US-based identity management technology producer Okta launched a $50m corporate venture capital vehicle called Okta Ventures on Wednesday to invest in identity, security and privacy technology startups.
Founded in 2009, Okta has developed software that enables companies to protect and verify the identity of their employees and customers. The fund will target companies building innovative products in areas such as artificial intelligence, machine learning and blockchain technology.
Okta Ventures will invest between $250,000 and $2m in eight to 10 early-stage businesses each year, Okta’s chief operating officer, Frederic Kerrest, told TechCrunch.
Each portfolio company will also gain access to Okta’s software and software development kit as well as its application programme interface (API) design partnerships and co-marketing opportunities.
Kerrest said in a statement: “Beyond investing in industry-wide innovation, we also recognise how valuable these advancements can be for our customers, who are often looking for solutions to some of the hard problems these companies are solving.“
“We expect the partnerships with our portfolio companies to extend our platform, and we are committed to providing significant value to these early stage startups.”
Okta Ventures’ first deal involved an investment of undisclosed size Trusted Key, a US-based developer of blockchain-powered software that helps organisations onboard and verify new users.
Venture capital firm Founder Co-op led a $3m seed round for Trusted Key in May 2018, investing alongside Pithia, the VC arm of blockchain technology developer RChain Cooperative.