Vanta Raises $150 Million to Expand Automated Security and Compliance Platform, Now Valued at $2.45 Billion

Vanta Raises $150 Million to Expand Automated Security and Compliance Platform, Now Valued at $2.45 Billion
Image credit: Vanta

Vanta, a trust management platform that automates security and compliance processes for businesses, has raised $150 million in a Series C funding round led by Sequoia Capital, bringing its valuation to $2.45 billion from $1.6 billion in 2022. This round also included new investors Growth Equity at Goldman Sachs Alternatives and J.P. Morgan, along with existing backers like Atlassian Ventures, Craft Ventures, CrowdStrike Ventures, HubSpot Ventures, Workday Ventures, and Y Combinator. Since its inception in 2018, Vanta has raised a total of $354 million.

Initially, Vanta focused on helping businesses secure certifications such as ISO 27001, HIPAA, and SOC 2. Now, it aims to be a broader part of discussions around trust in the B2B software space. Co-founder and CEO Christina Cacioppo explained that Vanta's mission is evolving from automated compliance to helping companies build comprehensive security programs and gain recognition for their efforts. This includes real-time security status pages, trust centers, and questionnaire automation, all designed to demonstrate a company's commitment to security.

A significant part of Vanta's strategy involves building its own security tools. While not intending to compete directly with companies like CrowdStrike, Vanta aims to ensure that companies can substantiate claims about data access and security. This involves creating integrations with existing security tools, with Vanta having developed around 200 in-house integrations and another 100 built by other companies.

AI plays a crucial role in Vanta's future plans. Last year, the company launched its first AI products, including a questionnaire automation service to streamline the security review process for onboarding new vendors. This service has shown promising results, with 80% of automated responses being accepted by human reviewers with minimal adjustments needed for the remaining 20%.

With the new funding, Vanta plans to expand its AI offerings, increase its global footprint, and move further upmarket from its startup origins. The company, which now has over 8,000 customers, intends to enhance its presence in regions like North America, the U.K., Germany, and Australia. Currently, Vanta employs 500 people and continues to focus on growth outside the U.S., with a quarter of its customer base now international.

Vanta’s growth has been impressive, with the company surpassing $100 million in annual recurring revenue (ARR) in its financial year ending in January. High-profile clients like Omni Hotels use Vanta not just for compliance but to ensure the security of customer data stored in third-party tools, illustrating the platform’s broad applicability and trust-centric approach.

Overall, Vanta's trajectory showcases its ambition to become a critical player in the security and compliance sector, leveraging both advanced technology and strategic investments to enhance its offerings and market reach.