Vanta, a startup that helps organizations comply with cybersecurity standards, became a unicorn this week. The San Francisco-based company secured a funding of $110 million at a valuation of $1.6 billion.
Vanta Inc. has secured $110 million in a fundraising round headed by Craft Ventures at a valuation of $1.6 billion.
Sequoia Capital, Y Combinator, and other current investors joined in the Series B financing, according to the San Francisco-based startup, which helps enterprises comply with cybersecurity regulations.
Enterprise software developers must guarantee that their apps process client data securely as part of their product development activities. They accomplish this with the assistance of industry standards such as SOC 2.
These standards define a set of cybersecurity requirements that a software product must achieve in order to properly secure the business data of its customers.
Vanta offers a technology that makes it easier to meet cybersecurity criteria. SOC 2 as well as ISO 27001, another widely used standard with a similar focus, are supported by the platform.
Vanta also claims to make it easier to comply with industry-specific data protection rules and privacy requirements like GDPR.
Because there are so many regulations to follow, compliance projects typically necessitate a large amount of physical labor.
The procedure is especially difficult for businesses with a large number of internal apps. Many of the software solutions that a firm utilizes to support business operations must meet the requirements established in standards such as SOC 2.
Vanta claims to automate most of the process’s laborious labor. The platform of the firm includes hundreds of connectors for cloud services, cybersecurity software, and other apps that businesses rely on to run their operations.
Vanta’s platform uses the integrations to automatically review each application to see if it is set in line with security standards. Companies may utilize Vanta’s findings to inform their compliance initiatives. The startup’s software identifies opportunities for development, such as if a corporation should update the encryption settings on a certain device. The platform also includes capabilities that make it easier to create cybersecurity reports.
In a blog post, Vanta co-founder and CEO Christina Cacioppo stated, “Vanta’s goal to safeguard the internet has never been more prescient or vital.” “Once a corporation has configured its systems in line with a standard like SOC 2, it must pass an external audit to demonstrate compliance.”
Vanta claims that their software can continually examine a company’s systems to discover emerging compliance concerns. Vanta claims that its technology decreases the amount of manual labour needed in security assessments by up to 90%. As a consequence, businesses may achieve compliance with cybersecurity and privacy regulations more quickly.
Vanta said in May that it was generating more than $10 million in yearly recurring revenue following its last funding round. The firm claimed to have over 1,000 clients at the time. On the occasion of its most recent funding round, the firm said that its platform is currently used by over 3,000 organizations.
Vanta intends to use the cash from its most recent round of fundraising to improve its compliance and cybersecurity skills.