DREAMTECH NEWS

Testing platform Tricentis acquires performance testing service Neotys

If you develop software for a large enterprise company, chances are you’ve heard of Tricentis. If you don’t develop software for a large enterprise company, chances are you haven’t. The software testing company with a focus on modern cloud and enterprise applications was founded in Austria in 2007 and grew from a small consulting firm to a major player in this field, with customers like Allianz, BMW, Starbucks, Deutsche Bank, Toyota and UBS. In 2017, the company raised a $165 million Series B round led by Insight Venture Partners.

Today, Tricentis announced that it has acquired Neotys, a popular performance testing service with a focus on modern enterprise applications and a tests-as-code philosophy. The two companies did not disclose the price of the acquisition. France-based Neotys launched in 2005 and raised about €3 million before the acquisition. Today, it has about 600 customers for its NeoLoad platform. These include BNP Paribas, Dell, Lufthansa, McKesson and TechCrunch’s own corporate parent, Verizon.

As Tricentis CEO Sandeep Johri noted, testing tools were traditionally script-based, which also meant they were very fragile whenever an application changed. Early on, Tricentis introduced a low-code tool that made the automation process both easier and resilient. Now, as even traditional enterprises move to DevOps and release code at a faster speed than ever before, testing is becoming both more important and harder for these companies to implement.

“You have to have automation and you cannot have it be fragile, where it breaks, because then you spend as much time fixing the automation as you do testing the software,” Johri said. “Our core differentiator was the fact that we were a low-code, model-based automation engine. That’s what allowed us to go from $6 million in recurring revenue eight years ago to $200 million this year.”

Tricentis, he added, wants to be the testing platform of choice for large enterprises. “We want to make sure we do everything that a customer would need, from a testing perspective, end to end. Automation, test management, test data, test case design,” he said.

The acquisition of Neotys allows the company to expand this portfolio by adding load and performance testing as well. It’s one thing to do the standard kind of functional testing that Tricentis already did before launching an update, but once an application goes into production, load and performance testing becomes critical as well.

“Before you put it into production — or before you deploy it — you need to make sure that your application not only works as you expect it, you need to make sure that it can handle the workload and that it has acceptable performance,” Johri noted. “That’s where load and performance testing comes in and that’s why we acquired Neotys. We have some capability there, but that was primarily focused on the developers. But we needed something that would allow us to do end-to-end performance testing and load testing.”

The two companies already had an existing partnership and had integrated their tools before the acquisition — and many of its customers were already using both tools, too.

“We are looking forward to joining Tricentis, the industry leader in continuous testing,” said Thibaud Bussière, president and co-founder at Neotys. “Today’s Agile and DevOps teams are looking for ways to be more strategic and eliminate manual tasks and implement automated solutions to work more efficiently and effectively. As part of Tricentis, we’ll be able to eliminate laborious testing tasks to allow teams to focus on high-value analysis and performance engineering.”

NeoLoad will continue to exist as a stand-alone product, but users will likely see deeper integrations with Tricentis’ existing tools over time, include Tricentis Analytics, for example.

Johri tells me that he considers Tricentis one of the “best kept secrets in Silicon Valley” because the company not only started out in Europe (even though its headquarters is now in Silicon Valley) but also because it hasn’t raised a lot of venture rounds over the years. But that’s very much in line with Johri’s philosophy of building a company.

“A lot of Silicon Valley tends to pay attention only when you raise money,” he told me. “I actually think every time you raise money, you’re diluting yourself and everybody else. So if you can succeed without raising too much money, that’s the best thing. We feel pretty good that we have been very capital efficient and now we’re recognized as a leader in the category — which is a huge category with $30 billion spend in the category. So we’re feeling pretty good about it.”


By Frederic Lardinois

EQT Ventures promotes Laura Yao to partner; hires Anne Raimondi as operating partner

EQT Ventures, an investment firm based in Europe, which has raised over €1.2 billion ($1.4B USD) announced that it has promoted Laura Yao to partner. At the same time, the firm announced it recently hired Anne Raimondi, former SVP of Operations at Zendesk as operating partner.

