Vanta raises $150 million to accelerate its AI product innovation

Vanta announced that it has raised a $150 million Series C funding round at a valuation of $2.45 billion.

The round was led by Sequoia Capital, in addition to new investors Growth Equity at Goldman Sachs Alternatives, J.P. Morgan and existing investors Atlassian Ventures, Craft Ventures, CrowdStrike Ventures, HubSpot Ventures, Workday Ventures and Y Combinator. The most recent funding brings Vanta’s total funds raised to $353 million since 2021.

Vanta intends to use the funding to increase its upmarket momentum by replacing cumbersome, manual GRC solutions; deepen its global presence; and accelerate its AI product innovation.

“Under Christina’s leadership, Vanta has grown into a special and enduring company,” said Andrew Reed, Partner, Sequoia Capital. “Now the clear market leader in trust management, Vanta has accelerated upmarket, launched innovative AI features, and delighted many thousands of customers along the way. Sequoia led Vanta’s Series A more than three years ago, and we are equally excited to lead Vanta’s Series C today. We look forward to helping them build a legendary security and compliance company for many years ahead.”

In January 2024, Vanta announced it surpassed $100M in ARR in FY ‘24, ending January 31, 2024. In addition to reaching the milestone within 5 years of entering the market, Vanta nearly doubled its global customer base this past year, including growing its international customers 90% YoY.

“From pioneering automated compliance to becoming the market leader in trust management, Vanta has enabled thousands of customers to strengthen their security practices, and ultimately, grow their businesses,” said Christina Cacioppo, CEO, Vanta.

“We’re honored to have industry-leading investment firm Sequoia triple down on Vanta. Their repeated investments in and support for Vanta is a testament to the power of trust management to displace manual processes and antiquated GRC tools. Alongside our customers, Vanta is pioneering a future of security that’s moving the market from point-in-time certifications to real time trust,” added Cacioppo.

Today, over 8,000 companies, including leading enterprises Atlassian, Omni Hotels, Quora and ZoomInfo, rely on Vanta as their trust management platform to build, maintain and demonstrate trust. With Vanta:

• SmartRecruiters saves 20 hours per week across their pre-sales team with a streamlined security review process
• ZoomInfo’s Trust Center satisfies 90% of their inbound security requests by automating 8-10 security reviews a day

“Compliance is a critical component of the modern security stack for businesses of all sizes, but especially large enterprises with complex security and regulatory requirements, such as Goldman Sachs,” said Mike Reilly, Investor, Growth Equity at Goldman Sachs Alternatives.

“We’re investing in Vanta because of their demonstrated platform approach, starting with automated compliance and rapidly adding new modules such as Trust Centers and Vendor Risk Management. Their proven ability to strategically execute and adapt quickly as a next-generation compliance leader is both undeniable and increasingly important as the landscape of potential risk vectors accelerates,” concluded Reilly.

Over the past year, Vanta has delivered accelerated product, customer and organizational growth as it continues to increase its market leadership including:

• Launching over 260 new product features, including Vanta AI-powered Questionnaire Automation and Trust Centers, used by thousands of customers
• Establishing the world’s largest network of Trust Centers, an enterprise’s first line of defense to proactively demonstrate their security and compliance posture to prospects and customers
• Building for the enterprise with an enhanced REST API, support for SCIM provisioning and more multi-instance integrations to support companies
• Supporting growing companies pursuing compliance quickly with a new navigation, policy builder, in-app background checks and redesigned tests
• Growing to 500 employees throughout the company’s regions of focus including North America, U.K., Germany and Australia

“Trust is the bedrock of the relationship between Atlassian customers and our third-party Marketplace Partners,” said Phil Grove, Group Product Manager – Ecosystem, Atlassian. “Our partnership with Vanta enables app vendors to cement credibility by achieving certifications that strengthen their security posture and ensure compliance with regional and industrial regulations. With the help of Vanta and Atlassian, Marketplace Partners can expedite critical security and compliance assessments to accelerate cloud migrations, maintain trust, and do what matters most for customers.”