Market Insights

Do You Believe in Magic: Friday Dealbook for 11/8/2019

November 8, 2019

You should, because two new unicorns have been sighted this week – with their latest funding rounds, Riskified and Coveo both surpassed the $1 billion valuation mark. Meanwhile, Deserve raised $50 million for its inclusive credit card platform, while Inrupt, founded by Sir Tim Berners-Lee, snagged $5 million to launch Solid. This week’s gargantuan rounds are a continuation of last quarter’s strong fundraising, indicating consistent growth in the identity space.

 

The Top Deals Covered by OWI this Week

 

Riskified \ riskified.com \ Founded in 2012

Developer of an e-commerce fraud-prevention technology designed to turn fraud management into a growth engine for online retailers. The company’s e-commerce technology offers machine learning algorithm and proprietary behavioral analytics that protects the bottom line and customer experience as well as offers an adaptive approach to stay ahead of the constantly changing fraud landscape, enabling merchants to protect themselves from fraud and offer better customer experience, lowering overhead and maximizing their revenue.

The company raised $165 million of Series E venture funding in a deal led by General Atlantic on November 5, 2019. Winslow Capital Management, Entrée Capital, Qumra Capital, Pitango Venture Capital and Fidelity Management & Research also participated in the round. The funds will be used to scale the company’s business domestically and internationally and to expand the company’s product footprint.

 

Deserve \ deserve.com \ Founded in 2012

Provider of financial services intended to provide access to fair credit products and tools to achieve financial independence. The company’s financial products include credit cards that use machine learning and alternative data to determine creditworthiness, enabling users to get access to fair credit without a credit history and build their credit score.

The company raised $50 million Series C venture funding in a deal led by The Goldman Sachs Group on November 4, 2019, putting the company’s pre-money valuation at $150 million. Sallie Mae, Aspect Ventures, Pelion Venture Partners, Accel and Mission Holdings also participated in the round.

 

Inrupt \ inrupt.com \ Founded in 2018

Developer of a web-based platform designed to manage and secure online personal data. The company is developing Solid, a platform meant to facilitate decentralization of data and allow users to control the storage, access, and usage of their data.

The company received EUR 5 million of development capital from Octopus Ventures on November 4, 2019. The funds will be used to bring the Solid platform to market and continue its development.

 

Become an OWI Member and receive daily insights, behind-the-scenes deal info, access to research, exclusive events, and much more.

 

Investor Highlight

 

Octopus Ventures \ octopusventures.com \ Founded in 2007

Description of Investor

Founded in 2007, Octopus Ventures is a Venture Capital firm based in London, England. The firm seeks to invest in healthcare, fintech, and deep tech. The firm has an additional office in New York, New York.

Active Portfolio – 88

Investments (TTM) – 25

Med. Round Amount – $5.11M 

Med. Valuation – $15.20M

# of Exits – 44

Deal History

In the past year, Octopus Ventures has invested in the following 7 identity companies:

Aire Labs

Digital Shadows

Elliptic

Inrupt

Ometria

ThirdEye Labs

vHive

 

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