Market Insights

User-Centricity and Safety: Friday Dealbook for 10/11/2019

October 11, 2019

This week’s featured investments demonstrate the deeply impactful ways that innovative digital identity solutions shape both the physical and online world. NuCypher and HYPR, platforms that help protect user privacy and safety, raised $10 million and $18.3 million of funding, respectively. RapidSOS raised $25 million to help connect first responders to essential emergency data.

Join OWI next week in San Francisco as we discuss how companies can build Trust and Safety at Scale to protect their customers and ensure the integrity of their platforms.

 

The Top Deals Covered by OWI this Week

 

NuCypher \ nucypher.com \ Founded in 2015

Provider of a security and encryption platform for distributed systems. The company provides a security and encryption platform that offers data-centric encryption designed to enable inter- and cross-organizational granular sharing of data in a secure and auditable way based on existing AD, LDAP, and Kerberos access policies, enabling companies to bring big data projects into compliance with internal security policies and regulatory requirements, including PCI, HIPAA, NY DFS Rule 500, PSD2, and GDPR.

The company raised $10M of funding in a deal led by Polychain Capital on October 7, 2019. Y Combinator, Bitmain, Bitfury, Arrington XRP Capital, Notation Capital, DHVC, Hashed, and CoinFund also participated in the round. The investors have agreed to lock in tokens for the purpose of staking nodes in the NuCypher software. The new funding will be used to fund network stress-testing and development.

 

HYPR \ hypr.com \ Founded in 2014

Developer of a biometric security platform created to ensure user data is kept private across the IoT. The company’s platform eliminates the need for a centralized credential store to reduce the risk of an enterprise breach and decentralizes authentication to ensure that personal credentials such as biometrics, PINs and passwords always remain safe on users’ desktop and mobile devices, providing enterprises with digital authentication methods without any password authentication.

The company raised $18.3 million of Series B venture funding in a deal led by Comcast Ventures, putting the company’s pre-money valuation at $35 million. MasterCard, Triphammer Ventures, RTP Ventures, Boldstart Ventures, RRE Ventures, Samsung NEXT Ventures, .406 Ventures, Alumni Ventures Group, and Allen & Company also participated in the round. The company intends to use the funds to accelerate growth, new product delivery and expand customer success operations across its enterprise customer base.

 

RapidSOS \ rapidsos.com \ Founded in 2012

Developer of an advanced emergency technology platform designed to link Internet of Things (IoT) devices directly to 9-1-1 communications and first responders to improve emergency response. The company’s platform provides precise location and complete emergency data through existing PSAP software with seamless integration between call takers, dispatchers and mapping software, providing emergency responders with access to in-depth, life-saving data.

The company raised an additional $25 million in Series B funding in a round led by Energy Impact Partners. The company will use the funds to expand its partnerships with public safety agencies, public safety software providers, and IoT device companies.

 

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

 

Investor Highlight

 

DHVC \ dh.vc \ Founded in 2013

Description of Investor

DHVC is a venture capital firm that invests primarily in early-stage and growth-stage companies. The firm prefers to invest in companies operating in the artificial intelligence, mobile internet, big data, blockchain, enterprise software and robotics sectors. It is headquartered in Palo Alto, California.

Active Portfolio – 148

Investments (TTM) – 14

Med. Round Amount – $12.00M 

Med. Valuation – $45.82M

# of Exits – 15

Deal History

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

Copper

Novo Vivo

NuCypher

Onchain Custodian

Oxygen

Rippling

StrongSalt

 

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