Jul
23
2019
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CircleCI closes $56M Series D investment as market for continuous delivery expands

CircleCI launched way back in 2011 when the notion of continuous delivery was just a twinkle in most developers’ eyes, but over the years with the rise of agile, containerization and DevOps, we’ve seen the idea of continuous integration and continuous delivery (CI/CD) really begin to mainstream with developers. Today, CircleCI was rewarded with a $56 million Series D investment.

The round was led by Owl Rock Capital Partners and Next Equity. Existing investors Scale Venture Partners, Top Tier Capital, Threshold Ventures (formerly DFJ), Baseline Ventures, Industry Ventures, Heavybit and Harrison Metal Capital also participated in the round. CircleCI’s most recent funding prior to this round was a $31 million Series C last January. Today’s investment brings the total raised to $115.5 million, according to the company.

CircleCI CEO Jim Rose sees a market that’s increasingly ready for the product his company is offering. “As we’re putting more money to work, there are just more folks that are now moving away from aspiring about doing continuous delivery and really leaning into the idea of, ‘We’re a software company, we need to know how to do this well, and we need to be able to automate all the steps between the time our developers are making changes to the code until that application gets in front of the customer,’ ” Rose told TechCrunch.

Rose sees a market that’s getting ready to explode and he wants to use the runway this money provides his company to take advantage of that growth. “Now, what we’re finding is that fintech companies, insurance companies, retailers — all of the more traditional brands — are now realizing they’re in a software business as well. And they’re really trying to build out the tool sets and the expertise to be effective at that. And so the real growth in our market is still right in front of us,” he said.

As CircleCI matures and the market follows suit, a natural question following a Series D investment is when the company might go public, but Rose was not ready to commit to anything yet. “We come at it from the perspective of keeping our heads down trying to build the best business and doing right by our customers. I’m sure at some point along the journey our investors will be itching for liquidity, but as it stands right now, everyone is really [focused]. I think what we have found is that the bulk of the market is just starting to arrive,” he said.

Jul
23
2019
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Arrcus snags $30M Series B as it tries to disrupt networking biz

Arrcus has a bold notion to try and take on the biggest names in networking by building a better networking management system. Today it was rewarded with a $30 million Series B investment led by Lightspeed Venture Partners.

Existing investors General Catalyst and Clear Ventures also participated. The company previously raised a seed and Series A totaling $19 million, bringing the total raised to date to $49 million, according to numbers provided by the company.

Founder and CEO Devesh Garg says the company wanted to create a product that would transform the networking industry, which has traditionally been controlled by a few companies. “The idea basically is to give you the best-in-class [networking] software with the most flexible consumption model at the lowest overall total cost of ownership. So you really as an end customer have the choice to choose best-in-class solutions,” Garg told TechCrunch.

This involves building a networking operating system called ArcOS to run the networking environment. For now, that means working with manufacturers of white-box solutions and offering some combination of hardware and software, depending on what the customer requires. Garg says that players at the top of the market like Cisco, Arista and Juniper tend to keep their technical specifications to themselves, making it impossible to integrate ArcOS with those companies at this time, but he sees room for a company like Arrcus .

“Fundamentally, this is a very large marketplace that’s controlled by two or three incumbents, and when you have lack of competition you get all of the traditional bad behavior that comes along with that, including muted innovation, rigidity in terms of the solutions that are provided and these legacy procurement models, where there’s not much flexibility with artificially high pricing,” he explained.

The company hopes to fundamentally change the current system with its solutions, taking advantage of unbranded hardware that offers a similar experience but can run the Arrcus software. “Think of them as white-box manufacturers of switches and routers. Oftentimes, they come from Taiwan, where they’re unbranded, but it’s effectively the same components that are used in the same systems that are used by the [incumbents],” he said.

The approach seems to be working, as the company has grown to 50 employees since it launched in 2016. Garg says that he expects to double that number in the next six-nine months with the new funding. Currently the company has double-digit paying customers and more than 20 in various stages of proofs of concepts, he said.

Jul
23
2019
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Analytics startup Heap raises $55M

Since co-founding Heap, CEO Matin Movassate has been saying that he wants to take on the analytics incumbents. Today, he’s got more money to fund that challenge, with the announcement that Heap has raised $55 million in Series C funding.

