Vanta Raises $50 Million in Series A Funding Led by Sequoia
May 2021 by Marc Jacob
Vanta announced that it has closed $50 million in Series A funding. The new funding round was led by Sequoia Capital, along with participation from existing investor Y Combinator. Sequoia General Partner Andrew Reed will join Vanta’s board of directors. The company will use the new funding to meet customer demand, launch new products, and open a second office in New York.
Obtaining SOC 2 compliance—an industry security and data protection auditing procedure—can take a company many months of repetitive work. Vanta allows companies to prepare for SOC 2 audits in a matter of days, with an automated continuous monitoring platform that connects to services including Google Cloud Platform, Amazon Web Services, GitHub, Okta, and Slack. Conventional methods of preparing for a compliance audit are manual, laborious, and error–prone. Vanta helps startups become secure and prove their security to customers, leveling the internet’s playing field and allowing startups to compete with larger companies on their merits.
Vanta has seen tremendous growth since coming to market in 2018. In two and a half years, the company has surpassed $10 million in annual recurring revenue through word-of-mouth growth and continues to double its customer base every six months, all without an official launch.
As the SaaS market expanded to more than $150 billion in 2020, the risks and costs associated with security breaches have similarly expanded. In 2020, in the United States alone, more than 150 million people were affected by data breaches. Nearly 1,000 market-leading companies, including Clubhouse, Lattice, Calm, Loom, Notion, and UserTesting, trust Vanta to power their security and compliance.
As part of Vanta’s mission to secure the internet and protect consumer data, the company announced two new compliance certifications available in invite–only beta today:
HIPAA - Any U.S.-based internet business that handles personal health information (PHI) must safeguard patient data per the Health Insurance Portability and Accountability Act (HIPAA). Vanta provides an array of security monitoring tools that prove compliance with HIPAA.
ISO 27001 - ISO 27001 is a common data safety and information security certification for businesses with global customers. For internationally-focused businesses, Vanta supplies a comprehensive suite of security and privacy tools that secure the business and prove compliance with ISO 27001.
The company plans to nearly double headcount to 100 full time employees by the end of the year