Okta’s new $50M fund makes first investment in blockchain identity startup

Identity and access management firm Okta has announced the launch of a $50 million investment fund which will invest in cutting edge technologies with a particular focus on identity, security, and privacy.

Called “Okta Ventures,” the fund will focus on companies building innovative solutions using advanced technologies artificial intelligence, machine learning, and blockchain, with an emphasis on early-stage investment.

In addition to monetary support, Okta Ventures plans to offer other advantages to portfolio companies, including the use of its software, access to expertise, SDK and API design partnerships, and co-marketing opportunities. It will particularly emphasize on modern identity architecture design and adoption with its portfolio companies.

“In line with Okta’s vision of enabling any organization to use any technology, Okta Ventures will invest in the growing ecosystem of startups tackling issues like identity, security, and privacy,” said Frederic Kerrest, Chief Operating Officer and co-founder of Okta.

“We expect the partnerships with our portfolio companies to extend our platform, and we’re committed to providing significant value to these early stage startups.”

The fund has made its first investment in Trusted Key, a blockchain-based digital identity company founded by former executives from Microsoft, Oracle, and Symantec in 2016.

Trusted Key has built a decentralized digital identity solution which enables organizations that work together as ecosystems to share strongly proofed user identities with user consent. It has combined innovative mobile and blockchain technologies into a secure platform and offers customers a blend of security and customizable experiences to meet modern identity challenges.

“Decentralized identity marks a profound change for the identity industry and we believe we are in the early stages of this change,” said Amit Jasuja, Chief Executive Officer of Trusted Key. “Joining the Okta Ventures portfolio gives us a chance to access more than just funds to build our business, as Okta’s experience and depth of knowledge in the identity space will be invaluable as we move forward.”

Okta went public on the Nasdaq in April 2017 and raised $187 million by selling 11 million shares in the initial public offering.