Movassate (pictured above) previously worked as a product manager at Facebook, and when I interviewed him after the startup’s Series B, he recalled the circuitous process normally required to collect and analyze user data. In contrast, Heap automatically collects data on user activity — the goal is to capture literally everything — and makes it available in a self-serve way, with no additional code required to answer new queries.

The company says it now has more than 6,000 customers, including Twilio, AppNexus, Harry’s, WeWork and Microsoft.

With this new funding, Heap has raised a total of $95.2 million. The plan is to fund international growth, as well as expand the product, engineering and go-to-market teams.

The Series C was led by NewView Capital, with participation from new DTCP, Maverick Ventures, Triangle Peak Partners, Alliance Bernstein Private Credit Investors, Sharespost and existing investors (NEA, Menlo Ventures, Initialized Capital and Pear VC). NewView founder and managing partner Ravi Viswanathan is joining the startup’s board of directors.

“Heap offers an innovative approach to automating a company’s analytics, enabling a variety of teams within an organization to obtain the data they need to make educated and, ultimately, smarter decisions,” Viswanathan said in a statement. “We are excited to team up with Heap, as they continue to develop their cutting edge software, expand their analytics automation offerings and help serve their growing numbers of customers.”

Jul
23
2019
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TrustRadius, a customer-generated B2B software review platform, raises $12.5M

Customer reviews play a key role in helping people decide what to buy on consumer-focused marketplaces like Amazon or app stores, and the same tendency exists in the B2B world, where nearly half a trillion dollars is spent annually on software and IT purchases. TrustRadius, one of the startups capitalising on the latter trend, with total feedback sessions today standing at close to 190,000 reviews, has now picked up a Series C of $12.5 million led by Next Coast Ventures, with existing investors Mayfield Fund and LiveOak Ventures also participating.

The funding, which brings the total raised by TrustRadius to $25 million (modest compared to some of its competitors), will be used to build more partnerships and use cases for its reviews, as well as continue expanding that total number of users providing feedback.

In addition to its main site — which goes up against a huge number of other online software comparison services like TrustPilot, G2 Crowd, Owler and many others — TrustRadius is already working with vendors like LogMeIn, Tibco and more (including a number of huge IT companies that have asked not to be named).

TrustRadius mainly works with them on two tracks: to source a wider range of reviews from their existing customer bases to improve their profiles on the site; and then to help them use those reviews in their own marketing materials. Partnerships like these form the core of TrustRadius’s business model: people posting reviews or using the site to read them access it for free.

Vinay Bhagat, founder and CEO of TrustRadius, believes that his company’s mission — to help IT decision makers vet software by tapping into feedback from other IT buyers — has found particular relevance in the current market.

“I think that gravity is on our side,” he said in an interview. “If you think about how the tech industry is evolving and getting things done, IT decisions are getting decentralized and moving out of the CIO’s office. Millennials are ageing into positions of authority, and it means that the way people had previously bought software — by way of salespeople or on the basis of analyst reports — are changing. There is pent-up demand to hear the roar of peers and that’s where we come in.”

User-generated reviews have come under a lot of criticism in recent times. Regulators have been going after companies for not being vigilant enough about policing their platforms for “fake” reviews, either planted to big-up a product, or by rivals to knock it down, or coming from people who are being paid to put in a good word. The argument has been that the marketplaces hosting those reviews are still bringing in eyeballs and product conversions based on that feedback, so they are less concerned with the corruption even if it longer term can likely sour consumers on the trustworthiness of the whole platform.

That belief is not wholly true, of course: Amazon for one has recently been making a huge effort to improve trust, by going after dodgy reviewers and setting up systems to halt the trafficking of counterfeit goods.

And Bhagat argued to me that it doesn’t hold for TrustRadius, either. The company has a focused enough mandate — B2B software purchasing — within a crowded enough field, that losing trust by posting blindly positive reviews would get it nowhere fast.

At the same time, he noted that the company has held a firm line with its customers on making sure that the “truth” about a product is made clear even if it’s not completely rosy, in the hopes that they can use that to work on improvements, and also provide more balanced feedback at the least from existing customers in order to give a more complete picture. (It also, like other reviews sites, makes people who provide feedback do so using professional credentials like work emails and LinkedIn profiles.)

