Finovate Blog

• Earned wage access tool Wagestream raised $175 million.
• The investment includes $115 in debt funding and $60 in equity funding.
• Wagestream will use the funds to add to its product lineup and fuel its U.S. expansion.

Earned wage access tool Wagestream landed $175 million in combined debt and equity funding today. The Series C round, which brought $115 in debt and $60 in equity, boosts the U.K.-based company to a total of $254 million in total funding.

New investors in the round include Smash Capital, BlackRock Innovation and Growth Trust, and Silicon Valley Bank. Existing investors Northzone, Balderton, QED, LocalGlobe, XYZ, Village Global, and Fair By Design also contributed.

Founded in 2018, Wagestream has offered one million workers access to $4.7 billion in wages that they’ve earned. The company considers one measure of its success as capital raised to liquidity released. Wagestream estimates that, prior to today’s investment, the company’s ratio was 1:55. That is, for every $1 of capital it raised, it released $55 of capital. “We’re aiming for a ratio of 1:100, meaning every $1 of capital raised by Wagestream will unlock $100 of impact for frontline workers,” said Wagestream Co-founders Peter Briffett and Portman Wills.

In addition to making that ratio possible, today’s investment will also power the development of new services, including an insurance offering that automatically adjusts coverage and premium, an app that enrolls users into optimal energy plans, fair credit without the need for a traditional credit score, and an intelligent savings installment plan.

Wagestream will also leverage the investment to expand internationally. Specifically, the company will focus on serving U.S. users. To fuel this move, Wagestream recently opened its U.S. headquarters in Washington, D.C.

Photo by Rene Asmussen

Identity expert SailPoint is making waves this week. The Texas-based company has agreed to be acquired by private equity firm Thoma Bravo.

The all-cash deal, which values SailPoint at $6.9 million, will take the company private. SailPoint debuted on the New York Stock Exchange under the ticker SAIL in 2017. As part of the transaction, SailPoint stockholders will receive $65.25 per share, which represents a premium of 48% to the company’s 90-day volume-weighted average price. 

SailPoint cited multiple benefits of the new arrangement. As a private firm, the company will have increased flexibility and resources to provide identity security solutions. Additionally, SailPoint can now tap into Thoma Bravo’s operating capabilities, capital support, and software expertise. “The transaction will also allow us to pursue our long-term growth trajectory with greater flexibility and effectiveness to support our customers, expand our markets, and accelerate innovation in identity security with the backing of a strong financial partner with deep sector expertise,” said SailPoint Founder and CEO Mark McClain.

The deal comes at a time of increased interest in cybersecurity. Because many employees are still working at home after the pandemic, fraudulent attackers are taking advantage of increased security vulnerabilities. Additionally, experts have warned of potential cyber threats arising from the Russia-Ukraine war.

“SailPoint is ideally positioned to capitalize on the large and growing demand from modern enterprises for robust identity security solutions that secure their business and reduce risk,” said Thoma Bravo Managing Partner Seth Boro. “Their market-leading identity security platform provides the autonomous and intelligent approach that the market requires today, especially among larger enterprises and as hybrid working becomes more common.”

The transaction is expected to close in the second half of 2022.

Photo by Kelly Sikkema on Unsplash