Cybersecurity companies saw a record number of funding deals last year and on a quarterly basis Q1’17 was the most active quarter for deals to private cybersecurity companies over the last five years. One increasingly hot area within the cybersecurity industry is Identity Management. In fact, in line with the overall industry, cybersecurity startups with a core product or service in Identity Management secured more funding deals in Q1’17 than any quarter since 2012.
As the number and severity of cyber attacks continues to rise, the need to secure and authenticate data associated with identity is paramount. Likewise, companies are offering a range of products and services in Identity Management aimed at targeting fraudsters, managing login credentials, authenticating users’ devices, and more.
We used CB Insights data to identify over 60 leading private companies in Identity Management and categorized them into the five main categories in which they operate.
We define the Identity Management space as cybersecurity companies that have a core product or service that determines a user’s identity by authenticating their credentials, and authorizes users for appropriate access to digital resources. Some of the companies on our Identity Management market map also offer products for other areas of cybersecurity.
Q1’17 sets record for deals to Identity Management companies
Cybersecurity startups in Identity Management secured over 30 funding deals in Q1’17, the most deals to these companies on a quarterly basis since at least 2012. In terms of dollars raised in Q1’17, Identity Management companies secured the third highest quarterly funding total over the last five years.
The top three deals in Identity Management in Q1’17 went to Verisys ($73M Growth Equity), Bitglass ($45M Series C), and Transmit Security ($40M Angel).
Market map
Click on the image below to enlarge. Not all of the categories in our map are mutually exclusive. This market map is not meant to be exhaustive of companies in the space.
Category Breakdown
Anti Fraud Solutions: Startups in this category help secure online transactions by identifying fraudsters. For example, the company FeedZai utilizes machine learning algorithms to proactively detect fraud in financial transactions. Similarly, companies like Socure can detect fraudulent users on websites and in mobile applications also using machine-learning algorithms. Notably, over half (52%) of the companies in this category utilize a form of machine learning to fight fraud. Other types of companies in this category include GreatHorn, which helps secure cloud-based communication systems by detecting and stopping spearphishing attacks that rely on an attacker falsifying his or her identity to acquire a user’s personal data. Startups like Elliptic can trace a fraudster’s transaction activities through the blockchain to give law enforcement agencies and financial institutions the ability to investigate and evaluate suspicious activity in cryptocurrencies such as bitcoin.
Credentials Management: Startups such as Dashlane provide a secure digital wallet to allow users to manage passwords, credit cards, IDs, and other information related to identity. Similarly, companies like ID.me offer an identity gateway that allows individuals to tie their legal identity to a digital login that is accepted across multiple websites, eliminating the need to create a new login or to verify identity at each site individually. Others include Seklarity, which provides organizations visibility into the state of credentials in their network. Startups like Secret Double Octopus offer a range of cybersecurity products related to identity and credentials management that include multi-factor authentication, such as using the combination of a user’s cellphone, computer, and login credentials to verify identity.
Mobile / Device Authentication: Startups including Duo Security can help organizations check the security health of a user’s mobile phone and devices and block access to a network by devices that are identified as risky. Others include MedCrypt, which enables healthcare organizations to manage all of the digital keys needed for users to appropriately access medical devices.
Privileged Access Management: Companies like Pythian offer a privileged session management solution to secure access to enterprise systems, cloud infrastructures, databases, servers, and applications by enabling users to monitor and record in real-time all privileged activity performed across an IT infrastructure. Other companies include Avecto, which specializes in network endpoint security and offers a product for managing user account privileges.
IDaaS: These companies are all primarily cloud-based offerings through a software-as-a-service model, and they specialize in identity, such as: provisioning of user credentials for login, authentication of users, single-sign-on portals, and more. Ping Identity offers an IDaaS solution that enables organizations to deliver secure cloud single sign-on (SSO) and multi-factor authentication for users with just one username and password. Companies such as Auth0 enable developers and IT staff to easily and securely set up social and enterprise identity provider registration and login, username and password, SSO, multi-factor authentication, password-free authentication, and more.
