Digital ID financing quietly hums: Strata gets $26M from VCs, Saviynt gets $205M loan
Venture funding for digital identity plays is there to be had, but pretty quiet, forcing more companies to look for financing in places that themselves had been quiet for a decade.
Strata has closed a $26 million series B led by Telstra Ventures, a corporate venture fund. Menlo Venture participated along with Forgepoint Capital and Innovating Capital. Marcus Bartram, a Telstra general partner, will take a seat on Strata’s board.
Executives with Strata say the new investment will fund push sales and marketing ahead.
Two years ago almost to the day, the company closed its $11 million series A. Cumulatively, according to Strata, it has raised $42 million. Menlo led that time and a partner was given a board seat. ForgePoint participated.
The company took the opportunity to crow about having hired talent away from AuthO, Oracle, RSA, Sailpoint and Jumpcloud.
Saviynt also scored corporate financing in the form of a $205 million debt facility from AB Private Credit Investors. Unlike with a venture deal, where investors get part ownership of the recipient, Saviynt is borrowing money from financing firm AB (AllianceBernstein).
The company has said it will use the money to expand production of its converged identity platform and “accelerate innovation.”
Terms of the deal were not disclosed, but it probably is no coincidence that on the day the loan is announced, Saviynt said its founder is returning as CEO.
Sachin Nayyar was a company leader from 2011 to 2018 and left to be CEO of Securonix, a cybersecurity firm. Nayyar will be replacing Amit Saha as chief executive, although Saha will take up a new position – chief growth officer.
A new face is part of the changes, too. A managing director at private equity firm Carrick Capital Partners, Paul Zolfaghari, is joining Saviynt as its president.
It is difficult to guess which organization will be happier with its financing. Venture financing means getting money with no upfront costs, but the VC becomes a partner in running things.
Debt, of course, has to be repaid, but typically, the lender does not become a de facto partner.