That line has so far carried it into relationships with a number of software companies, which are using reviews as a complement to their own sales teams, and the papers and analysis published by analysts like Gartner and Ovum and Forester, to reach people who are weighing up different options for their IT solutions.

“TrustRadius has become an integral part of today’s economic cycle,” said Bill Wagner, CEO of LogMeIn, in a statement. “Software buyers today need detailed reviews to make sure that the product works for a business professional like themselves. TrustRadius provides that in a transparent way, so buyers can make confident decisions, even about enterprise-grade software.”

The recent swing in the digital world toward data protection and people getting increasingly aware of how their own personal details are used in ways they never intended has presented an interesting challenge for the world of online services. Most of us don’t like getting marketing and will generally opt out of any “yes, I consent to getting updates from XYZ and its partners!” boxes — if we happen to spot them amid the dark patterning of the net.

TrustRadius and companies like it have an opportunity through that, though: by targeting IT buyers who have to make complicated purchasing decisions and most likely more than one, and in a way that ensures each purchase works with the rest of an existing tech stack, they represent one of the rare cases where a user might actually want to hear more.

Indeed, one of the company’s plans longer term is to continue developing how it can work with its users through that IT life cycle by providing suggestions of software based on previous software purchases and also what that users’ feedback has been around a past purchase.

“From day one we have been dealing with complex purchasing decisions,” Bhagat said. “Buying technology that will be used to run your business is not the same as buying an app that you use casually. It can be make or break for your company.”

Jul
18
2019
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InCountry raises $15M for its cloud-based private data storage-as-a-service solution

The rise of data breaches, along with an expanding raft of regulations (now numbering 80 different regional regimes, and growing) have thrust data protection — having legal and compliant ways of handling personal user information — to the top of the list of things that an organization needs to consider when building and operating their businesses. Now a startup called InCountry, which is building both the infrastructure for these companies to securely store that personal data in each jurisdiction, as well as a comprehensive policy framework for them to follow, has raised a Series A of $15 million. The funding is coming in just three months after closing its seed round — underscoring both the attention this area is getting and the opportunity ahead.

The funding is being led by three investors: Arbor Ventures of Singapore, Global Founders Capital of Berlin and Mubadala of Abu Dhabi. Previous investors Caffeinated Capital, Felicis Ventures, Charles River Ventures and Team Builder Ventures (along with others that are not being named) also participated. It brings the total raised to date to $21 million.

Peter Yared, the CEO and founder, pointed out in an interview the geographic diversity of the three lead backers: he described this as a strategic investment, which has resulted from InCountry already expanding its work in each region. (As one example, he pointed out a new law in the UAE requiring all health data of its citizens to be stored in the country — regardless of where it originated.)

As a result, the startup will be opening offices in each of the regions and launching a new product, InCountry Border, to focus on encryption and data handling that keep data inside specific jurisdictions. This will sit alongside the company’s compliance consultancy as well as its infrastructure business.

“We’re only 28 people and only six months old,” Yared said. “But the proposition we offer — requiring no code changes, but allowing companies to automatically pull out and store the personally identifiable information in a separate place, without anything needed on their own back end, has been a strong pull. We’re flabbergasted with the meetings we’ve been getting.” (The alternative, of companies storing this information themselves, has become massively unpalatable, given all the data breaches we’ve seen, he pointed out.)

In part because of the nature of data protection, in its short six months of life, InCountry has already come out of the gates with a global viewpoint and global remit.

It’s already active in 65 countries — which means it’s already equipped to store, process and regulate profile data in the country of origin in these markets — but that is actually just the tip of the iceberg. The company points out that more than 80 countries around the world have data sovereignty regulations, and that in the U.S., some 25 states already have data privacy laws. Violating these can have disastrous consequences for a company’s reputation, not to mention its bottom line: In Europe, the U.K. data regulator is now fining companies the equivalent of hundreds of millions of dollars when they violate GDPR rules.

This ironically is translating into a big business opportunity for startups that are building technology to help companies cope with this. Just last week, OneTrust raised a $200 million Series A to continue building out its technology and business funnel — the company is a “gateway” specialist, building the welcome screens that you encounter when you visit sites to accept or reject a set of cookies and other data requests.

