Investment Theme

Increasing regulatory burdens are causing enterprises to seek robust governance, risk management and compliance solutions.

Background at the time of investment

As enterprise IT platforms have grown more complex, so has the challenge of managing user access to system applications and the data streams they generate. In recent years, increased regulatory requirements governing system access and reporting have added a significant compliance element to what was formerly just a security challenge. Recognizing that the additional compliance element had become a major pain point for many companies (especially in the financial services space), serial entrepreneur Deepak Taneja founded Aveksa to help enterprises manage user access and meet compliance/reporting requirements more efficiently – as well as turn the access and usage tracking data into actionable business intelligence that could improve internal processes and maximize ROI on the enterprise IT spend.

Investment Theme and Criteria

• FTV knew from conversations with members of its Global Partner Network that regulations, audit, and compliance were becoming major drivers of adoption for identity and access management (IAM) and security governance solutions; Aveksa’s value proposition reflected this shift.
• Aveksa’s technology platform was scalable and ready for deployment in enterprise environments like those in FTV’s Global Partner Network.
• The company had already forged a number of high value blue chip client relationships, including enterprises in the financial services industry, on which to build its business base.

Knowledge and Network Advantage

• FTV invested $13 million in Aveska, leading a series B round in 2008 and a later follow-on investment to help improve potential exit timing/positioning.
• Helped Aveksa calibrate its pitch to target companies who understood the bigger-picture advantages that its platform offered.
• Helped identify product development initiatives and sales force upgrades with the highest potential ROI.
• Connected Aveksa to more than 40 potential clients and business partners through introductions within the Global Partner Network, resulting in several significant engagements – including the largest client contract in Aveksa’s history.
• Consulted on merger and acquisition opportunities as the company grew.

Transformative Growth

• CAGR of 69 percent from 2008 to 2012.
• Acquisition by RSA, a division of EMC2 in 2013, generating strong return on investment.