Market Insights

ZeroFOX raises $40M, Deep Instinct nets $32M: Friday Deal Book for 7/14/2017

One World Identity’s Friday Deal Book provides you with a weekly roundup of partnerships, funding, and product announcements in the identity industry. Here’s a quick peek at what you need to know for the week ending July 14, 2017.

Cybersecurity shop Deep Instinct raises $32 million Series B
The round was led by CNTP, and joined by strategic investors including NVIDIA, Coatue Management, and existing investors. Palo Alto based Deep Instinct provides an endpoint protection platform to detect malicious behavior across devices. They use deep learning to monitor and identify malware, including zero-day threats. [Read more]

Social media risk monitoring startup ZeroFOX raises $40 million Series C
The round was led by Redline Capital Management and Silver Lake Waterman, with participation from existing investors NEA, Highland Capital Partners and Core Capital. ZeroFOX provides protection against phishing attacks, social media account compromise and data exfiltration. The company will use the funds to drive global expansion and continued product development. ZeroFOX has received a total of $88 million in funding to date. Cybersecurity remains a strong area of investment and acquisition, especially in areas beyond traditional network security. As companies continue to embrace social media, bring your own device, and distributed workforce trends, attack surfaces and modalities continue to evolve. [Read more]

Third party vendors responsible for data breaches at Verizon, Four Seasons Hotels, and Trump Hotels
Nearly 14 million Verizon subscriber records were leaked from an Amazon storage server controlled by an employee of Nice Systems, an Israeli-based customer engagement and compliance company. Data included customer names, cell phone numbers, and account PINs of customers who had called Verizon customer service. Verizon uses Nice as a third party vendor to analyze customer service interactions to improve customer service. Earlier this year, hotel reservations provider Sabre’s reservations system was accessed by an unauthorized party. Guests at Four Seasons, Trump Hotels and Hard Rock Hotels were affected. The tremendous growth of software as a service has enabled enterprises to integrate with increasingly specialized vendors. This, however, has resulted in customer data, including sensitive identity data, getting passed across vendors and stored in multiple locations. As a result, vendor audit and penetration testing services are also on the rise. [Read more: 1, 2]

European consortium to test digital identity for cross border banking 
The pilot will allow a the use of a citizen’s national digital identity from France to open a bank account in the UK. Consortium members include HSBC, Barclays, the UK Government Digital Service (GDS), Orange, OT-Morpho and the Open Identity Exchange (OIX UK). The Project is partially financed by the European Union’s Connecting Europe Facility. Mobile Connect, GSMA’s authentication process, will be leveraged to allow users to request a digital identity that will then be validated under European Electronic Identity and Signature standards (eIDAS). Europe’s push for seamless transactions under the European Single Market and alignment of identity standards across its member states through eIDAS, is driving growth in digital identity interoperability initiatives. [Read more]