Behind the scenes: Carlyle leverages SESAMm’s alternative data for a $475 million investment in YipitData
February 8, 2022
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5 mins read
Context
In December 2021, Carlyle led a $475 million Series E funding round for YipitData. As part of its diligence process, Carlyle used SESAMm’s Natural Language Processing (NLP) models to help inform this investment decision.
Results
YipitData is an alternative data firm that extracts billions of data points from the web and other alternative data sources to generate proprietary data and KPIs on industries and individual companies.
SESAMm’s TextReveal® platform enabled Carlyle to extract valuable insights on the alternative data market to assess the global market opportunity based on the analysis of more than 17 billion web articles and messages. Using NLP in its due diligence process, Carlyle’s deal team was able to confirm YipitData’s leading market position and growth prospects across multiple industries and geographies. Furthermore, a risk analysis drawn from social discussions, anonymous forums and dark web content concluded there was very low risk associated with the company.
SESAMm provided valuable insights based on the analysis of billions of documents for this specific deal and helped translate unstructured contents into industry-level trends, competitive insights and risk analytics. These types of analytics can add value to the entire investment lifecycle, from sourcing to due diligence and portfolio monitoring — providing investment teams with key insights to assess investment opportunities and build a competitive edge.
“SESAMm provided us with valuable and timely insights for our investment process through its NLP alternative data. They helped us gain even more confidence in YipitData’s strong potential by confirming the company’s leading position. We are very happy with the insights provided by SESAMm and look forward to further collaborations.” Senior Associate – Technology Private Equity, The Carlyle Group
The rapid growth of social media companies has created significant ESG challenges, particularly in the areas of data privacy, content moderation, and corporate governance.
Meta and ByteDance, in particular, have been hit with lawsuits and fines related to data breaches, privacy violations, harmful content affecting minors, labor practices, and antitrust, with regulatory bodies across the US, EU, and Asia increasing scrutiny of their data collection practices.
Let’s dive into some of the key ESG challenges facing the social networking industry.
Meta Platforms Inc.: Privacy Breaches and Regulatory Scrutiny
Meta, the mother company of some of the most used social platforms, Facebook, Instagram, and WhatsApp, has faced numerous ESG challenges over the years, including privacy breaches, data misuse, and content moderation issues. 2025 is off to a rocky start, with the company facing a new lawsuit over personal data usage for targeted ads. In 2024, Meta was fined €251 million for a 2018 data breach and faced fines in South Korea and Nigeria for unlawful data collection and antitrust trials regarding Instagram and WhatsApp. In 2023, it addressed issues related to minors and employee treatment. Previous years included fines over the Cambridge Analytica scandal and minors' privacy violations, highlighting ongoing governance and privacy risks amidst regulatory scrutiny.
ByteDance Ltd (TikTok): National Security Risks and Content Concerns
In recent years, TikTok has faced significant ESG risks as U.S. politicians labeled it a national security threat, leading to data privacy concerns and investigations in the EU. By 2022, it incurred major fines, including a £27 million penalty in the UK for data breaches. In 2023, child safety and harmful content lawsuits increased, prompting government bans on official devices in the U.S., UK, and EU. In 2024, TikTok lost its appeal against a U.S. ban, while countries like Canada and Albania imposed restrictions. A 2025 Supreme Court ruling heightened the risk of a complete ban, highlighting ongoing legal challenges.
Since Elon Musk's acquisition of X (formerly Twitter), the platform has faced major controversies over hate speech and misinformation. Legal issues from the $44 billion buyout and a $150 million settlement for security breaches surfaced in 2022, along with fines in Russia and India. In 2023, X received backlash for hosting anti-Semitic content, leading to advertiser losses and lawsuits. The EU initiated investigations into disinformation, and by 2024, X faced fines in Brazil and Australia, GDPR complaints, and class action lawsuits related to age discrimination and mass layoffs, raising concerns about its online impact.
Kakao has faced moderate ESG risks, notably privacy issues and market behavior controversies. In 2024, the company was fined $11.1 million due to a KakaoTalk data breach. Additionally, in 2023, Kakao faced investigations over market manipulation linked to its SM Entertainment acquisition and experienced security vulnerabilities enabling fraudulent activities. Despite these concerns, Kakao's service outages and monopolistic practice allegations have had less severe impacts compared to industry peers.
REDnote (Xiaohongshu) has fewer ESG issues compared to its peers, facing challenges primarily related to censorship, privacy, and regulatory compliance. In 2025, Texas banned its use on government devices due to security concerns. Earlier, REDnote encountered legal challenges over AI-generated art copyrights (2023), a Taiwan-imposed national security ban (2022), layoffs due to restructuring (2022), and fines by Chinese regulators for inappropriate content involving minors (2021).
