Market Insights

Dell Jettisons RSA for $2B: Friday Dealbook for 2/21/2020

February 21, 2020

This week’s deals run the gamut between $1M seeds and $200M behemoths. SentinelOne made headlines this week with its massive $200M Series E, just 8 months after its last round. Meanwhile, Credify raised $1M to bring universal identity and trust systems to Southeast Asia’s financial markets. Dell sold RSA for a whopping $2.075 billion, marking yet another change of hands for the industry veteran. These disparate deals demonstrate the diversity of companies and industries dependent on digital identity and also illustrate the maturation of the digital identity market.

 

The Top Deals Covered by OWI this Week

 

SentinelOne \ sentinelone.com \ Founded in 2013

Developer of an endpoint protection software designed to protect devices and servers against malware and threats. The company’s software unifies the detection, prevention, and remediation of threats initiated by nation-states and organized crime, enabling organizations to defend against advanced cyber threats.

The company raised $200 million of Series E venture funding in a deal led by Insight Partners on February 19, 2020, putting the company’s pre-money valuation at $900 million. Samsung Venture Investment, Qualcomm Ventures, Vista Equity Partners, Accel, The Westly Group, Third Point Ventures, Redpoint Ventures, UpWest Labs and Tiger Global Management also participated in the round. The funds will be used to continue accommodating customer demand and accelerate growth.

 

Credify \ credify.com \ Founded in 2018

Provider of entity reputation and services intended to enhance the relationships between consumers, producers, and ecosystems in which they connect. The company’s proof-of-trust protocol promotes transparency through fair and performance-based credibility metrics and ultimately achieves an increase in general reputation and service quality for the benefit of all, helping marketers to elevate trust in commerce, both off and online.

The company raised $1 million of seed funding from TP&P Technology, BEENEXT (Singapore) and Deepcore on February 17, 2020. The funds will be used to enhance the development of its suite of products, further localize its software development operations in South East Asia, and move ahead with its live client engagements.

 

RSA \ rsa.com \ Founded in 1982

Provider of software and hardware services for cyber security. The company offers services for cyber threat detection and response, identity and access management, online fraud prevention, and governance, risk and compliance.

Dell Technologies announced on February 18, 2020 that it was selling legacy security firm RSA for $2.075 billion to a consortium of investors led by Symphony Technology Group. Other investors include Ontario Teachers’ Pension Plan Board and AlpInvest Partners. The consortium will get RSA Archer, RSA NetWitness Platform, RSA SecurID, and RSA Fraud and Risk Intelligence, as well as the RSA security conference.

 

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Investor Highlight

 

Redpoint Ventures \ redpoint.com \ Founded in 1999

Founded in 1999, Redpoint Ventures is a venture capital firm headquartered in Menlo Park, California. The firm seeks to invest in the cloud infrastructure, consumer, marketplace, other, SaaS and software sectors.

Active Portfolio – 131

Investments (TTM) – 38

Med. Round Amount – $14.46M 

Med. Valuation – $69.14M

Exits – 226

 

Deal History

In the past year, Sound Ventures has invested in the following 5 identity companies:

Bravado

Cyral

Root Insurance

SentinelOne

Snowflake

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts