover, identity theft, returns abuse and eliminates rules, scores and manual reviews covered by a full fraud chargeback guarantee, enabling e-commerce companies to automate transaction risk management processes and reduce transaction frauds in real-time.

 

Forter raised $300 million of Series F venture funding in a deal led by Tiger Global Management on May 25, 2021, putting the company's pre-money valuation at $2.7 billion. Scale Venture Partners, Sequoia Capital Israel, March Capital, Salesforce Ventures, NewView Capital, Bessemer Venture Partners and 3 other investors also participated in the round. The funding will be used to invest in talent and technology and to continue expanding its global ecosystem of retailers, e-commerce platforms, issuing banks and payment providers. 

Chargeback
chargeback.com
2011

Chargeback is a developer of a dispute management platform designed to help merchants prevent and manage chargeback fraud through monitoring, responses, and alerts. The company's platform provides a fraud detection suite that filters transactions before they are accepted as well as keeps card-not-present credit card processing accounts in standing with card service providers, by preventing credit card chargebacks and protecting against malicious and credit card frauds, enabling businesses to recover lost time and revenue while transforming any negative customer interaction into one that drives brand loyalty and increases acceptance rates.

 

Chargeback reached a definitive agreement to be acquired by Sift for an undisclosed amount on May 25, 2021. Previously, the company raised $6.6 million of Series A1 venture funding in a deal co-led by FINTOP Capital and Next Frontier Capital on June 8, 2020. Kickstart Seed Fund and Next Coast Ventures also participated in the round.

Salt Security
salt.security
2016

Salt Security is a developer of an application programming interface designed to protect APIs that form the core of every modern application. The company's API Protection platform is a patented solution that uses machine learning and AI to automatically and continuously identify and provide protection, it learns the granular behavior and requires no configuration or customization to pinpoint and block attackers, enabling clients to prevent the next generation of API attacks.

 

Salt Security raised $70 million in a series C funding round led by Advent International. The Palo Alto, California-based startup says it plans to use the capital to expand its global operations across R&D, sales and marketing, and customer success. In addition, Salt Security raised $30 million of Series B venture funding in a deal led by Sequoia Capital on December 8, 2020, putting the company's pre-money valuation at $120 million.

Spotlight

Investor Highlights

March Capital
marchcp.com
2014

Founded in 2014, March Capital is a venture capital firm based in Santa Monica, California. The firm seeks to invest in cloud-based technology enterprises operating in mobile, artificial intelligence, and software sectors.

 

Active Portfolio - 35

Investments (TTM) - 15

Med. Round Amount - $11.08M

Med. Valuation - $38.0M

# of Exits - 25

 

Forter

Tessian 

SpyCloud

 

SPOTLIGHT
Public Highlights
Flywire
flywire.com
2003

Flywire Corp provides a secure global payments platform, offering its clients an innovative and streamlined process to receive reconciled domestic and international payments in a more cost effective and efficient manner. The company's solutions are built on three core elements namely a payments platform; a proprietary global payment network and vertical-specific software backed by its deep industry expertise.

 

Flywire raised $250.56 million in its initial public offering on the Nasdaq stock exchange under the ticker symbol of FLYW on May 26, 2021. A total of 10,440,000 shares were sold at a price of $24 per share. The underwriters were granted an option to purchase up to an additional 10,440,000 shares from the company to cover over-allotments, if any.

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