Market Insights

Magic and Onions: Friday Dealbook for 6/5/2020

This week saw Vetty raise $4 million for online background screening and Magic raise $3.9 million for passwordless login. Meanwhile, Thycotic Software expanded its offerings with the acquisition of Onion ID.

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The Top Deals Covered by OWI this Week

Vetty \ vetty.co \ Founded in 2015

Developer of an online background screening platform designed to help companies conduct background checks of employees. The company’s platform offers an automated onboarding and background system which utilizes deep learning bots and blockchain that delivers fast, affordable and highly personalized background checks, enabling companies to hire employees with full confidence.

The company raised $4 million of venture funding in a deal led by 3Lines Venture Capital on June 2, 2020. The company intends to use the funds to expand operations and its business reach. In conjunction with the funding, Krishna Kunapuli, a General Partner at 3Lines, will join the Vetty Board of Directors.

Magic \ magic.link \ Founded in 2018

Developer of software development kits (SDKs) intended to end the era of passwords. The company offers SDKs that allow developers to build applications with fast, customizable, passwordless login – with future-proof crypto and identity technology with just a few lines of code, enabling developers to add passwordless authentication in their applications.

The company raised $3.9 million through a combination of Seed and Seed 1 funding in a deal led by Placeholder Capital, putting the company’s pre-money valuation at $11 million. Lightspeed Venture Partners, Social Capital, Cherubic Ventures, Refactor Capital, Unusual Ventures, Volt Capital, SV Angel, Naval Ravikant, Guillermo Rauch, Roham Gharegozlou and Agile Angel also participated in the round. The funds will be used to accelerate the global adoption of passwordless authentication, introduce new hardware and authenticator app-based logins and liberate identity from the control of centralized tech oligarchs.

Onion ID \ onionid.com \ Founded in 2015

Developer of software designed to control security issues of applications and servers. The company’s security software provides access through infrastructure, identity, password, and license management and helps to refresh employee’s account credentials, enabling enterprises to work in a customizable manner.

The company was acquired by Thycotic Software for an undisclosed amount on June 2, 2020, as a means of expanding Thycotic Software’s product portfolio. Following the acquisition, Onion ID will operate under the Thycotic brand and leadership.

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Investor Highlight

3Lines Venture Capital \ 3lines.vc \ Founded in 2016

Founded in 2016, 3Lines is a US-based venture capital firm. The firm seeks to invest in early-stage companies in the US and India operating in artificial intelligence, internet of things, cybersecurity, distributed ledger technologies, cloud edge, and enterprise software sectors.

Active Portfolio – 18

Investments (TTM) – 9

Med. Round Amount – $3,53M 

Med. Valuation – $9.50M

Exits – 1

Deal History

In the past year, 3Lines Venture Capital has invested in the following 4 identity companies:

CaliberMind

Cyr3con

Swimlane

Vetty

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