OneTrust, the 4 year old privacy platform startup from the people who brought you AirWatch (which VMWare acquired for $ 1.5 billion in 2014), today has a Series C valued at $ 300 million with an impressive valuation of $ 5.1 billion announced.
The company has drawn significant investor attention in a remarkably short time. It shipped with a Series A valued at $ 200 million on a valuation of $ 1.3 billion in July 2019. These aren't your typical A-Round numbers, but this has never been a typical startup. Series B was similar – $ 210 million on a valuation of $ 2.7 billion last February.
That brings us to today's Series C. Consider that the company nearly doubled its valuation again, raising $ 710 million in just 18 months, some of it during a pandemic. TCV led today's round at the existing investors Insight Partners and Coatue.
So what are they doing to attract all this money? In a world where data protection laws such as the GDPR apply and CCPA are already playing with others in the works in the US and around the world. Businesses need to make sure they comply with local laws wherever they operate. This is where OneTrust comes in come inside.
"We help companies ensure that they can be trusted and that they comply with all data protection, trust and risk laws," said Alan Dabbiere, chairman of OneTrust.
This includes a number of products that the company has already developed or purchased that very quickly offer a data protection platform that covers all aspects of a customer's data protection needs, including data protection management, investigation, third party risk assessment, risk management, ethics and compliance and consent management.
The company has already won 7,500 customers for the platform – and is adding 1,000 additional customers every quarter. According to Dabbiere, the products help ensure they are compliant without affecting the building or buying process. "The goal is not to slow down the process, but to speed it up. And there is a new philosophy called 'Privacy by Design", "he said. This means that data protection transparency is built into products and at the same time it is ensured that they comply with all legal and regulatory requirements.
The startup wasn't shy about using its investments to buy parts of the platform, having made five acquisitions in just four years since its inception. The company already employs 1,500 people and plans to hire another 900 people by 2021.
According to Dabbiere, building a workforce in a very diverse city like Atlanta has helped build a diverse group of employees. "By finding the best people and doing it in an area like Atlanta, we are realizing that diversity goes without saying," he said, adding, "We are thoughtful about it." CEO Kabir Barday also launched an internal Diversity, Justice and Inclusion Council last summer to respond to the Black Lives Matter movement in the Atlanta community and across the country.
OneTrust had relied heavily on trade shows before the pandemic. In fact, Dabbiere says they visited up to 700 a year. When that street closed due to the pandemic, they initially lowered their sales forecast. However, when they switched to digital channels along with their clients, they found that revenue was not declining as expected.
He says OneTrust has money in the bank from his previous investments, but they had reasons to raise more cash now anyway. “The main reason for this was the currency of our share. We had to reassess it for people, acquisitions and the next steps in our growth, ”he said.