Market Insights

The Quest for Compliance: Friday Dealbook for 9/13/2019

September 13, 2019

This week saw big investments in the compliance segment, with ComplianceQuest raising $36 million and BigID raising $50 million. Compliant and privacy preserving martech is on the horizon, with Vim pulling in $24 million. This ties in with the themes of privacy by design and consumer control over data surrounding OWI’s forum in Toronto last evening. In the words of Dr. Ann Cavoukian, “If you just treat privacy as a function of regulatory compliance, you’ll do the bare minimum. Businesses need to think of privacy as a competitive advantage.” The regulatory reckoning is coming, and capital is flowing into companies helping organizations get their data houses in order.

 

The Top Deals Covered by OWI this Week

 

ComplianceQuest \ compliancequest.com \ Founded in 2013

Developer of enterprise platform intended to provide a suite of applications that support end-to-end quality management processes in the Life Sciences and Manufacturing verticals. The company offers quality and risk management across the entire value chain, from sourcing to manufacturing to supply-chain leveraging the built-in AI capabilities of the Salesforce platform, enabling customers to see further value by not just predicting actions, but also automating mundane, repetitive, and complex tasks.

The company raised $36 million of Series A venture funding in a deal led by Insight Partners on September 10, 2019. The company intends to use the funds to expand its commercial presence globally, enter new markets, expand the capabilities of the product suite, and scale its customer success group. Other undisclosed investors also participated in the round.

 

BigID \ bigid.com \ Founded in 2015

Developer of data-driven protection and privacy compliance platform designed to transform how enterprise protects and manage the privacy of personal data. The company’s platform uses advanced machine learning and identity intelligence to help enterprises better safeguard and assure the privacy of their most sensitive data, reducing breach risk and enabling compliance with emerging data protection regulations like the EU General Data Protection Regulation, enabling enterprises to safeguard and steward the most important asset organizations manage their customer data.

The company raised $50 million Series C venture funding in a deal led by Bessemer Venture Partners on September 5, 2019, putting the company’s pre-money valuation at $300 million. Comcast Ventures, Salesforce Ventures, ClearSky (North Palm Beach), Boldstart Ventures, Scale Venture Partners and SAP.iO Foundry also participated in the round. The funds will be used to meet the growing demand for the company’s technology, expand global sales and engineering and introduce new products for data privacy, data governance and protection.

 

Vim \ getvim.com \ Founded in 2015

Developer of a marketing platform intended to provide insights about users past and present actions, as well as predict their future ones. The company’s platform delivers contextually relevant, real-time interactions and personalized customer experiences, at scale, with powerful engagement tools that integrate with mobile marketing stack, enabling clients to be constantly updated of the consumer behavior pattern.

The company raised $24 million through the combination of Series B-1 and Series B-2 venture funding in a deal led by Optum Ventures and Premera Blue Cross on September 9, 2019, putting the company’s pre-money valuation at $120 million. GreatPoint Ventures and Sequoia Capital Israel also participated in the round. The company will use the funding to fuel Vim’s expansion across new U.S. markets and accelerate its product development and hiring efforts.

 

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Investor Highlight

 

GreatPoint Ventures \ gpv.com \ Founded in 2015

Description of Investor

GreatPoint Ventures is a venture capital firm that typically leads Series As and Series Bs in a broad range of areas including enterprise technology, marketplaces, healthcare, wellness, biotech, etc. The firm is managed by serial entrepreneurs and former Fortune 500 executives and is based in San Francisco, California.

Active Portfolio – 35

Investments (TTM) – 13

Med. Round Amount – $15.00M 

Med. Valuation – $51.79M

# of Exits – 6

Deal History

In the past year, GreatPoint Ventures has invested in the following 6 identity companies:

Vim

Even Financial

Recogni

Spring Labs

Phil

K2 Cyber Security

 

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