Yared says that while InCountry is very young and is still working on its channel strategy — it’s mainly working directly with companies at this point — there is a clear opportunity both to partner with others within the ecosystem as well as integrators and others working on cloud services and security to build bigger customer networks.

That speaks to the complexity of the issue, and the different entry points that exist to solve it.

“The rapidly evolving and complex global regulatory landscape in our technology driven world is a growing challenge for companies,” said Melissa Guzy of Arbor Ventures, in a statement. Guzy is joining the board with this round. “InCountry is the first to provide a comprehensive solution in the cloud that enables companies to operate globally and address data sovereignty. We’re thrilled to partner and support the company’s mission to enable global data compliance for international businesses.”

Jul
17
2019
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Dust Identity secures $10M Series A to identify objects with diamond dust

The idea behind Dust Identity was originally born in an MIT lab where the founders developed the base technology for uniquely identifying objects using diamond dust. Since then, the startup has been working to create a commercial application for the advanced technology, and today it announced a $10 million Series A round led by Kleiner Perkins, which also led its $2.3 million seed round last year.

Airbus Ventures and Lockheed Martin Ventures, New Science Ventures, Angular Ventures and Castle Island Ventures also participated in the round. Today’s investment brings the total raised to $12.3 million.

The company has an unusual idea of applying a thin layer of diamond dust to an object with the goal of proving that that object has not been tampered with. While using diamond dust may sound expensive, the company told TechCrunch last year at the time of its seed round funding that it uses low-cost industrial diamond waste, rather than the expensive variety you find in jewelry stores.

As CEO and co-founder Ophir Gaathon told TechCrunch last year, “Once the diamonds fall on the surface of a polymer epoxy, and that polymer cures, the diamonds are fixed in their position, fixed in their orientation, and it’s actually the orientation of those diamonds that we developed a technology that allows us to read those angles very quickly.”

Ilya Fushman, who is leading the investment for Kleiner, says the company is offering a unique approach to identity and security for objects. “At a time when there is a growing trust gap between manufacturers and suppliers, Dust Identity’s diamond particle tag provides a better solution for product authentication and supply chain security than existing technologies,” he said in a statement.

The presence of strategic investors Airbus and Lockheed Martin shows that big industrial companies see a need for advanced technology like this in the supply chain. It’s worth noting that the company partnered with enterprise computing giant SAP last year to provide a blockchain interface for physical objects, where they store the Dust Identity identifier on the blockchain. Although the startup has a relationship with SAP, it remains blockchain agnostic, according to a company spokesperson.

While it’s still early days for the company, it has attracted attention from a broad range of investors and intends to use the funding to continue building and expanding the product in the coming year. To this point, it has implemented pilot programs and early deployments across a range of industries, including automotive, luxury goods, cosmetics and oil, gas and utilities.

Jul
17
2019
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AlphaSense, a search engine for analysis and business intel, raises $50M led by Innovation Endeavors

Google and its flagship search portal opened the door to the possibilities of how to build a business empire on the back of organising and navigating the world’s information, as found on the internet. Now, a startup that’s built a search engine tailored to the needs of enterprises and their own quests for information has raised a round of funding to see if it can do the same for the B2B world.

AlphaSense, which provides a way for companies to quickly amass market intelligence around specific trends, industries and more to help them make business decisions, has closed a $50 million round of funding, a Series B that it’s planning to use to continue enhancing its product and expanding to more verticals.

The company counts some 1,000 clients on its books, with a heavy emphasis on investment banks and related financial services companies. That’s in part because of how the company got its start: Finnish co-founder and CEO Jaakko (Jack) Kokko had been an analyst at Morgan Stanley in a past life and understood the labor and time pain points of doing market research, and decided to build a platform to help shorten a good part of the information-gathering process.

“My experience as an analyst on Wall Street showed me just how fragmented information really was,” he said in an interview, citing as one example how complex sites like those of the FDA are not easy to navigate to look for new information and updates — the kind of thing that a computer would be much more adept at monitoring and flagging. “Even with the best tools and services, it still was really hard to manually get the work done, in part because of market volatility and the many factors that cause it. We can now do that with orders of magnitude more efficiency. Firms can now gather information in minutes that would have taken an hour. AlphaSense does the work of the best single analyst, or even a team of them.”

