Market Insights

IBM’s Shiny New (Red) Hat

November 2, 2018

The first quarter of Q4 2018 has been busy, to say the least. More capital  — $409.63B — has passed through the private markets in the first month than the entirety of Q3 2018, with the leading driver being Corporate Strategic M&A, which accounted for $569.59B. Identity professionals should be excited by this news, as Red Hat — provider of open sourced technology solutions for enterprises — was bought by IBM for the shiny price tag of $34B, the fourth largest M&A of Q4 so far. This startling news is also coming off of a summer where we saw Duo Security bought for $2.35B.

It is clear that identity-focused companies have garnered well-deserved attention over the past several months, and we expect the momentum to keep up for players interested in solving pervasive challenges that affect a vast array of industry verticals.


The Top 3 Weekly Deals Covered by OWI this Week.


Concord \ \ Founded in 2010

Developer of a contract management software designed to streamline the contract lifecycle management process. The company’s software offers double authentication, unlimited storage, free and unlimited electronic signatures, enabling independent contractors, and small and medium businesses to collaborate easier on documents internally and with third parties across the entire contract lifecycle.

The company raised $25 million of Series B venture funding in a deal led by Tenaya Capital on October 30, 2018. Alven Capital Partners and Charles River Ventures also participated in the round. The funds will be used to accelerate development of the company’s platform, increase headcount across engineering, sales, HR & marketing teams, and advance international expansion.


Arctic Wolf \ \ Founded in 2012

Developer of a cloud security platform intended to offer network security services. The company’s SOC-as -a-service platform uses APIs and machine learning to provide real-time monitoring, analysis and alerts on user’s behavioral and cloud resources, enabling organizations to combat themselves against cyber-crime without the need of building their own security operations center.

The company raised $45 million of Series C venture funding in a deal led by The Future Fund on October 25, 2018, putting the company’s pre-money valuation at $145 million. Sonae IM, Adams Street Partners, Unusual Ventures, Knollwood Investment Advisory, Redpoint Ventures and Lightspeed Venture Partners also participated in the round. The funds will be used to accelerate the company’s growth and meet the soaring demand for its SOC-as-a-service offering. Prior to this, the company raised $16 million of Series B venture funding in a deal led by Sonae Investment Management Software & Technology on January 10, 2018.


W2 Global Data Solutions \ \ Founded in 2011

Provider of web-based, online screening tools and services designed to conduct KYC, anti-money laundering (AML) and fraud prevention due diligence. The web-based, online screening tools and services, aggregates data related to age & ID verification, PEP and sanctions screening, enhanced due diligence, device location and reputation management as well as a wide range of professional services from a wide spectrum of suppliers for a single point of integration to a myriad of data sources, providing real-time access to reliable, up to date information.

The company raised GBP 3 million of venture funding from Development Bank of Wales, Mercia Technologies and TTI Angels on October 29, 2018. The funding will be used to recruit a further 20 staff. Previously, the company raised an undisclosed amount of Series A venture funding from Mercia Technologies, Finance Wales and Thorium Technology Investors (TTI) on April 13, 2017.


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Investor Highlight


FTV Capital \ \ Founded in 1998

Description of Investor

FTV Capital is a growth equity investment firm based in San Francisco, California and was founded in 1998. The firm invests in the technology, software and financial services sectors.

Active Portfolio – 38
Investments – 10
Med. Round Amount – $18.00M
Med. Valuation – $56.43M
# of Exits – 70

Deal History
In the past year, FTV Capital Ventures has invested in the following 5 identity companies:

A-Lign Assurance

*Data acquired using PitchBook with proprietary keyword searches set by OWI Analysts