Friday Funding: Drata Doubles Its Valuation
Funding for Cybersecurity
San Diego-based cybersecurity firm Drata recently raised another $200 million in a Series C round, led by ICONIQ Growth and GGV Capital. This most recent funding round brings Drata’s total valuation to $2 billion.
If you haven’t heard of Drata yet, it’s probably because the company just raised its seed round in January 2021. However, the company is growing fast. It reached unicorn status — denoting startups valued at $1 billion — by the end of 2021. Now, just a year later, it has grown by that same amount, again.
Drata’s platform helps companies ensure that they are staying compliant with government regulations and professional frameworks, such as HIPAA, GDPR, and SOC 2.
In the words of CEO Adam Markowitz, Drata is “designed to bridge the gap between compliance and trust through automation.” In other words, Drata’s system helps companies “color inside the lines” across a range of industries and programs, automatically.
For many companies, staying compliant with industry rules and regulations is a top concern, as it builds user trust and retains customers — all while keeping the lights on. By automating the compliance process, which is notoriously complex, Drata hit on a key demand, and appears to be primed to capitalize on it.
With emerging technologies like cryptocurrency and artificial intelligence gaining momentum, and interest in consumer data and privacy increasing, compliance and risk management have dominated conversations in and about the tech industry.
For consumers, seeing a company like Drata achieve such scale and momentum is promising. It shows that, on an industry level, compliance is being taken seriously. Hopefully, Drata will successfully deploy its newfound funding to continue to grow, creating a safer world for both companies and consumers.
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