The social networking industry continues to grapple with significant ESG challenges related to data privacy, harmful content, and corporate governance. Major companies such as Meta, ByteDance, X Corp, KakaoTalk, and REDnote face ongoing regulatory scrutiny, fines, and lawsuits, highlighting persistent ethical concerns. While these issues pressure platforms to improve transparency and governance practices, they also underscore the industry's substantial risks and responsibilities to users and stakeholders.
Reach out to SESAMm
TextReveal’s web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.
As SESAMm commemorates its 10th anniversary, we take a moment to reflect on a decade marked by significant achievements and invaluable lessons. This journey from a nascent startup to a leader in AI-powered ESG analytics has been both challenging and exhilarating. Through this walkthrough, I aim to share the pivotal milestones that have defined our path, the wisdom we have accrued, and the exciting prospects that lie ahead. These reflections not only encapsulate our past and present but also pave the way for the innovative strides we are poised to make in the future.
A Decade of Innovation and Growth: SESAMm’s 10 Key Milestones
As we celebrate SESAMm's 10th anniversary, I find it humbling and inspiring to reflect on our incredible journey. From our earliest days to our success, each milestone has shaped who we are today. Here’s a personal reflection on the ten key milestones defining our journey.
The Beginning - Winning the SEMIA Prize (2013): Everything started when we received the SEMIA entrepreneurship prize, supported by Société Générale with €10,000. This funding was crucial—it transformed our project from an academic idea into a viable business venture, marking our first serious step towards entrepreneurship.
Forming the Company (April 2014): The decision to officially form SESAMm as a company and my transition to CEO brought both excitement and a profound sense of responsibility. It was a commitment not just to our ideas but to leading a team towards realizing them. There’s a funny anecdote that happened during this period. I was still at school but had to do an internship to finish my studies, so I did it at SESAMm while being the CEO. So I was the CEO and an intern at the same time!
Securing Our First Client (Late 2015): Convincing a London trading firm to start using our products for actual trading activities was our first major market validation. This not only helped us fund our initial operations but also boosted our confidence in the potential of our technology. It helped us onboard other clients in the months thereafter.
Moving and Expanding (November 2015): This period was marked by significant changes, including a successful fundraising effort and relocating our headquarters to Metz. These moves were essential for scaling our operations and preparing for future growth.
Expanding Our Team (Early 2016): Hiring our first dedicated researchers in AI and finance was a key development that enhanced our capabilities dramatically. This expansion allowed us to accelerate our technology development and better serve our clients. It also helped us open our first office in Paris, which allowed us to bring the right talent to continue our development.
Seed Funding Round (2017): Raising €2.6 million in seed funding was a milestone that endorsed our market presence and bolstered our financial stability. We got the opportunity to work with major European asset managers and banks, allowing us to pursue broader objectives and refine our technological offerings.
International Expansion (2019): The expansion into New York and Tunisia was not just a geographical growth but also a strategic pivot focusing on the US, an ambitious plan to tackle the biggest market in the world. We also saw an opportunity to help more firms by incorporating ESG indicators into our services, reflecting our commitment to sustainability.
Establishing in Tokyo (2021): Opening an office in Tokyo was a strategic move to capture opportunities in the Asian markets and broaden our international footprint, which has been instrumental in our global strategy.
Series A Round (2021): The €7.5 million raised from entities like Carlyle and New Alpha was key in scaling our operations and enhancing our credibility in the fintech space globally. Although the fundraising part was critical, it also came with our first major private equity client in the US, Carlyle. That was a big validation in the market which increased our credibility with other firms in the space, leading us to work with the top 7 private equity companies.
A New Phase of Growth (2023): Closing a €35 million funding round was a testament to our growth and the trust investors have in our vision. This milestone coincided with another big one, hiring our 100th employee. The company cemented its position as a leader in ESG AI-powered insights.
“These last ten years have given us the opportunity to grow from a small team to a community ready to tackle any challenge. We learned together the importance of building a product that addresses market needs and prioritizes companies' responsibility for a better future.”
Florian Aubry, CTO & cofounder.
Top Ten Lessons Learned in Ten Years
Here's a reflection on the key insights that have guided our growth and innovation.
Be Ambitious: The journey of SESAMm taught us the power of ambition, and not the voracious kind, but a realistic yet big and aspirational one. Inspired by Sam Altman's advice, "Ask for what you want," we learned early on that setting high goals helps achieve them. Whether it was funding rounds or product development, a clear vision and bold aspirations were crucial.
