Market Insights

Holiday Season Fundraising: Friday Dealbook for 12/20/2019

Happy holidays OWI readers, and welcome to the last Friday Dealbook of 2019. As expected, the deal flow is slowing down as the year comes to a close but that didn’t stop LogMeIn from announcing their agreement to be acquired by Francisco Partners and Evergreen for $4.3B. It will also be an exciting holiday season for Osano, a risk and compliance startup, for raising $5M and HID for being selected by Argentina to support the rolling out of their national identity program.

 

The Top Deals Covered by OWI this Week

 

LogMeIn \ logmein.com \ Founded in 2003

The Budapest-founded startup, LogMeIn, announced it will be taken private by Francisco Partners Management and Elliot Management’s Evergreen for $4.3B USD. The company is well known in the digital identity community for its popular password manager LastPass. As of 2018, the product had 16 million users and gain notoriety after Epic Games listed them as one of the preferred password managers supporting their MFA requirement for their hit-game Fortnite.

LogMeIn is also well-known for “GoTo” communications product suite which enables applications such as online meetings, chat rooms, and virtual communications. After an 11 year run on the NASDAQ, LogMeIn’s shareholders will be recipients of a $86.05 cash per share payout in mid-2020.

 

Osano \ osano.com \ Founded in 2018

The Austin-based startup, Osano, announced Series A funding of $5.4M USD from seed investors LiveOak Venture Partners and Next Coast Ventures. This latest round brings their total amount raised to $8.4M USD. 

Osano’s user-centric solution is a privacy platform that helps businesses remain compliant with dynamic data privacy laws such as CCPA and GDPR. As the international data privacy landscape becomes more diverse and nuanced, companies are struggling to keep up to speed, and are turning to third-parties for assistance.

Osana plans to use the additional capital to fuel team growth and continue product development.

“We are proud to continue into the next round with our original investors,” said Arlo Gilbert, Osano’s co-founder and chief executive. “Heading into 2020, we are moving quickly to add talent to our growing team and to deepen Osano’s position as a leading data privacy platform.”

The startup is currently working with over 750,000 companies and is currently working to secure over 3.5 million websites.  

 

HID \ hidglobal.com \ Founded in 1991

After fierce competition, the government of Argentina announced this past Tuesday that they had selected HID Global’s goID citizen identity technology to support its mandatory National Digital Identity Document. 

The National Identity credential will be stored in the Mi Argentina app, which was developed by the Ministry of Modernization to given citizens a vehicle to easily access their health information, request appointments, and gain access to governmental services. The document will be securely stored on-device in user smartphones and can be accessed in the absence of network connectivity.

The National Identity Document, and partnership with HID, is the latest move made by the government of Argentina in its ongoing effort to modernize its digital infrastructure.  

“The Government of Argentina is leading the way in bringing the convenience and security of mobile identity to its citizens,” said José D’Amico, director of Renaper. “This innovative application is not only easy to get, but we also believe this could be the first step in digitizing identity across the government in Argentina and potentially other countries in years to come.”

It will be interesting to observe Argentina’s experience with the National Identity launch, and what impact it will have in other countries within the region. 

 

Investor Highlight

 

LiveOak Ventures \ liveoakvp.com \ Founded in 2013

Founded in 2013, LiveOak Venture Partners is a venture capital firm based in Austin, Texas. The firm prefers to invest in companies operating in the information technology and tech-enabled services.

Total Investments – 62

Active Portfolio – 24

Investments (TTM) – 13

Med. Round Amount – $5.8M 

Med. Valuation – $19.58M

 

Deal History

In the past year, LiveOak Venture Partners has invested in the following 5 identity companies:

Osano

Cyber Fortress

Razberi Technologies

TrustRadius

Hive9

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