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Symantec Partnership Follows Its Investment In LifeLock

VentureWire, 7 August 2009

Symantec Corp. has launched a sales partnership with identity theft prevention company LifeLock Inc., building off an earlier investment in the start-up.

Protect Your Identity with Cedit WatchThe partnership between the two companies will include bundling the two companies' products, educational outreach and a joint lobbying effort for stronger penalties for identity thieves.

Publicly traded Symantec made a "small strategic investment" in Tempe, Ariz.-based LifeLock's recent financing round, according to a Symantec spokeswoman. News of Symantec's investment was reported earlier by VentureBeat.

In May, LifeLock raised a $40.1 million equity round, according to a filing with the Securities and Exchange Commission. Prior to that the company raised $37.9 million across three venture rounds. Investors include Bessemer Venture Partners, Knightsbridge Capital, Goldman Sachs & Co. and Kleiner Perkins Caufield & Byers.

Bob Krakauer, LifeLock's chief financial officer, declined to confirm the amount of the round but said that in addition to Symantec, the round included a new investment from a Memphis-based venture fund.

For $10 a month, LifeLock guards customers' credit by automatically adding fraud alerts to their credit reports, which means creditors must call the person to verify that they are applying for a loan.

Though LifeLock's marketing efforts on radio, print and television get the most attention, the company has been making business partnerships a larger part of its effort.

The deal with Symantec is its largest to date, but it has scored others, including a deal with AAA.

LifeLock's board includes David Cowan of Bessemer Venture Partners and Gene Yoon of Goldman Sachs & Co. In May, the ID theft-prevention company raised $40 million in part from new sales partner Symantec.

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The number and overall cost of identity theft cases continue to grow every year as a result of a multitude of factors that include a tough economic environment, tough labor market, the increasing trend towards digitalization of personal information, the lack of stringent data security measures from organizations handling data and personal information, and lack of prudence on the part of consumers about the importance of protecting their personal information. Identity theft is an issue that is not easy to detect until it is too late. Furthermore, identity theft is also not easy to comprehend until a person experiences it firsthand. A proactive approach to identity theft protection is highly recommended as opposed to one that is more reactive.

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