After a decade in the security space, Okta, a San Francisco cloud-based security company, has launched a $50 million fund to invest in startups that care about the same things they do: identity, security, and privacy.
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Okta plans to invest in startups that are already raising an early-stage round with an existing lead investor. It’s focused on companies that have the “potential to deliver unique value to Okta’s deep network of pre-built integrations,” per it’s website.
In addition to capital, Okta will offer its investments a range of services, like help with marketing and access to in-house technology and software. Startups can use Okta’s customer and workforce identity products for up to a year, it said.
Okta Ventures has already invested in one startup: Trusted Key, a block-chain company founded by former executives at Microsoft, Oracle, and Symantec. Trusted Key, like Okta, focuses on proofing user identities.
These investments will also strategically benefit Okta.
“Beyond investing in industry-wide innovation, we also recognize how valuable these advancements can be for our customers,” said Frederic Kerrest, Okta’s chief operating officer and co-founder. He added that they expect the companies to “extend” to their platform.
The company, which went public two years ago, is the latest in a series of corporations looking to invest in their younger competition: startups. This month alone, we wrote about several companies investing millions in startups, from Intel Capital, to Chevron, to Starbucks. It’s a trend that we started noticing last year, and it doesn’t seem to be going away anytime soon, so expect a roundup from us.
Illustration Credit: Li Anne Dias