Market Insights

Security for Biometrics: Friday Dealbook for 6/12/2020

This week kicked off with IBM’s announcement that it will no longer offer, develop, or research general-purpose facial recognition or analysis software, in part due to liability concerns over misuse by law enforcement. On the flip side, Invixium raised $3 million of venture funding for its biometric security products. Other major deals for the week include a cool $123 million for NS8 and another cool $100 million for DNAnexus.

The past few weeks’ events have us thinking hard about the limits that should be established and enforced around the use of facial recognition and biometrics as a whole, especially in light of events that have occurred in the past year alone (examples: Clearview AI, Motorola, bias in facial recognition). What do you think should be done, in light of the challenges we currently face?

The Top Deals Covered by OWI this Week

NS8 \ ns8.com \ Founded in 2016

Provider of a fraud prevention platform that combines behavioral analytics, real-time scoring, and global monitoring to help businesses minimize risk. The company’s patented scoring technology provides actionable data about the type, quality, and trustworthiness of transactions, which businesses can leverage to automate fraud management workflows to suit their individual needs.

The company raised $123 million of venture funding from Lightspeed Venture Partners and AXA Venture Partners on June 10, 2020. The funds will be used to expand its technology and product stacks and to continue expanding its coverage and network of partners.

DNAnexus \ dnanexus.com \ Founded in 2009

Developer of a biomedical informatics and data management platform designed to analyze DNA-sequencing data. The company’s platform helps researchers across a spectrum of industries like biopharmaceutical, bio agricultural, sequencing services, clinical diagnostics, government and research consortia to accelerate their genomics programs globally, enabling commercial and academic medical researchers to visualize and analyze big data system for DNA from a single, unified system.

The company raised $100 million of Series G venture funding in a deal led by Northpond Ventures and Perceptive Advisors on June 9, 2020. GV, Regeneron Pharmaceuticals, Foresite Capital Management, TPG Growth, and First Round Capital also participated in the round. The funds will be used to continue building out the platform and the use cases around it. 

Invixium \ invixium.com \ Founded in 2012

Developer of biometric security products designed to improve access control security and convenience for enterprises. The company’s biometric security products are designed and certified against IP65 standards, giving the assurance for deployments in rugged and harsh outdoor environments including extreme rain, wind, snow and dust and can also operate in a broad range of temperatures, enabling enterprises to enhance security, business value and benefits to organizations worldwide while providing convenient access to employees.

The company raised $3 million of venture funding in a deal led by Export Development Canada on June 8, 2020. McRock Capital, BDC Capital and Connecticut Innovations also participated in the round. The funds will be used to expand its sales and marketing efforts to address growth opportunities through a surge in demand for touchless and elevated body temperature detection.

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Investor Highlight

AXA Venture Partners \ axavp.com \ Founded in 2016

Founded in 2015, AXA Venture Partners is a venture capital firm based in Paris, France. The firm seeks to invest in companies operating in the enterprise software, fintech, insurtech, consumer technologies, and healthcare sectors.

Active Portfolio – 45

Investments (TTM) – 17

Med. Round Amount – $7.13M

Med. Valuation – $21.94M

# of Exits – 12

Deal History

In the past year, AXA Venture Partners has invested in the following 6 identity companies:

D-ID

HUB Security

Neura

NS8

SecurityScorecard

Silenccio

 

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