Market Insights

Pass Me the Remote(-access Security): Friday Dealbook for 5/1/2020

To no one’s surprise, investment in the healthcare space continues. Medici raised $25 million to expand its telemedicine platform, while Particle Health raised $12 million to ensure the privacy of digital health data. Meanwhile, Secret Double Octopus looped in $15 million to expand its authentication platform as demand surges for remote-access security.

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The Top Deals Covered by OWI this Week

Secret Double Octopus / doubleoctopus.com / Founded in 2009

Developer of a security authentication platform designed to replace keys and passwords. The company’s platform offers high assurance access to a wide range of resources including workstations, networks, cloud, mobile, and legacy applications by replacing traditional passwords with simple, secure password-free authentication, enabling businesses to conduct and maintain their privacy in an efficient manner.

The company raised $15 million of Series B venture funding from Liberty Ventures Group, KDDI Ventures Program and Global Brain on April 28, 2020. Sony Financial Ventures, Jerusalem Venture Partners, Iris Capital, Benhamou Global Ventures and Yaniv Tal also participated in the round. The funds will be used to meet a “rapidly growing need” for remote-access security, especially as enterprise employees are working from home during the coronavirus pandemic.

Particle Health / particlehealth.com / Founded in 2017

Developer of a platform designed to allow patients and consumers to share their medical information. The company’s platform leverages blockchain technology to enable a single health record-tying together previously disparate information from a patient’s various doctors and yielding valuable data insights in the process, enabling clients to better serve their patients, policyholders or customers.

The company raised $12 million of Series A venture funding in a deal led by Menlo Ventures on April 28, 2020. Company Ventures, Story Ventures, Permian Bank Capital, Collaborative Fund also and other undisclosed investors participated in the round.

Medici / medici.md / Founded in 2016

Developer of a virtual healthcare platform designed to connect healthcare providers and their patients from anywhere at any time. The company’s platform is integrated with a mobile application which provides access to healthcare providers, from physicians to veterinarians to nutritionists by text, video and phone call, enabling clinicians to extend care and get paid without the extra overhead or administrative burdens.

The company raised $24 million of Series B angel funding from Barry Sternlicht, Howard Jenkins, and Ken Griffin on April 27, 2020. Natie Kirsh also participated in the round. The funding raised will be used to accelerate the company’s growth.

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Investor Highlight

KDDI Ventures / kddi.com / Founded in 2012

KDDI Ventures Program is the corporate venture capital arm of KDDI. There are two different programs that are offered. First, KDDI Open Innovation Fund, a corporate venture capital for early and middle-stage startups that works with Global Brain Corporation. Second, KDDI Infinity Labo is an incubation program that selects five companies every semester and provides three months of support. The firm seeks to support technology startups in Japan with its incubation program, and in both Japan and the United States through the Open Innovation Fund.

Active Portfolio – 59

Investments (TTM) – 18

Med. Round Amount – $5.85M 

Med. Valuation – $65.81M

Exits – 31

Deal History

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

Deeping Source

GTRIIP

Repro

Secret Double Octopus

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