Mere months after closing a $200 million Series A funding round led by Insight Partners, Atlanta-based data privacy management startup unicorn OneTrust has announced a $210 million Series B funding round, once again led by Insight Partners, along with Coatue Management LLC.
This new funding round more than doubles OneTrust’s valuation, which is now $2.7 billion, and brings total investment in OneTrust to $410 million. The previously bootstrapped company’s CEO says the funding will help OneTrust maintain its rapid growth due to constant change in privacy laws worldwide.
“OneTrust plans to use the combined funding to continue to invest in meeting the widespread demand for our technology platform,” OneTrust’s Kabir Barday said in a statement. “We will scale our services, support, and partner ecosystem globally and add new capabilities to the platform through both organic and inorganic innovation.”
OneTrust helps companies stay compliant with privacy and security laws like the European Union’s ePrivacy, General Data Protection Regulation (GDPR), and others in the U.S., like the California Consumer Privacy Act (CCPA), which mandates that companies implement changes to secure privacy rights of state residents.
OneTrust also handles third-party risk management for its clients’ vendors. The company employs a self-assessment tool that generates reports about a client’s current data collection process, which includes how data flows through the that client’s organization, and where to find and fix any compliance gaps that may arise.
In an interview with Crunchbase News, OneTrust chairman Alan Dabbiere touted the company’s ability to grow and exceed investors’ goals.
“When a VC invests in a company, they have certain growth expectations built into the number they give you,” Dabbiere said. “In the last seven months, our valuation went from $1.3 billion to $2.7 billion. That tells you that we knocked it out of the park even relative to some lofty expectations. We had a really fantastic back half of the year.”
OneTrust has spurred its rapid growth by acquiring four companies in three years. The company acquired a trio of London-based companies: app developer Governor Technology and privacy software firm Optanon in 2016, then privacy and security regulatory research platform Data Guidance in March 2019. The company also acquired private e-learning company Privacy Core this past November.
In OneTrust’s four-year existence, the company has grown to include 1,500 employees in 10 offices around the world and has had some 75 patents issued by the U.S. Patent and Trademark Office (USPTO). However, investors believe that the company’s growth could only increase from here.
“Our continued investment in OneTrust represents the value that businesses are placing on having the right tools to implement cost-effective and efficient privacy programs at scale,” Insight Partners managing director Richard Wells said in a statement. “With CCPA now in effect and other privacy laws to follow suit, we are thrilled to continue our partnership with OneTrust.”
OneTrust now has more than 5,000 customers in 100 different countries – a client list that includes almost half of the Fortune 500.
“Kabir and his team have achieved a meteoric adoption of the OneTrust technology platform around the world and are leaders in the privacy technology space,” Thomas Laffont, co-founder of Coatue, said in a statement. “We look forward to working with the talented OneTrust team to drive scale, further enhance their platform offerings, and capture the immense opportunities that continued regulatory adoption will create.”