(Indeed, the “alpha” of AlphaSense appears to be a reference to finance: it’s a term that refers to the ability of a trader or portfolio manager to beat the typical market return.)

The lead investor in this round is very notable and says something about the company’s ambitions. It’s Innovation Endeavors, the VC firm backed by Eric Schmidt, who had been the CEO of none other than Google (the pace-setter and pioneer of the search-as-business model) for a decade, and then stayed on as chairman and ultimately board member of Google and then Alphabet (its later holding company) until just last June.

Schmidt presided over Google at what you could argue was its most important time, gaining speed and scale and transitioning from an academic idea into a full-fledged, huge public business whose flagship product has now entered the lexicon as a verb and (through search and other services like Android and YouTube) is a mainstay of how the vast majority of the world uses the web today. As such, he is good at spotting opportunities and gaps in the market, and while enterprise-based needs will never be as prominent as those of mass-market consumers, they can be just as lucrative.

“Information is the currency of business today, but data is overwhelming and fragmented, making it difficult for business professionals to find the right insights to drive key business decisions,” he said in a statement. “We were impressed by the way AlphaSense solves this with its AI and search technology, allowing businesses to proceed with the confidence that they have the right information driving their strategy.”

This brings the total raised by AlphaSense to $90 million, with other investors in this round including Soros Fund Management LLC and other unnamed existing investors. Previous backers had included Tom Glocer (the former Reuters CEO who himself is working on his own fintech startup, a security firm called BlueVoyant), the MassChallenge incubator, Tribeca Venture Partners and others. Kokko said AlphaSense is not disclosing its valuation at this point. (I’m guessing though that it’s definitely on the up.)

There have been others that have worked to try to tackle the idea of providing more targeted, and business-focused, search portals, from the likes of Wolfram Alpha (another alpha!) through to Lexis Nexis and others like Bloomberg’s terminals, FactSet, Business Quant and many more.

One interesting aspect of AlphaSense is how it’s both focused on pulling in requests as well as set up to push information to its users based on previous search parameters. Currently these are set up to only provide information, but over time, there is a clear opportunity to build services to let the engines take on some of the actions based on that information, such as adjusting asking prices for sales and other transactions.

“There are all kinds of things we could do,” said Kokko. “This is a massive untapped opportunity. But we’re not taking the human out of the loop, ever. Humans are the right ones to be making final decisions, and we’re just about helping them make those faster.”

Jul
17
2019
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ContractPodAi scores $55M for its ‘AI-powered’ contract management software

ContractPodAi, a London-based startup that has developed what it describes as AI-powered contract lifecycle management software, is disclosing $55 million in Series B funding. The round is led by U.S.-based Insight Partners, with participation from earlier backer Eagle Investment.

Founded in 2012, ContractPodAi offers an “end-to-end” solution spanning the three main aspects of contract management: contract generation, contract repository and third-party review. Its AI offering, which uses IBM’s Watson, claims to streamline the contract management process and reduce the burden on corporate in-house legal teams.

“The legal profession has been historically behind the curve in technology adoption and our objective here is to support to digital transformation of legal departments via our contract management platform,” ContractPodAi co-founder and CEO Sarvarth Misra tells TechCrunch.

“Our business focuses on providing in-house counsel of corporations across the world with an easy to use, out of the box and scalable end to end contract management platform at a fixed fee SaaS licence model.”

With regards to ContractPodAi’s target customer, Misra says its solution is industry agnostic but is typically sold to large international businesses, including FTSE 500 and Fortune 2000 corporations. Customers include Bosch Siemens, Braskem, EDF Energy, Total Petroleum, Benjamin Moore and Freeview.

Armed with new capital, ContractPodAi says it plans to “significantly” scale up its product development, sales and customer success teams globally. The company already has offices in San Francisco, New York, Glasgow and Mumbai, in addition to its London HQ.

Adds Misra: “We believe the market for contract management solutions is fragmented with providers focusing one or two aspects of contract management functionality. ContractPodAi’s objective has been to provide one contract management ecosystem which covers all aspects of contract management functionality… This, along with our fixed, transparent pricing and ability to provide full implementation as part of the annual SaaS, differentiates us the from the rest of the providers.”