Be Nice: Contrary to traditional aggressive management styles, we embraced kindness as a core value. This approach has not only improved our internal culture but also helped us build lasting relationships with partners and clients.
Stay Focused: Our focus has matured from developing a technology platform to progressively gaining the necessary laser focus on product market fit. This singular focus has been instrumental in navigating the complexities of the tech and financial markets, with a focus on enhancing our ESG insights that assist our clients in making the right decisions.
Trust People: At SESAMm, we believe in trusting our team by default. This trust has empowered our employees, fostered innovation, and driven our company forward. It’s about giving people ownership and believing in their capacity to succeed.
Client-Centric Approach: We prioritize exceptional customer service and cherish every client relationship. Our goal is to solve real problems and ensure that clients speak highly of us, even if our paths diverge.
Preserve Co-Founder Relationships: We've seen how disputes among founders can derail startups. At SESAMm, we make decisions collectively, emphasizing harmony and shared goals over individual agendas. 10 years later, our founding team is as strong and tight as ever.
Respect Your Investors: Our investors are not just funders; they are partners in our journey. Acknowledging their role and integrating their insights into our decision-making process has been vital for our growth.
Play the Long Game: Success in the startup world is not overnight. It takes perseverance and a long-term perspective to build a lasting enterprise. We emphasize sustainable growth and well-being over quick gains.
Enjoy the Journey: Amidst the hustle, it’s important to enjoy the process. At SESAMm, we aim to cherish every moment - whether it’s a breakthrough in a project or a casual team outing. These experiences enrich our work and lives.
Understand the Technology: As a tech-driven company, maintaining a deep understanding of our technology as founders - particularly AI - is fundamental. This ensures we can innovate effectively and make informed decisions.
Reflecting on these lessons as we look forward to the next decade, we are reminded of how far we've come and how these principles will continue to guide us.
“With a blend of humility and passion, we have boldly pursued our vision, guided by our hearts and intuition. By refining our initial business model, we have achieved remarkable success while remaining true to our core values.”
Pierre Rinaldi, COO & co-founder.
Charting the Future: SESAMm’s Strategic Vision for Advancing AI and ESG Innovation
As we move forward at SESAMm, I am personally very excited about the innovative strides we are making across multiple fronts. We are poised to roll out new generative AI features, including a dynamic AI assistant designed to streamline and enhance our offerings. We're also updating our ESG taxonomy to include the latest regulatory changes, ensuring that our products stay relevant and compliant.
Improving the accuracy and scope of our data remains a priority, and we are expanding our ESG indicators to provide a more comprehensive view of potential impacts. This enhancement will allow us to offer nuanced insights that go beyond traditional metrics.
Our index business is set for expansion with promising new applications leveraging ESG data and the potential for fruitful partnerships, leveraging our cutting-edge technology to explore new markets.
From a client engagement perspective, we are focused on making it easier for potential clients to understand why SESAMm is the superior choice. This involves clarifying our value proposition, which is built on unmatched service quality, extensive coverage, and a competitive edge that sets us apart from our rivals.
Geographically, we are significantly ramping up our efforts in North America, where demand for ESG-oriented solutions is growing rapidly. To support this expansion, we are investing in our team, ensuring we have the right people in place to drive our success in these new markets.
Through these focused efforts, we at SESAMm are not just aiming to maintain our leadership position in AI and financial analytics but are also setting new benchmarks for excellence and innovation in the sector.
Reflecting on the past decade, SESAMm is a testament to the power of innovation, teamwork, and perseverance. The milestones we have celebrated and the lessons we have learned form the bedrock of our enterprise, guiding us as we navigate the future. As we look ahead, our focus remains steadfast on enhancing our technological capabilities, expanding our global footprint, and delivering exceptional value to our clients. Moreover, we are deeply committed to advancing our ESG and sustainability efforts, which are integral to our business philosophy and strategic planning. With a dedicated team, a clear vision, and a robust approach to integrating ESG principles across all our operations, SESAMm is well-positioned to continue its journey of growth and innovation. Here's to the next decade of transforming challenges into opportunities and setting new standards in the financial technology landscape while promoting sustainable and responsible business practices.
SESAMm’s AI Technology Reveals ESG Insights
Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.
The first and second parts of this series discussed the differences between public and private companies from the Environmental, Social, and Governance (ESG) and the United Nations Sustainable Development Goals (UNSDG) perspectives. In this part, we’re using IKEA as a prime example; we can explore how its private ownership impacts its sustainability practices and governance. This analysis aims to reveal how IKEA's strategies align with broader ESG goals, shedding light on the implications of private versus public company frameworks.