The company is based in Stockholm with offices in London, Berlin, Paris, Amsterdam and Luxembourg. Yao is based in the U.S. office in San Francisco, where she has been working for three years prior to her recent promotion to partner. She says that the company tends to hire people with operator experience because they relate well to the founders of startups they invest in.

“Our goal is to partner with the most ambitious and boldest founders in Europe and the US and kind of be the investors that we all wish we’d had when we were on the other side of the table,” Yao told me.

Yao’s background includes co-founding a startup called The PhenomList in 2011. While she is responsible for looking for new investments, Raimondi works with the existing portfolio of companies, particularly B2B SaaS companies, helping them with practical aspects of building a startup like go-to-market strategy, organizational design, hiring executives and other components of company building.

“I joined earlier this year as an operating partner, so I’m not on the investing side but actually focused on working with existing portfolio company founders as they grow and scale,” Raimondi said.

Unfortunately, female partners like Yao and Raimondi remain a rarity in most venture firms with a Crunchbase report from last April finding that just 3% of investors are women, and that over two-thirds of firms don’t have a single woman as a partner.

EQT has a 50/50 male to female employee ratio, although the partners were all male until Yao was promoted and Raimondi hired. That makes two of 6 as the company attempts to make the investment team reflect the rest of the company and the population at large.

Part of Raimondi’s job is talking to startups about building diverse and equitable organizations and she and Yao know the company needs to model that. She says that thriving startups understand on the product side that to build a successful product, they start with a hypothesis, then develop targets and metrics to test, learn, and then iterate.

She says that they need to do the same thing to build a diverse and inclusive company. That starts with defining what diversity and inclusion looks like and setting up metrics to measure their progress.

“You evaluate [your diversity goals] and hold [the company] accountable to what you’ve signed up for. If you don’t meet them, [you look at] what can you do to improve them. Then you look at how you keep iterating, and then constantly measuring the employee experience across many dimensions, including not only diversity, but the important part of belonging,” Raimondi said.

Both women say their company does a good job at this, and their hiring/promotion proves that. Yao says that the organization as a whole has created a comfortable and inclusive culture. “It’s very collaborative and egalitarian. Anyone can say whatever’s on their mind. It’s very non-hierarchical and a comfortable place for a woman to work. I felt immediately welcomed and that my ideas were welcome immediately,” she said.

The company portfolio includes startups in the US and Europe and the firm sees itself as a bridge between the two locations. Among the companies EQT has invested in include bug bounty startup HackerOne, website building technology Netlify, and quantum computing startup Seeqc.


By Ron Miller

Slack wants to be more than a text-based messaging platform

Last October as Slack was preparing for its virtual Frontiers conference, the company began thinking about different ways people could communicate on the platform. While it had built its name on being able to integrate a lot of services in a single place to alleviate the dreaded task-switching phenomenon, it has been largely text-based up until now.

More recently, Slack has started developing a few new features that could bring different ways of interacting to the platform. CEO Stewart Butterfield discussed them on Thursday with former TechCrunch reporter Josh Constine, now a SignalFire investor, in a Clubhouse interview.

The talk was about the future of work, and Slack believes these new ways of communicating could help employees better connect online as we shift to a hybrid work world — one which has been hastened by the pandemic over the last year. There is a general consensus that many companies will continue to work in a hybrid fashion, even when the pandemic is over.

For starters, Slack aims to add a way to communicate by video. But instead of trying to compete with Zoom or Microsoft Teams, Slack is envisioning an experience that’s more like Instagram Stories.

Think about the CEO sharing an important announcement with the company, or the kind of information that might have gone out in a company-wide email. Instead, you can skip the inbox and deliver the message directly by video. It’s taking a page from the consumer approach to social and trying to move it into the enterprise.

Writing in a company blog post earlier this week, Slack chief product officer Tamar Yehoshua was clear this was going to be an asynchronous approach, rather than a meeting kind of experience.

