Market Insights

PIAM Woes: Friday Dealbook for 7/17/2020

This week’s deals feature two pure-play identity companies and a fraud and risk prevention provider. Global Data Consortium, a digital identity verification provider, raised $3.5 million to grow its team and expand its market coverage. Auth0, a developer-focused authentication platform, won $120 million for continued innovation and expansion. And Ravelin, a fraud detection provider, raised $20.6 million to bring its real-time platform to more markets around the world.

Twitter experienced a major snafu on Wednesday, during which a number of verified accounts of companies and individuals were compromised to promote a bitcoin scam. Turns out that the incident was an inside job and a classic case of misapplication of PIAM. Join us on Tuesday to learn how to avoid such mistakes in next week’s KNOW Identity Digital Forum, during which we’ll tackle the intersection of identity and security – check out the agenda and register here!

.

The Top Deals Covered by OWI this Week

Global Data Consortium \ globaldataconsortium.com \ Founded in 2010

Operator of digital identity verification platform intended to verify customer identity. The company’s platform includes a single access point to local, high-quality reference data via a cloud-based platform that deploys independent reference data in fast, low friction and affordable way to instantly verify the identities of customers, enabling clients with access to data across the globe. 

The company raised $3.5 million of angel funding in a deal with participation from Refinitiv and Village Capital. Global Data Consortium also confirmed a new partnership with Ireland-based multinational credit bureau Experian to integrate its platform within Experian’s digital identification service, bolstering customer onboarding to big banks and fintech companies across 45 countries. The company will use the funding to grow its team and expand its market coverage.

Auth0 \ auth0.com \ Founded in 2013

Developer of identity and authentication platform designed to verify users and tackle identity fraud. The company’s platform provides login and authentication for a bevy of device types in a variety of formats, including single-sign-on, multi-factor authentication and passwordless logins, enabling third party websites to securely verify the users who access their websites.

The company raised $120 million of Series F venture funding in a deal led by Salesforce Ventures on July 14, 2020, putting the company’s pre-money valuation at $1.8 billion. Telstra Ventures, Sapphire Ventures, WiL (World Innovation Lab), DTCP, Bessemer Venture Partners, K9 Ventures, Trinity Ventures, and Meritech Capital Partners also participated in the round. The funds will be used to fuel continued innovation and go-to-market expansion, responding to the global demand for a simple, extensible identity platform that provides secure access to any application.

Ravelin \ ravelin.com \ Founded in 2014

Developer of a fraud detection platform designed to meet existing and new threats in businesses. The company’s real-time platform combines machine learning and data science with a merchant’s own risk profiling to provide merchant-unique data and pin-point fraud detection, enabling businesses to add more customers with no more risk. 

The company raised $20.6 million (GBP 16.4 million) of Series C venture funding in a deal led by Draper Esprit on July 15, 2020. BlackFin Capital Partners, Passion Capital, and Amadeus Capital Partners also participated in the round. The funding will be used to further invest in innovations and reach more markets and industries globally.

.

Become an OWI Member and receive daily insights, behind-the-scenes deal info, access to research, exclusive events, and much more.

.

Investor Highlight

DTCP \ dtcp.capital \ Founded in 2015

Founded in 2015, DTCP is the venture investment and private equity arm of Deutsche Telekom based in Hamburg, Germany with additional offices in the United States, Israel, and South Korea. The firm seeks to invest in companies that operate in technology, media, and telecommunication sectors across the United States, Europe, and Asia.

Active Portfolio – 63

Investments (TTM) – 13

Med. Round Amount – $17.20M 

Med. Valuation – $161.39M

Exits – 30

Deal History

In the past year, DTCP has invested in the following 4 identity companies:

Auth0

Cynet

Heap

PerimeterX

.

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