We chose IKEA as an example for this use case for two main reasons. Firstly, as a private company, it provides a suitable basis for comparison with other private companies in the same industry. Secondly, IKEA is known for promoting sustainable practices, such as using renewable energy, responsibly sourced materials, and minimizing waste. However, despite the company's claims about the eco-friendliness of its products, our goal is to investigate whether these claims and products are perceived as environmentally friendly. We also aim to identify any issues affecting any of its stakeholders beyond the environment.
ESG Industry Benchmark
In our study, we focused on a detailed comparative analysis of IKEA's Environmental, Social, and Governance (ESG) risk mentions over the past three years, particularly in the context of the consumer discretionary sector. Our findings indicate a lower prevalence of environmental controversies both for IKEA and the sector overall. However, regarding governance risks, the consumer discretionary sector appears to encounter these issues more frequently than IKEA does.
Figure 1: ESG risks in IKEA and Consumer Discretionary.
On the other hand, IKEA stands out with a more significant presence of social risks than the sector average. This includes a notable number of product safety concerns, exemplified by instances of product recalls due to choking hazards, laceration risks, and even products infested with bugs. The analysis also brought to light several instances of human rights breaches at IKEA, particularly concerning privacy issues, such as data leaks and illegal filming incidents involving staff and customers. Labor rights violations are another area of concern, with instances ranging from union-busting activities to allegations of religious and gender discrimination within the company. Additionally, human capital risks are conspicuous, with mentions of strikes driven by dissatisfaction over wages and layoffs, as well as health and safety issues. Risks in customer relations have also been documented, including incidents of overcharging customers and discriminatory practices against certain customer groups.
Detecting ESG Risks Through the Industry SDG Lens
In our comparative analysis of IKEA's controversies against the average adverse behaviors in its sector concerning the Sustainable Development Goals (SDGs), we noticed both similarities and distinctions. A key finding is that Goal 1, "End poverty," features prominently for both IKEA and the sector, highlighting a common vulnerability to controversies under this goal.
These breaches predominantly pertain to issues around labor rights and human capital, aligning with the findings from our ESG controversy analysis. Additionally, a smaller yet significant portion of controversies is linked to internal control deficiencies within the company. This pattern suggests that both IKEA and its sector face similar challenges in addressing labor rights and human capital issues, contributing to breaches of Goal 1. In examining the differences, Goal 3, "Health and well-being," stands out for IKEA, exceeding the sector norm. This is largely attributed to numerous product recalls, alongside health and safety concerns related to IKEA's workforce. Moreover, in Goals 11 ("Sustainable Cities") and 12 ("Responsible Production and Consumption"), IKEA shows a higher-than-average proportion of controversies, mainly due to issues in human capital and customer relations. This highlights a specific focus on product safety and human capital challenges at IKEA, pointing to areas of heightened risk or difficulty compared to industry peers. Additionally, our study reveals distinct variations in Goals 9 ("Industry, Innovation, and Infrastructure") and 16 ("Peace, Justice, & Strong Institutions"), where IKEA shows a lower proportion of issues compared to the sector average. This suggests that, unlike its industry counterparts, IKEA has been more effective in mitigating risks in these areas.
Detecting ESG Risks Through the Industry SDG Lens
Our methodology analyzes the controversies detected for IKEA and maps them to identify which ones constitute breaches of the United Nations Global Compact (UNGC) principles.
Figure 2: UNGC principles in IKEA and Consumer Discretionary.
Consistent with the identified ESG risks, human rights breaches at IKEA are notably more prominent than the sector average. This is primarily due to multiple instances of privacy, security, and dignity violations, as well as issues in diversity & inclusion. Additionally, labor rights issues at IKEA, while exceeding the industry average, are not markedly higher. Our study also reveals that IKEA has a slightly higher proportion of breaches in the environmental pillar compared to its sector. These include incidents like gas leaks, allegations of greenwashing, and cases of illegal logging.
Conclusion
ESG controversies and breaches of SDG goals vary notably between public and private sectors. Public companies frequently encounter more visible and consistent ESG risks, while private companies, although subject to less scrutiny, experience significant impacts when controversies do occur. The case study of IKEA particularly sheds light on the unique challenges faced in product safety and human capital. This highlights the critical need for rigorous and proactive risk management strategies to maintain sustainable corporate practices tailored to the specific nature and scale of the entity in question.
Download the full report to discover how different sectors navigate regulatory pressures and sustainability challenges with real-world examples to guide your strategy.
Reach out to SESAMm
TextReveal’s web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.
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