“To help with this, we are piloting ways to shift meetings toward an asynchronous video experience that feels native in Slack. It allows us to express nuance and enthusiasm without a meeting,” she wrote.

While it was at it, Slack decided to create a way of just chatting by voice. As Butterfield told Constine in his Clubhouse interview, this is essentially Clubhouse (or Twitter Spaces) being built for Slack.

Yeah, I’ve always believed the ‘good artists copy, great artists steal’ thing, so we’re just building Clubhouse into Slack, essentially. Like that idea that you can drop in, the conversation’s happening whether you’re there or not, you can enter and leave when you want, as opposed to a call that starts and stops, is an amazing model for encouraging that spontaneity and that serendipity and conversations that only need to be three minutes, but the only option for you to schedule them is 30 minutes. So look out for Clubhouse built into Slack.

Again, it’s taking a consumer social idea and applying it to a business setting with the idea of finding other ways to keep you in Slack when you could be using other tools to achieve the same thing, whether it be Zoom meetings, email or your phone.

Butterfield also hinted hinted that another feature — asynchronous audio, allowing you to leave the equivalent of a voicemail — could be coming some time in the future. A Slack spokesperson confirmed that it was in the works, but wasn’t ready to share details yet.

It’s impossible to look at these features without thinking about them in the context of the $27 billion Salesforce acquisition of Slack at the end of last year. When you put them all together, you have this set of tools that let you communicate in whatever way makes the most sense to you.

When you combine that Slack Connect DM, a new feature to communicate outside the organization that was released this week to some controversy, as people wanted assurances that they could control spam and harassment, it takes the concept one step further — outside the organization itself.

As part of a larger entity like Salesforce, these tools could be useful across sales, service and even marketing as a way to communicate in a variety of ways inside and outside the organization. And they greatly expand the value prop of Slack as it becomes part of Salesforce sometime later this year.

While it began talking about the new audio and video features last fall, the company has been piloting them since the beginning of this year. So far Slack is not saying when the new features will be generally available.


By Ron Miller

No code, workflow, and RPA line up for their automation moment

We’ve seen a lot of trend lines moving throughout 2020 and into 2021 around automation, workflow, robotic process automation (RPA) and the movement to low-code and no-code application building. While all of these technologies can work on their own, they are deeply connected and we are starting to see some movement towards bringing them together.

While the definition of process automation is open to interpretation, and could include things like industrial automation, Statista estimates that the process automation market could be worth $74 billion in 2021. Those are numbers that are going to get the attention of both investors and enterprise software executives.

Just this week, Berlin-based Camunda announced a $98 million Series B to help act as a layer to orchestrate the flow of data between RPA bots, microservices and human employees. Meanwhile UIPath, the pure-play RPA startup that’s going to IPO any minute now, acquired Cloud Elements, giving it a way to move beyond RPA into API automation.

Not enough proof for you? How about ServiceNow announcing this week that it is buying Indian startup Intellibot to give it — you guessed it — RPA capabilities. That acquisition is part of a broader strategy by the company to move into full-scale workflow and automation, which it discussed just a couple of weeks ago.

Meanwhile at the end of last year, SAP bought a different Berlin process automation startup, Signavio, for $1.2 billion after announcing new automated workflow tools and an RPA tool at the beginning of December. Microsoft is in on it too, having acquired process automation startup Softmotive last May, which it then combined with its own automation tool PowerAutomate.

What we have here is a frothy mix of startups and large companies racing to provide a comprehensive spectrum of workflow automation tools to empower companies to spin up workflows quickly and move work involving both human and machine labor through an organization.

The result is hot startups getting prodigious funding, while other startups are exiting via acquisition to these larger companies looking to buy instead of build to gain a quick foothold in this market.

Cathy Tornbohm, Distinguished Research Vice President at Gartner, says part of the reason for the rapidly growing interest is that these companies have stayed on the sidelines up until now, but they see an opportunity and are using their checkbooks to play catch up.