Jul
11
2019
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Swit, a collaboration suite that offers ‘freedom from integrations,’ raises $6 million in seed funding

A marketplace dominated by Slack and Microsoft Teams, along with a host of other smaller workplace communication apps, might seem to leave little room for a new entrant, but Swit wants to prove that wrong. The app combines messaging with a roster of productivity tools, like task management, calendars and Gantt charts, to give teams “freedom from integrations.” Originally founded in Seoul and now based in the San Francisco Bay Area, Swit announced today that it has raised a $6 million seed round led by Korea Investment Partners, with participation from Hyundai Venture Investment Corporation and Mirae Asset Venture Investment.

Along with an investment from Kakao Ventures last year, this brings Swit’s total seed funding to about $7 million. Swit’s desktop and mobile apps were released in March and since then more than 450 companies have adopted it, with 40,000 individual registered users. The startup was launched last year by CEO Josh Lee and Max Lim, who previously co-founded auction.co.kr, a Korean e-commerce site acquired by eBay in 2001.

While Slack, which recently went public, has become so synonymous with the space that “Slack me” is now part of workplace parlance at many companies, Lee says Swit isn’t playing catch-up. Instead, he believes Swit benefits from “last mover advantage,” solving the shortfalls of other workplace messaging, collaboration and productivity apps by integrating many of their functions into one hub.

“We know the market is heavily saturated with great unicorns, but many companies need multiple collaboration apps and there is nothing that seamlessly combines them, so users don’t have to go back and forth between two platforms,” Lee tells TechCrunch. Many employees rely on Slack or Microsoft Teams to chat with one another, on top of several project management apps, like Asana, Jira, Monday and Confluence, and email to communicate with people at other companies (Lee points to a M.io report that found most businesses use at least two messaging apps and four to seven collaboration tools).

Lee says he used Slack for more than five years and during that time, his teammates added integrations from Asana, Monday, GSuite and Office365, but were unsatisfied with how they worked.

“All we could do with the integrations was receive mostly text-based notifications and there were also too many overlapping features,” he says. “We realized that working with multiple environments reduced team productivity and increased communication overhead.” In very large organizations, teams or departments sometimes use different messaging and collaboration apps, creating yet more friction.

Swit’s goal is to cover all those needs in one app. It comes with integrated Kanban task management, calendars and Gantt charts, and at the end of this year about 20 to 30 bots and apps will be available in its marketplace. Swit’s pricing tier currently has free and standard tiers, with a premium tier for enterprise customers planned for fall. The premium version will have full integration with Office365 and GSuite, allowing users to drag-and-drop emails into panels or convert them into trackable tasks.

While being a late-mover gives Swit certain advantages, it also means it must convince users to switch from their current apps, which is always a challenge when it comes to attracting enterprise clients. But Lee is optimistic. After seeing a demo, he says 91% of potential users registered on Swit, with more than 75% continuing to use it every day. Many of them used Asana or Monday before, but switched to Swit because they wanted to more easily communicate with teammates while planning tasks. Some are also gradually transitioning over from Slack to Swit for all their messaging (Swit recently released a Slack migration tool that enables teams to move over channels, workspaces and attachments. Migration tools for Asana, Trello and Jira are also planned).

In addition to “freedom from integrations,” Lee says Swit’s competitive advantages include being developed from the start for small businesses as well as large enterprises that still frequently rely on email to communicate across different departments or locations. Another differentiator is that all of Swit’s functions work on both desktop and mobile, which not all integrations in other collaboration apps can.

“That means if people integrate multiple apps into a desktop app or web browser, they might not be able to use them on mobile. So if they are looking for data, they have to search app by app, channel by channel, product by product, so data and information is scattered everywhere, hair on fire,” Lee says. “We provide one centralized command center for team collaboration without losing context and that is one of our biggest sources of customer satisfaction.”

Jul
11
2019
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OneTrust raises $200M at a $1.3B valuation to help organizations navigate online privacy rules

GDPR, and the newer California Consumer Privacy Act, have given a legal bite to ongoing developments in online privacy and data protection: it’s always good practice for companies with an online presence to take measures to safeguard people’s data, but now failing to do so can land them in some serious hot water.

Now — to underscore the urgency and demand in the market — one of the bigger companies helping organizations navigate those rules is announcing a huge round of funding. OneTrust, which builds tools to help companies navigate data protection and privacy policies both internally and with its customers, has raised $200 million in a Series A led by Insight that values the company at $1.3 billion.

