Venture Capital: OneTrust, The Privacy And Compliance Platform Raises $300M
OneTrust’s valuation is now $5.1 billion, up from $2.7 billion in February.
OneTrust is a fast-growing provider of privacy, security, and compliance software. The startup, which was launched in 2016, announced Monday its raise of $300 million in a Series C funding round that valued it at $5.1 billion. TCV led the round, with existing investors such as Insight Partners and Coatue also chipping in. (CISION PRNewswire)
Fast growth, even faster funding
OneTrust has garnered 7,500 customers since its founding and is adding a thousand additional customers every quarter. More than half of the Fortune 500 companies use its services which include compliance with global privacy, security, and compliance requirements.
Companies must ensure their operations are in line with regulations such as GDPR, CCPA, LGPD, ISO 27001, NIST, DOJ Guidelines, and hundreds of other laws and frameworks.
According to Gartner, 65% of the world’s population would be covered under privacy regulations by 2023 versus just 10% currently.
Ryan O’Leary, senior research analyst, Legal, Risk, and Compliance at IDC, said in a report that “OneTrust is leading the market outright and showing no signs of slowing down or stopping.”
Keeping pace with OneTrust’s growth are large-value funding rounds at progressively higher valuations.
In July 2019, it raised $200 million at a valuation of $1.3 billion. The next funding of $210 million, in February 2020, valued the start-up at $2.7 billion. The company has therefore raised $ 710 million in funding in less than 18 months and nearly quadrupled its valuation during that time.
Interestingly, OneTrust had cash leftover from its previous funding rounds but went ahead with the current fundraising. “We were excited when TCV approached us for an investment. Even with most of our previously raised funds still available, their partnership allows us to further accelerate our mission, leverage our capital and currency to drive organic and inorganic growth, and deliver for our customers and partners long term.”
“Consumers and regulators are demanding that every company on the planet comply with complex and ever-evolving privacy regulations,” said Tim McAdam, General Partner at TCV. “There are hundreds of regulatory initiatives in the works emanating from all major countries. OneTrust has emerged as the runaway SaaS leader in the trust and privacy arena.”
Use of funds
OneTrust will use the money to further boost its growth, new recruitments, and future acquisitions. According to TechCrunch, the company has already made four acquisitions in the four years since its founding.
In an interview with Bloomberg, co-Chairman Alan Dabbiere referred to OneTrust’s 2019 purchase of privacy laws specialist DataGuidance. “These are the kinds of creative acquisitions that have driven our growth and success,” he said.
Dabbiere also told Bloomberg that the company was considering an IPO, though no timing had been decided.
“It’s part of a natural progression for technology companies of a certain size and scale,” he said.
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