“IBM, SAP, Pega, Appian, Microsoft, ServiceNow all bought into the RPA market because for years they didn’t focus on how data got into their systems when operating between organizations or without a human. [Instead] they focused more on what happens inside the client’s organization. The drive to be digitally more efficient necessitates optimizing data ingestion and data flows,” Tornbohm told me.

For all the bluster from the big vendors, they do not control the pure-play RPA market. In fact, Gartner found that the top three players in this space are UIPath, Automation Anywhere and Blue Prism.

But Tornbohm says that, even as the traditional enterprise vendors try to push their way into the space, these pure-play companies are not sitting still. They are expanding beyond their RPA roots into the broader automation space, which could explain why UIPath came up from its pre-IPO quiet period to make the Cloud Elements announcement this week.

Dharmesh Thakker, managing partner at Battery Ventures, agrees with Tornbohm, saying that the shift to the cloud, accelerated by COVID-19, has led to an expansion of what RPA vendors are doing.

“RPA has traditionally focused on automation-UI flow and user steps, but we believe a full automation suite requires that ability to automate processes across the stack. For larger companies, we see their interest in the category as a way to take action on data within their systems. And for standalone RPA vendors, we see this as validation of the category and an invitation to expand their offerings to other pillars of automation,” Thakker said.

The activity we have seen across the automation and workflow space over the last year could be just the beginning of what Thakker and Tornbohm are describing, as companies of all sizes fight to become the automation stack of choice in the coming years.


By Ron Miller

Why Adam Selipsky was the logical choice to run AWS

When AWS CEO Andy Jassy announced in an email to employees yesterday that Tableau CEO Adam Selipsky was returning to run AWS, it was probably not the choice most considered. But to the industry watchers we spoke to over the last couple of days, it was a move that made absolute sense once you thought about it.

Gartner analyst Ed Anderson says that the cultural fit was probably too good for Jassy to pass up. Selipsky spent 11 years helping build the division. It was someone he knew well and had worked side by side with for over a decade. He could slide into the new role and be trusted to continue building the lucrative division.

Anderson says that even though the size and scope of AWS has changed dramatically since Selipsky left in 2016 when the company closed the year on $16 billion run rate, he says that the organization’s cultural dynamics haven’t changed all that much.

“Success in this role requires a deep understanding of the Amazon/AWS culture in addition to a vision for AWS’s future growth. Adam already knows the AWS culture from his previous time at AWS. Yes, AWS was a smaller business when he left, but the fundamental structure and strategy was in place and the culture hasn’t notably evolved since then,” Anderson told me.

Matt McIlwain, managing director at Madrona Venture Group says the experience Selipsky had after he left AWS will prove invaluable when he returns.

“Adam transformed Tableau from a desktop, licensed software company to a cloud, subscription software company that thrived. As the leader of AWS, Adam is returning to a culture he helped grow as the sales and marketing leader that brought AWS to prominence and broke through from startup customers to become the leading enterprise solution for public cloud,” he said.

Holger Mueller, an analyst with Constellation Research says that Selipsky’s business experience gave him the edge over other candidates. “His business acumen won out over [internal candidates] Matt Garmin and Peter DeSantis. Insight on how Salesforce works may be helpful and valued as well,” Mueller pointed out.

As for leaving Tableau and with it Salesforce, the company that purchased it for $15.7 billion in 2019, Brent Leary, founder and principal analyst at CRM Essentials believes that it was only a matter of time before some of these acquired company CEOs left to do other things. In fact, he’s surprised it didn’t happen sooner.

“Given Salesforce’s growing stable of top notch CEOs accumulated by way of a slew of high profile acquisitions, you really can’t expect them all to stay forever, and given Adam Selipsky’s tenure at AWS before becoming Tableau’s CEO, this move makes a whole lot of sense. Amazon brings back one of their own, and he is also a wildly successful CEO in his own right,” Leary said.

