Australian VC OIF Ventures makes first major kiwi investment

Australian VC firm OIF Ventures has made its first significant investment into New Zealand, leading a $2.7 million round into security software company DataMasque.

Other investors included Icehouse Ventures and other local and international VC firms. 

DataMasque, which was founded in 2021, solves the problem of how to securely use large amounts of digital customer data.

As businesses build new products or upgrade their services they typically use their own customer data during this testing phase, which creates a vulnerability to cyber criminals. DataMasque provides a simple and effective way to replace that sensitive data with realistic alternatives that reduce risk.

DataMasque says data breaches have become a fact of life and according to RiskBasedSecurity reports, unauthorised access to databases and services has been the key reason behind many of them.

CEO Grant de Leeuw says this is an untapped opportunity to change the game for data protection.

“While the use cases vary – from masking development and testing environments to de-identifying personal information for Large Language Model [LLM] training – the same premise applies: organisations have an obligation to protect the customer data they have been entrusted with,” says de Leeuw.

Earlier this year global data security watchdog, the Swiss-based International Organisation for Standardisation (ISO) introduced privacy standards for international businesses to protect customer data.

One of the introduced standards, ISO 27001, made it a requirement for businesses to include data masking as a customer security control. 

The ISO’s standards also cover who can modify, move or delete that personal data. 

Global focus 

DataMasque generates 75 percent of its revenue from Europe, North America and Australia. It plans to use the capital raised to expand its team globally and continue developing its market-leading masking solution. 

Existing clients include Best Western Hotel Group, data management platform Cohesity, global healthcare and financial services organisations, alongside telecommunications and government agencies in Australia and New Zealand.

Despite only operating for two years, the Auckland-based startup has won customers operating in highly regulated industries, says OIF principal Isabella Rich.

“We have strong experience in partnering with cybersecurity companies and we are excited to be on the journey with the DataMasque team,” she says.

Rich says data security is now indispensable for modern companies.

“Data security is top of mind in boardrooms. The inclusion of ‘data masking’ in ISO 270001 regulation in October 2022 and recent breach incidents has only made the requirement of data masking clearer,” she says. 

Established in 2016, OIF Ventures differs from other Australasian VC firms in that it raises its capital from high-net-worth individuals, including tech company founders, and it raised an oversubscribed A$140 million third fund last year. The VC firm prefers to invest in early-stage companies operating in the business products, business services, and information technology sectors.

Icehouse Ventures partner Barnaby Marshall says DataMasque is an example of a local business solving a global problem.

"Sensitive data within large businesses is increasingly a desirable target of hackers. Hearing real-life stories of people that have had bank accounts defrauded, assets purchased in their name unknowingly, and their identity used nefariously made us convinced of the problem DataMasque is solving,” says Marshall.

“The demand the company have seen is huge, and only just beginning. The strong brand New Zealand has globally as being trustworthy business partners bodes well for DataMasque’s ability to win big customers abroad,” he says.