See the full company list below:
| Company | Select Investors | Category |
|---|---|---|
| Pindrop Security | Andreessen Horowitz, capitalG, Citi Ventures | Anti-Fraud |
| ThreatMetrix | Silicon Valley Bank, August Capital, CM Capital | Anti-Fraud |
| Verisys | Cressey & Company, Spectrum Equity Investors | Anti-Fraud |
| Guardian Analytics | Foundation Capital, Split Rock Partners, Sutter Hill Ventures | Anti-Fraud |
| Sift Science | Insight venture Partners, Spark Capital, Union Square Ventures | Anti-Fraud |
| Jumio | Andreessen Horowitz, Citi Ventures, Centana Growth Partners | Anti-Fraud |
| Agari Data | Alloy Ventures, Battery Ventures, First Round Capital | Anti-Fraud |
| Bangsun Technology | M Fund, Legend Capital, F&G Venture | Anti-Fraud |
| ID Experts | Trident Capital Cybersecurity, Peloton Equity, BlueCross BlueShield Venture Partners | Anti-Fraud |
| Trulioo | American Express Ventures, BDC Venture Capital, Blumberg Capital | Anti-Fraud |
| FeedZai | Citi Ventures, ES Ventures, Sapphire Ventures | Anti-Fraud |
| Socure | AlphaPrime Ventures, Caerus Investment Partners, ff Venture Capital | Anti-Fraud |
| Shift Technology | DN Capital, First Round Capital, Founder Collective | Anti-Fraud |
| Simility | Accel Partners, Array Ventures, The Valley Fund | Anti-Fraud |
| Elliptic | Digital Currency Group, KRW Schindler Private Ventures, Octopus Ventures | Anti-Fraud |
| SecuredTouch | Eshbol Ventures, Rafael Development Co., Swarth Group | Anti-Fraud |
| Ravelin | Amadeus Capital Partners, Barclays Accelerator, Playfair Capital | Anti-Fraud |
| Intensity Analytics | Undisclosed | Anti-Fraud |
| VU Security | INICIA, NXTP Labs | Anti-Fraud |
| GreatHorn | ff Venture Capital, RRE Ventures, SoftTech VC | Anti-Fraud |
| Veridu | Callatay & Wouters Ventures, Force Over Mass Capital, Global Risk Technologies | Anti-Fraud |
| Fortscale Security | Blumberg Capital, CME Ventures, Evolution Equity Partners | Anti-Fraud |
| VChain Technology | Cyber London Accelerator, Hangar 51, International Airlines Group | Anti-Fraud |
| Dashlane | Bessemer Venture Partners, FinTech Innovation Lab, FirstMark Capital | Credential Mgmt. |
| ID.me | Blu Venture Investors, BoxGroup, CIT GAP Funds | Credential Mgmt. |
| SecureAuth | Undisclosed | Credential Mgmt. |
| Confident Technologies | Undisclosed | Credential Mgmt. |
| Trusona | Kleiner Perkins Caufield & Byers | Credential Mgmt. |
| Secret Double Octopus | Benhamou Global Ventures, Iris Capital, Jerusalem Venture Partners | Credential Mgmt. |
| Virgil Security | Baltimore Angels, Bloomberg Beta, Blu Venture Investors | Credential Mgmt. |
| my1login | Par Equity, Scottish Investment Bank, TRI Capital | Credential Mgmt. |
| Seklarity | Undisclosed | Credential Mgmt. |
| Skeyecode | 500 Accelerator | Credential Mgmt. |
| nymi | Export Development Canada, FundersClub, Gulf Islamic Investments | Credential Mgmt. |
| BIOWATCH | AGIRE, Foundation for Technological Innovation, Kickstart Accelerator | Credential Mgmt. |
| Futurae | F10, Venture Kick | Credential Mgmt. |
| OneLogin | CRV, Scale Venture Partners, Social Capital | IDaas |
| Ping Identity | Appian Ventures, Berkus Technology Ventures, DFJ Growth Fund | IDaaS |
| Centrify | Accel Partners, BDCA Venture, Fortinet | IDaaS |
| Auth0 | Bessemer Venture Partners, Founders Co-op, K9 Ventures | IDaaS |
| BioCatch | Blumberg Capital, Centillion, JANVEST Technologies | IDaaS |
| MIRACL | NTT DoCoMo Ventures, Octopus Ventures, Pentech Ventures | IDaaS |
| SimplifIDe | Undisclosed | IDaaS |
| Civic Technologies | Blockchain Capital, Digital Currency Group, Founder Collective | Mobile / Device Authentication |
| MoQom | Pinemount | Mobile / Device Authentication |
| HYPR | BOLDstart Ventures, Mesh Ventures, RTP Ventures | Mobile / Device Authentication |
| Payfone | American Express, American Express Ventures, BlueCross BlueShield Venture Partners | Mobile / Device Authentication |
| Sonavation | Undisclosed | Mobile / Device Authentication |
| Nok Nok Labs | DaouKiwoom Group, DCM Ventures, Docomo Capital | Mobile / Device Authentication |
| Duo Security | Benchmark, Google Ventures, Lead Edge Capital | Mobile / Device Authentication |
| Transmit Security | Mickey Boodaei, Rakesh Loonkar | Mobile / Device Authentication |
| Vkansee Technology | Aviation Industry Corporation of China, Infotech Ventures, Shenzhen Qianhe Capital Management Co. | Mobile / Device Authentication |
| DeviceAuthority | Alsop-Louie Partners | Mobile / Device Authentication |
| Uniken | Exfinity Venture Partners, FinTech Innovation Lab, Nexus Venture Partners | Mobile / Device Authentication |
| MedCrypt | Safeguard Scientifics | Mobile / Device Authentication |
| Smile Identity | 500 Accelerator | Mobile / Device Authentication |
| Netskope | Accel Partners, ICONIQ Capital, Lightspeed Venture Partners | PAM |
| Bitglass | Australian Future Fund, New Enterprise Associates, Norwest Venture Partners | PAM |
| BeyondTrust | Blue Cloud Ventures, Fifth Street Finance, Veritas Capital | PAM |
| Avecto | JMI Equity | PAM |
| Dome9 Security | JAL Ventures, Lazarus Israel Opportunities Fund, Opus Capital | PAM |
| Omada | C5 Capital | PAM |
| Pythian | BDC Capital, Business Development Bank of Canada, Royal Bank of Canada | PAM |
| Gem | Amplify, Baroda Ventures, Birchmere Ventures | PAM |
| Resilient Network Systems | Alsop-Louie Partners, Bill Coleman, HRK Investments | PAM |
| Protenus | Arthur Ventures, Baltimore Angels, Cognosante | PAM |
| Thycotic Software | Insight Venture Partners | PAM |
| CensorNet | Talis Capital | PAM |
| Overwatch.ID | Undisclosed | PAM |
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