While the consensus is that Selipsky is a good choice, he is going to have awfully big shoes to fill.  The fact is that division is continuing to grow like a large company currently on a run rate of over $50 billion. With a track record like that to follow, and Jassy still close at hand, Selipsky has to simply continue letting the unit do its thing while putting his own unique stamp on it.

Any kind of change is disconcerting though, and it will be up to him to put customers and employees at ease and plow ahead into the future. Same mission. New boss.


By Ron Miller

Salesforce updates includes sales info overlay for Zoom meetings

The pandemic has clearly had an impact on the way we work, and this is especially true for salespeople. Salesforce introduced a number updates to Sales Cloud this morning including Salesforce Meetings, a smart overlay for Zoom meetings that gives information and advice to the sales team as they interact with potential customers in online meetings.

Bill Patterson, EVP and General Manager of CRM applications at Salesforce says that the company wanted to help sales teams manage these types of interactions better and take advantage of the fact they are digital.

“There’s a broad recognition, not just from Salesforce, but really from every sales organization that selling is forever changed, and I think that there’s been a broad understanding, and maybe a surprise in learning how effective we can be in the from anywhere kind of times, whether that’s in office or not in office or whatever,” Patterson explained.

Salesforce Meetings gives that overlay of information, whether it’s advice to slow down the pace of your speech or information about the person speaking. It can also compile action items and present a To Do list to participants at the end of each meeting to make sure that tasks don’t fall through the cracks.

This is made possible in part through the Einstein intelligence layer that is built across the entire Salesforce platform. In this case, it takes advantage of a new tool called Einstein Intelligent Insights, which the company is also exposing as a feature for developers to build their own solutions using this tool.

For sales people who might find the tool a bit too invasive, you can dial the confidence level of the information up or down on an individual basis, so that you can get a lot of information or a little depending on your needs.

For now, it works with Zoom and the company has been working closely with the Zoom development team to provide the API and SDK tooling it needs to pull something like this off, according to Patterson. He notes that plans are in the works to make it compatible with WebEx and Microsoft Teams in the future.

While the idea was in the works prior to the pandemic, COVID created a sense of urgency for this kind of feature, as well as other features announced today like Pipeline Inspection, which uses AI to analyze the sales pipeline. It searches for changes to deals over time with the goal of finding the ones that could benefit most from coaching or managerial support to get them over the finish line.

Brent Leary, founder and principal analyst at CRM Essentials says that this ability to capture information in online meetings is changing the way we think about CRM.

“The thing the caught my attention is how tightly integrated video meetings/collaboration is now into sales process. This is really compelling because meeting interactions that may not find their way into the CRM system are now automatically captured,” Leary told me.

Salesforce Meetings is available today, while Pipeline Inspection is expected to be available this summer.


By Ron Miller

Bevy raises $40M Series C with 20% coming from Black investors

You might expect that a startup that makes community building software would be thriving during a pandemic when it’s so difficult for us to be together. And Bevy, a company whose product powers community sites like Salesforce Trailblazers and Google Developers announced it has raised a $40 million Series C this morning, at least partly due to the growth related to that dynamic.

The round was led by Accel with participation from Upfront Ventures, Qualtrics co-founder Ryan Smith and LinkedIn, but what makes this investment remarkable is that it included 25 Black investors representing 20% of the investment.

One of those investors, James Lowery, who is a management consultant and entrepreneur, and was the first Black employee hired at McKinsey in 1968, sees the opportunity for this approach to be a model to attract investment from other under-represented groups.

“I know for a fact because of my friendship and my network that there are a lot of people, if they had the opportunity to invest in opportunities like this, they will do it, and they have the money to do it. And I think we can be the model for the nation,” Lowery said.

Unfortunately, there has been a dearth of Black VC investment in startups like Bevy. In fact, only around 3% of venture capitalists are Black and 81% of VC firms don’t have a single Black investor.

Kobie Fuller, who is general Partner at investor Upfront Ventures, a Bevy board member and runs his own community called Valence, says that Bevy says that investments like this can lead to a flywheel effect that can lead to increasing Black investment in startups.

