Market Insights

Mid-May Mayhem: Friday Dealbook for 5/15/2020

Can you believe we’re already halfway through May!? Thankfully, this strange fast yet slow passage of time hasn’t put a damper on investment in the digital identity space. This week, our deals differ in both industry and variety. Idaptive was acquired by CyberArk for $70 million, while Idex Biometrics sold a significant stake through a private placement. Meanwhile, Singapore-based Dathena raised a $12 million Series A round for its data protection and privacy tools.

Understandably, our current situation has shaken the venture capital world, funding rounds slowing in the face of uncertainty. However, one upside of the situation is the continued evolution of digital identity in the face of an increasingly remote and disparate workforce. Digital identity and its many use cases are likely to continue picking up steam in both adoption and funding.

The Top Deals Covered by OWI this Week

Idaptive \ idaptive.com \ Founded in 2018

Provider of cyber and data protection services. The company secures access to applications and endpoints by verifying every user, validating their devices, and intelligently limiting their access, enabling organizations to secure themselves from data breaches through a zero trust approach.

The company was acquired by CyberArk Software (NAS: CYBR) for $70 million on May 13, 2020.

Idex Biometrics \ idexbiometrics.com \ Founded in 1996

IDEX Biometrics ASA is a fingerprint imaging, recognition, and authentication technology company. It is engaged in developing and commercializing fingerprint sensor products targeted at the mobile, smart and ID card, and the Internet of Things markets. IDEX provides hardware and software fingerprint solutions suitable for embedding into products to strengthen security and enhance user-friendliness products. Its product portfolio includes Biometric’s fingerprint sensors, Biometrics’ fingerprint modules, Enrollment solutions, and others. The company operates in Europe, the Middle East, and Africa, America, and Asia.

The company (OSL:IDEX) sold a 9.1% stake to undisclosed investors for NOK 105 million on May 11, 2020 through a private placement. The net proceeds from the private placement will be used to fund growth opportunities and for general corporate purposes.

Dathena \ dathena.io \ Founded in 2016

Operator of a deep-tech company intended to provide artificial intelligence-powered data protection and privacy management tools for global enterprises. The company’s platform uses machine learning and artificial intelligence for data classification, management and governance which identifies and classifies all documents across an organization’s system, enabling business clients to protect, retain or delete documents according to customizable business-centric rules.

The company raised $12 million of Series A venture funding in a deal led by Jungle Ventures on May 13, 2020. MS&AD Ventures, CapHorn Invest, SEEDs Capital, and CerraCap Ventures also participated in the round. The funding raised will be used to support Dathena’s expanding R&D efforts, along with the hiring of NYC-based staff across sales, marketing, and customer success functions to serve the company’s growing North American client base. The funding will also be used to expand Dathena’s co-sell partnership with Microsoft in the United States, which is targeted to Azure Cloud and Microsoft 365 customers who need to comply with new data privacy regulations like the California Consumer Privacy Act.

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Investor Highlight

MS&AD Ventures \ msad.vc \ Founded in 1990

Founded in 1990, MS&AD Ventures is a corporate venture capital firm of MS&AD Insurance Group Holdings based in Menlo Park, California. The firm seeks to invest in the information technology sector such as big data, cryptocurrencies, internet of things, cybersecurity, SaaS, augmented and virtual reality.

Active Portfolio – 69

Investments (TTM) – 17

Med. Round Amount – $7M 

Med. Valuation – $44.77M

Exits – 12

Deal History

In the past year, MS&AD Ventures has invested in the following 7 identity companies:

AISing

ClearedIn

Dathena

Lucideus

Node

Sproutt

Taiger

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