Market Insights

May’s Last Hurrah: Friday Dealbook for 5/29/2020

A short week didn’t stop the deals from flowing, with Mati raising $5 million and PXL Vision winning $4.8 for identity verification, and D-ID for identity and privacy protection. Meanwhile, social media giants diverged on their approaches for user content moderation, with Facebook shutting down its attempts to prevent divisiveness and Twitter fact-checking President Trump for the first time. The week wrapped with executive action against Section 230, marking the start of yet another showdown between Big Tech and the federal government. It seems like May is going out with a bang.

In other news, we’ll be hosting our eCommerce Digital Forum on Tuesday, June 2. Check out our upcoming events here!

The Top Deals Covered by OWI this Week

Mati / getmati.com / Founded in 2017

Developer of an application platform intended to build a global verified user identity, offer an access point to the digital economy, and standardize it across use cases and countries. The company develops computer vision technology that recognizes the user, and any document that is required, seamlessly with near 100% accuracy, on any device, application, or website.

The company raised $5 million of venture funding from Arena Ventures, Dorm Room Fund, and Kima Ventures on May 26, 2020, putting the company’s pre-money valuation at $7 million. Spero Ventures also participated in the round.

PXL Vision / pxl-vision.com / Founded in 2017

Provider of automated identity verification solutions intended to be used by businesses for customer onboarding. The company offers a cross-platform software solution for a secured identification process powered by the latest developments in computer vision and machine learning, enabling entities to exist and transact online without the threat of facing any identity frauds, thus bringing trust to digital interactions between businesses and people by enabling true digital identities.

The company raised $4.8 million (CHF 4.6 million) in a seed financing round to expand its technology and grow internationally. The financing round was led by SIX Fintech Ventures. Other investors include ZKB, High-Tech Gründerfonds, Arab Bank and the experienced business angels Beat Schillig and David Studer.

D-ID / deidentification.co / Founded in 2017

Provider of an identity protection technology intended to protect the privacy of users. The company’s technology protects images from unauthorized, automated face recognition by processing them in a way that causes face recognition algorithms to fail to identify the subject in the image, while maintaining enough similarity to the original image for humans not to notice the difference, enabling companies, security agencies. and governments to resolve their privacy concerns and facilitate risk-free usage of personal data.

The company raised $13.5 million of Series A venture funding in a deal led by AXA Venture Partners on May 26, 2020. Omron Ventures, Hyundai CRADLE, Mindset Ventures, Maverick Ventures, Pitango Venture Capital, REDDS Capital, Y Combinator, and AI Alliance also participated in the round. The funding will be used to increase its sales and marketing activities and continue investing in research and development.

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Investor Highlight

Mindset Ventures / mindset.ventures / Founded in 2016

Mindset Ventures is an early-stage venture capital firm based in São Paulo, San Francisco, and Tel-Aviv. The firm invests in B2B startups based in the U.S. and Israel and help them expand to Latin America.

Active Portfolio – 37
Investments (TTM) – 6
Med. Round Amount – $5.00M
Med. Valuation – $21.20M
# of Exits – 6

Deal History

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

1touch.io

D-ID

Sepio Systems

Turing

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