“So for me, it’s about how do we get more Black investors on cap tables of companies early in their lifecycle before they go public, where wealth can be created. How do we get key members of executive teams being Black executives who have the ability to create wealth through options and equity. And how do we also make sure that we have proper representation on the boards of these companies, so that we can make sure that the CEOs and the C suite is held accountable towards the diversity goals,” Fuller said.

Fuller sees a software platform like Bevy that facilitates community as a logical starting point for this approach, and the company needs to look like the broader communities it serves. “Making sure that our workforce is appropriately represented from a perspective of having appropriate level of Black employees to the board to the actual investors is just good business sense,” he said.

But the diversity angle doesn’t stop with the investor group. Bevy CEO and co-founder Derek Anderson says that last May when George Floyd was killed, his firm didn’t have a single person of color among the company’s 27 employees and not a single Black investor in his cap table. He wanted to change that, and he found that in diversifying, it not only was the right thing to do from a human perspective, it was also from a business one.

“We realized that if we really started including people from the Black and Brown communities inside of Bevy that the collective bar of a talent was going to go up. We were going to look from a broader pool of candidates, and what we found as we’ve done this is that as the culture has started to change, the customer satisfaction is going up, our profits and our revenues — the trajectory is going up, and I see this thing is completely correlated,” Anderson said.

Last summer the company set a two year goal to get to 20% of employees being Black. While the number of employees is small, Bevy went from zero to 5% in June, 10% by September. Today they are just under 15% and expect to hit the 20% goal by summer, a year ahead of the goal it set last year.

 

Bevy grew out of a community called Startup Grind that Anderson started several years ago. Unable to find software to run and manage the community, he decided to build it himself. In 2017, he spun that product into a separate company that became Bevy, and he has raised $60 million, according to the company.

In addition to Salesforce and Google, other large enterprises are using Bevy to power their communities and events including Adobe, Atlassian, Twilio, Slack and Zendesk.

Today, the startup is valued at $325 million, which is 4x the amount it was valued at when it raised its $15 million Series B in May 2019. It expects to reach $30 million in ARR by the end of this year.


By Ron Miller

Feedzai raises $200M at a $1B+ valuation for AI tools to fight financial fraud

On the heels of Jumio announcing a $150 million injection this week to continue building out its AI-based ID verification and anti-money laundering platform, another startup in the space is levelling up. Feedzai, which provides banks, others in the financial sector, and any company managing payments online with AI tools to spot and fight fraud — its cornerstone service involves super quick (3 millisecond) checks happening in the background while transactions are being made — has announced a Series D of $200 million. It said that the new financing is being made at a valuation of over $1 billion.

The round is being led by KKR, with Sapphire Ventures and strategic backer Citi Ventures — both past investors — also participating. Feedzai said it will be using the funds for further R&D and product development, to expand into more markets outside the U.S. — it was originally founded in Portugal but now is based out of San Mateo — and towards business development, specifically via partnerships to integrate and sell its tools.

One of those partners looks to be Citi itself:

“Citi is committed to advancing global payments anchored on transparency, efficiency, and control, and our partnership with Feedzai is allowing us to provide customers with technology that seamlessly balances agility and security,” said Manish Kohli, Global Head of Payments and Receivables, with Citi’s Treasury and Trade Solutions, in a statement.

The funding is coming at a time when the need for fraud protection for those managing transactions online has reached a high watermark, leading to a rush of customers for companies in the field.

Feezai says that its customers include 4 of the 5 largest banks in North America, 80% of the world’s Fortune 500 companies, 154 million individual and business taxpayers in the U.S., and has processed $9 billion in online transactions for 2 of the world’s most valuable athletic brands. In total its reach covers some 800 million customers of businesses that use its services.

In addition to Citibank, its customers include Fiserv, Santander, SoFi, and Standard Chartered’s Mox.