It’s an outsized round for a Series A, being made at an equally outsized valuation — especially considering that the company is only three years old — but that’s because of the wide-ranging nature of the issue, according to CEO Kabir Barday, and OneTrust’s early moves and subsequent pole position in tackling it.

“We’re talking about an operational overhaul in a company’s practices,” Barday said in an interview. “That requires the right technology and reach to be able to deliver that at a low cost.” Notably, he said that OneTrust wasn’t actually in search of funding — it’s already generating revenue and could have grown off its own balance sheet — although he noted that having the capitalization and backing sends a signal to the market and in particular to larger organizations of its stability and staying power.

Currently, OneTrust has around 3,000 customers across 100 countries (and 1,000 employees), and the plan will be to continue to expand its reach geographically and to more businesses. Funding will also go toward the company’s technology: it already has 50 patents filed and another 50 applications in progress, securing its own IP in the area of privacy protection.

OneTrust offers technology and services covering three different aspects of data protection and privacy management.

Its Privacy Management Software helps an organization manage how it collects data, and it generates compliance reports in line with how a site is working relative to different jurisdictions. Then there is the famous (or infamous) service that lets internet users set their preferences for how they want their data to be handled on different sites. The third is a larger database and risk management platform that assesses how various third-party services (for example advertising providers) work on a site and where they might pose data protection risks.

These are all provided either as a cloud-based software as a service, or an on-premises solution, depending on the customer in question.

The startup also has an interesting backstory that sheds some light on how it was founded and how it identified the gap in the market relatively early.

Alan Dabbiere, who is the co-chairman of OneTrust, had been the chairman of Airwatch — the mobile device management company acquired by VMware in 2014 (Airwatch’s CEO and founder, John Marshall, is OneTrust’s other co-chairman). In an interview, he told me that it was when they were at Airwatch — where Barday had worked across consulting, integration, engineering and product management — that they began to see just how a smartphone “could be a quagmire of privacy issues.”

“We could capture apps that an employee was using so that we could show them to IT to mitigate security risks,” he said, “but that actually presented a big privacy issue. If [the employee] has dyslexia [and uses a special app for it] or if the employee used a dating app, you’ve now shown things to IT that you shouldn’t have.”

He admitted that in the first version of the software, “we weren’t even thinking about whether that was inappropriate, but then we quickly realised that we needed to be thinking about privacy.”

Dabbiere said that it was Barday who first brought that sensibility to light, and “that is something that we have evolved from.” After that, and after the VMware sale, it seemed a no-brainer that he and Marshall would come on to help the new startup grow.

Airwatch made a relatively quick exit, I pointed out. His response: the plan is to stay the course at OneTrust, with a lot more room for expansion in this market. He describes the issues of data protection and privacy as “death by 1,000 cuts.” I guess when you think about it from an enterprising point of view, that essentially presents 1,000 business opportunities.

Indeed, there is obvious growth potential to expand not just its funnel of customers, but to add more services, such as proactive detection of malware that might leak customers’ data (which calls to mind the recently fined breach at British Airways), as well as tools to help stop that once identified.

While there are a million other companies also looking to fix those problems today, what’s interesting is the point from which OneTrust is starting: by providing tools to organizations simply to help them operate in the current regulatory climate as good citizens of the online world.

This is what caught Insight’s eye with this investment.

“OneTrust has truly established themselves as leaders in this space in a very short time frame, and are quickly becoming for privacy professionals what Salesforce became for salespeople,” said Richard Wells of Insight. “They offer such a vast range of modules and tools to help customers keep their businesses compliant with varying regulatory laws, and the tailwinds around GDPR and the upcoming CCPA make this an opportune time for growth. Their leadership team is unparalleled in their ambition and has proven their ability to convert those ambitions into reality.”

Wells added that while this is a big round for a Series A it’s because it is something of an outlier — not a mark of how Series A rounds will go soon.

“Investors will always be interested in and keen to partner with companies that are providing real solutions, are already established and are led by a strong group of entrepreneurs,” he said in an interview. “This is a company that has the expertise to help solve for what could be one of the greatest challenges of the next decade. That’s the company investors want to partner with and grow, regardless of fund timing.”

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