Vanta, a security compliance automation startup, has announced that it has raised $40 million in an extension of its Series B funding round that closed in June. The new investment brings the company’s total capital raised to $203 million, valuing Vanta at $1.6 billion.
Investors and Future Plans
The extension of the Series B funding round was led by CrowdStrike, a cybersecurity firm that specializes in endpoint detection and response. Several individual investors also participated in the funding round. CEO Christina Cacioppo told TechCrunch that the new cash will be used to support Vanta’s customer acquisition, product R&D, and go-to-market efforts.
Founding Story and Mission
Cacioppo founded Vanta in 2016 with a mission to help companies achieve and maintain a strong security posture. Before starting Vanta, Cacioppo was a professor at the School of Visual Arts in New York. She also co-founded Nebula Labs, a software development house, and worked as a product manager at Dropbox.
The Growing Need for Security Compliance
Cacioppo believes that massive breaches on the rise are forcing companies to prioritize security compliance. "Companies won’t buy a product that is not secure, and regulators will crack down on any company with a weak security posture," she explained. However, emerging companies lack the resources and expertise in-house to properly secure their perimeter, leaving them open to incoming threats and penalties for non-compliance.
Vanta’s Solution
Vanta’s solution automates the process of achieving and maintaining compliance by streamlining security and regulatory requirements into a single platform. The company offers a range of tools and services designed to help companies manage security risks, including vulnerability management, incident response, and threat intelligence.
CrowdStrike’s Investment in Vanta
In an emailed statement, CrowdStrike CTO Michael Sentonas said: "Compliance is no longer a siloed function – it’s a boardroom priority and an essential component of the modern security stack. We invested in Vanta because they created a way for every company, large and small, to achieve and maintain compliance by automating the process end-to-end."
Market Trends
The investment in Vanta comes at a time when funding for startups is on the rise. According to Crunchbase data cited by The Wall Street Journal, funding for startups reached nearly $1 billion in the first 10 weeks of 2022 alone. This surge in funding is driven by international sanctions and data privacy legislation like the California Consumer Privacy Act.
Conclusion
Vanta’s latest funding round is a testament to the growing demand for security compliance solutions. With its automated platform, Vanta is well-positioned to capitalize on this trend and help companies achieve and maintain a strong security posture.
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