The round comes nearly four years after Feedzai raised its Series C, a $50 million round led by an unnamed investor and with an undisclosed valuation. Sapphire also participated in that round.

While money laundering, fraud and other kinds of illicit financial activity were already problems then, in the interim, the problem has only compounded, not least because of how much activity has shifted online, accelerating especially in the last year of pandemic-driven lockdowns. That’s been exacerbated also by a general rise in cybercrime — of which financial fraud remains the biggest component and motivator.

Within that bigger trend, solutions based on artificial intelligence have really emerged as critical to the task of identifying and fighting those illicit activities. Not only is that because AI solutions are able to make calculations and take actions and simply process more than non-AI based tools, or humans for that matter, but they are then able to go head to head with much of the fraud taking place, which itself is being built out on AI-based platforms and requires more sophistication to identify and combat.

For banking customers, Feedzai’s approach has been disruptive in part because of how it has conceived of the problem: it has built solutions that can be used across different scenarios, making them more powerful since the AI system is subsequently “learning” from more data. This is in contrast to how many financial service providers had conceived and tackled the issue in the past.

“Until now banks have used solutions based on verticals,” Nuno Sebastiao, co-founder and CEO of Feedzai, said in the past to TechCrunc. “The fraud solution you have for an ATM wouldn’t be the same fraud solution you would use for online banking which wouldn’t be the same fraud solution would have for a voice call center.” As these companies have refreshed their systems, many have taken a more agnostic approach like the kind the Feedzai has built.

The scale of the issue is clear, and unfortunately also something many of us have experienced first-hand. Feedzai says its data indicates that the last quarter of 2020 that show consumers saw a 650% increase in account takeover scams, a 600% in impersonation scams, and a 250% increase in online banking fraud attacks versus the first quarter of 2020.  (Those periods are, essentially, before pandemic and during pandemic comparisons.)

“The past 12 months have accelerated the world’s dependency on electronic financial services – from online banking to mobile payments, and in turn have increased fraud and money laundering activity. Our services are in more demand than ever,” said Sebastiao in a statement today.

Indeed, yesterday, when I covered Jumio’s $150 million round, I said I wouldn’t consider its funding to be an outlier (even though Jumio made clear it was the largest funding to date in its space): the fast follow from Feedzai, with an even higher amount of financing, really does underscore the trend at the moment.

In addition to these two, one of Feedzai’s biggest competitors, Kount, was acquired by credit ratings giant Equifax earlier this year for $640 million to move deeper into the space. (And related to that field, in the area of identity management, which goes hand-in-hand with tools for laundering and fraud, Okta acquired Auth0 for $6.5 billion.)

Other big rounds for startups in the wider space have included included ForgeRock ($96 million round), Onfido ($100 million), Payfone ($100 million), ComplyAdvantage ($50 million), Ripjar ($36.8 million) Truework ($30 million), Zeotap ($18 million) and Persona ($17.5 million).

KKR’s involvement in this round is notable as another example of a private equity firm getting in earlier with venture rounds with fast-scaling startups, similar to Great Hill’s investment in Jumio yesterday and a number of other examples. The firm says it’s making this investment out of its Next Generation Technology Growth Fund II, which is focused on making growth equity investment opportunities in the technology space.

“Feedzai offers a powerful solution to one of the biggest challenges we are facing today: financial crime in the digital age. Global commerce depends on future-proof technologies capable of dealing with a rapidly evolving threat landscape. At the same time, consumers rightfully demand a great customer experience, in addition to strong security layers when using banking or payments services,” said Stephen Shanley, Managing Director at KKR, in a statement

“We believe Feedzai’s platform uniquely meets these expectations and more, and we are looking forward to working with Nuno and the rest of the team to expand their offering even further,” added Spencer Chavez, Principal at KKR.


By Ingrid Lunden

Tableau CEO Adam Selipsky is returning to AWS to replace Andy Jassy as CEO

When Amazon announced last month that Jeff Bezos was moving into the executive chairman role, and AWS CEO Andy Jassy would be taking over the entire Amazon operation, speculation began about who would replace Jassy.

