Market Insights

Products Have Identities, Too

November 16, 2018

Outside of our New York City office, a delivery truck pulls up once a day, empties its packages on the street and bundles them into categories. We assume this method is meant to create efficient distribution groupings because smaller vehicles come throughout the day to take bundles away. Is it weird they use the street and not a packaging warehouse? Does it make me question where my packages have been before they arrive at my doorstep? Do I have an extra large hand sanitizer available on my kitchen counter? Yes to all the above.

This company’s antics reminded me of the persisting identity challenges that supply chain and logistics companies are looking to solve. The problem of preserving information on the product’s journey from beginning to end in a secure way is one we can surely figure out right?

Since 2016, we have seen a significant increase in investment in companies focused on using Identity of things (‘IDoT’) to increase the effectiveness and efficiencies of supply-chain operations.

The increase in funding can be attributed to the arrival of new technologies – helping make everything from sensors to computing cheaper, smaller, and more intelligent.

The impact of new technologies is fueling rapid growth in capital investments into companies trying to solve identity challenges for physical objects. This week two of the three deals we highlight below are related to IDoT.

OWI is continuing to monitor the IDoT industry, as well as the adoption rates of these new technologies.

 

The Top 3 Weekly Deals Covered by OWI this Week.

 

Dust Identity \ https://dustidentity.com  \ Founded in 2015

Developer of nano-technology designed to create an unclonable identity layer on any object. The company’s technology utilizes diamond crystals to secure identification of physical objects by ensuring trusted data and verifiable products for object identity and provenance, enabling companies to revolutionize supply chain security via a unique identity by linking each of them to its supply chain transactions.

Lucid Green \ www.lucidgreen.io \ Founded in 2018

Provider of a cannabis supply chain platform intended to help brands access a direct-to-consumer and direct-to-budtender marketing channel. The company’s platform offers an immutable blockchain ledger, digital identity tracking from seed-to-consumer-experience and innovative and efficient consumer and budtender communication channels to solve trust and transparency problems, enabling brands to deliver infinitely scalable budtender training down to the SKU-level, including brand-derived product information, potency, potential effects as well as an independent, clear view into the testing and handling details of each product.

The company raised $1 million of seed funding from undisclosed investors on November 9, 2018. The funding will be used to develop a platform that enables a highly relevant digital experience by seamlessly interacting with physical products. Previously, the company raised $701,250 of angel funding from Phyto Partners and other undisclosed investors on August 30, 2018.

Nova Leah \ www.novaleah.com \ Founded in 2015

A developer of a medical device security software designed to provide cyber security solutions across the product lifecycle. The company’s security system accurately tracks risks for each device, highlights known vulnerabilities, recommends solutions, and provides a feedback mechanism between manufacturers and hospitals within a fully traceable framework, offering manufacturers and healthcare providers with cyber security compliance solution for medical devices.

The company raised EUR 2.25 million of venture funding in a deal led by Kernel Capital (Ireland) on November 8, 2018. Suir Valley Ventures and Enterprise Ireland also participated in the round. The funds will be used by the company to expand its team, further develop the product roadmap and build its presence in the marketplace. Previously, the company was awarded EUR 10,000 Grand Prix prize at the National Startup Awards on May 30, 2018.

 

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Investor Highlight

Andreessen Horowitz \ www.a16z.com \ Founded in 2009

Andreessen Horowitz is a venture capital firm that is headquartered in Menlo Park, California and was founded in 2009. The firm specializes in seed, early stage, mid stage, later stage and growth stage investments. The firm seeks to invest in media, software, mobile, internet, infrastructure and technology sectors.

Active Portfolio – 290

Investments – 83

Med. Round Amount – $12.00M

Med. Valuation – $68.11M

# of Exits – 166

Deal History

In the past year, Andreessen Horowitz has invested in the following 11 identity-related companies:

*Data acquired using PitchBook with proprietary keyword searches set by OWI Analysts