With more than $172 million raised in total, it was a healthy week for B2B startups, though one clear winner emerged: cybersecurity, which landed nearly 70 percent of the total funding. Two cybersecurity companies came out on top, but they both focus their enterprise security efforts in different ways.
It’s probably a good thing, too, considering there has been one high-profile cyberattack after another shaking up the market, including Equifax, SAP, Yahoo, Deloitte and Instagram, just to name a few — and all within just the last few weeks.
PYMNTS takes a look at those cybersecurity firms, plus a few of the treasury management, blockchain and logistics firms that also grabbed fresh funding.
The $70 million raise by Duo Security makes this cybersecurity startup the latest unicorn in the industry. Backers at Meritech Capital Partners and Lead Edge Capital led the Series D investment round, according to TechCrunch news, while Index Ventures and Workday also participated. It brings Duo Security’s valuation up to $1.17 billion; the firm has so far raised a total of $119 million. In an interview with TechCrunch, Duo Security CEO Dug Song said, “cybersecurity is the biggest geopolitical issue of our time,” adding that the company will use the investment for product innovation and forming new partnerships.
This California-based startup has a particular cybersecurity focus: payments fraud. Feedzai, which deploys artificial intelligence (AI) solutions to manage risk and combat fraud in the enterprise, announced a $50 million investment round this week. The Series C funding was led by an undisclosed backer, though Sapphire Ventures also participated in the investment, the company noted. Feedzai provides its AI-based fraud management tool to banks and businesses. In a statement, CEO and Co-Founder Nuno Sebastiao said the investment will go toward accelerating growth and investment in human capital. The company will also continue to focus on its data science and machine learning technology.
B2B logistics company BlackBuck, operated by Zinka Logistics Solutions, landed $7.69 million in fresh funding this week, reports said. InnoVen Capital led the investment, as reported in Mint and VCCircle, but the company has yet to confirm the round. The funding follows the $70 million Series C round announced by the company earlier this year, which was led by Sands Capital, International Finance Corporation and backers at Accel Partners and Flipkart.
Big names are investing a lot into the area of blockchain, but it’s not everyday that a blockchain startup lands venture capital. This week, Digital Asset announced $40 million in funding from top banks; the investment was led by Jefferson River Capital LLC. In total, Digital Asset said it has raised $110 million. The startup focuses its blockchain innovation on using the technology for banks and financial services. Digital Asset said it will use the investment to expand its staff, currently at 130, reports in Reuters said.
TreasuryXpress said in an announcement this week that it received a $5 million growth investment from several backers, including MEVP, iSME Capital and Azure Fund. The company said it will use the funding to continue focusing on its on-demand treasury and financial management product development and expanding into new markets. “We are thrilled that our investors recognize both the potential of the on-demand treasury management solution market and TreasuryXpress’ ability to be the leading innovator of modern TMS technology,” said the firm’s CEO and Founder Anis Rahal in a statement.