People considered a number of internal candidates such as Peter DeSantis, vice president of global infrastructure at AWS and Matt Garman, who is vice president of sales and marketing. Not many would have chosen Tableau CEO Adam Selipsky, but sure enough he is returning home to run the division he left in 2016.

In an email to employees, Jassy wasted no time getting to the point that Selipsky was his choice, saying that the former employee who helped launch the division when they hired him 2005, spent 11 years helping Jassy build the unit before taking the job at Tableau. Through that lens, the the choice makes perfect sense.

“Adam brings strong judgment, customer obsession, team building, demand generation, and CEO experience to an already very strong AWS leadership team. And, having been in such a senior role at AWS for 11 years, he knows our culture and business well,” Jassy wrote in the email.

Jassy has run the AWS since its earliest days taking it from humble beginnings as a kind of internal experiment on running a storage web service to building a mega division currently on a $51 billion run rate. It is that juggernaut that will be Selipsky to run, but he seems well suited for the job.

He is a seasoned executive, and while he’s been away from AWS when it really began to grow, he still understands the culture well enough to step smoothly into the role.  At the same, he’s leaving Tableau, a company he helped transform from a desktop software company into one firmly in the cloud.

Salesforce bought Tableau in June 2019 for a cool $15.7 billion and Selipsky has remained at the helm since then, but perhaps the lure of running AWS was too great and he decided to take the leap to the new job.

When we wrote a story at the end of last year about Salesforce’s deep bench of executive talent one of the CEOs we pointed at as a possible replacement was Selipsky. But with it looking more like president and COO Bret Taylor would be the heir apparent, perhaps Selipsky was ready for a new challenge.

Selipsky will make his return to AWS on May 17th and spend a few weeks with Jassy in a transitional time before taking over to run the division on his own. As Jassy slides into the Amazon CEO role, it’s clear the two will continue to work closely together, just like they did all those years ago.


By Ron Miller

OneTrust adds ethics to its privacy platform with Convercent acquisition

OneTrust, a late stage privacy platform startup, announced it was adding ethics and compliance to the mix this morning by acquiring Convercent, a company that was built to help build more ethical organizations. The companies did not share the purchase price.

OneTrust just raised $300 million on a fat $5.1 billion valuation at the end of last year, and it’s putting that money to work with this acquisition. Alan Dabbiere, co-chairman at OneTrust sees this acquisition as a way to add a missing component to his company’s growing platform of services.

“OneTrust instantly brings a proven ethics and compliance technology, team, and customer base into the OneTrust, further aligning the Chief Ethics & Compliance Officer strategy alongside privacy, data governance, third-party risk, GRC (governance, risk and compliance), and ESG (environmental, social and governance) to build trust as a competitive advantage,” he said.

Convercent brings 750 customers and 150 employees to the OneTrust team along with its ethics system, which includes a way for employees to report ethical violations to the company and a tool for managing disclosures.

Convercent can also use data to help surface bad behavior before it’s been reported. As CEO Patrick Quinlan explained in a 2018 TechCrunch article:

“Sometimes you have this interactive code of conduct, where there’s a new vice president in a region and suddenly page views on the sexual harassment section of the Code of Conduct have increased 200% in the 90 days after he started. That’s easy, right? There’s a reason that’s happening, and our system will actually tell you what’s happening.”

Quinlan wrote in a company blog post announcing the deal that joining forces with OneTrust will give it the resources to expand its vision.

“As a part of OneTrust, we’ll be combining forces with the leader across privacy, security, data governance, third-party risk, GRC, ESG—and now—ethics and compliance. Our customers will now be able to build centralized programs across these workstreams to make trust a competitive differentiator,” Quinlan wrote.

Convercent was founded in 2012 and has raised over $100 million, according to Pitchbook data. OneTrust was founded in 2016. It has over 8000 customers and 150 employees and has raised $710 million, according to the company.


By Ron Miller