Compliance and security automation startup Drata reaches unicorn status after $100M funding round
Less than 10 months after emerging from stealth, San Diego-based compliance and security automation startup Drata joins the coveted unicorn club after raising $100 million in Series B funding. The round, which was led by ICONIQ Growth, makes Drata one of the fastest SaaS companies ever to reach a $1B valuation.
Other backers in this round include Alkeon Capital and Salesforce Ventures. Existing investors GGV Capital, Cowboy Ventures, and Leaders Fund also participated in this round. Since its public launch less than 10 months ago, Drata has achieved major milestones, including securing its first 100 customers in 45 days, now on track to reach thousands in 2022. The company has also grown its revenue by 69% month-over-month since January.
“We believe Drata’s growth in just 10 months has been nothing short of incredible, and this traction made us strong believers of the team’s exceptional product innovation and category leadership,” said Will Griffith, founding partner at ICONIQ Growth. “We are inspired by companies that truly have the power to drive change, and we believe Drata’s automation-led platform has the power to do that through its unique strategic value combined with deep customer love and ability to execute.”
Drata was founded in mid-2020 2020 by Adam Markowitz, Daniel Marashlian, and Troy Markowitz. The one-year-old startup helps companies streamline their SOC 2 compliance through continuous, automated control monitoring and evidence collection, resulting in lower costs and time spent preparing for annual audits. Drata currently has a team of 70 full-time employees, with plans to triple in size in the next year.
In conjunction with the funding, Drata also said it’s preparing to launch two additional frameworks, HIPAA and PCI DSS, expanding on its current offering of ISO 27001 and SOC 2. The company will continue to innovate with new features that further streamline compliance and monitor security posture for companies operating in the cloud.
“This latest round of funding is still only the beginning, and with it we’re confident in our ability to accelerate Drata’s growth and leadership position in the market,” said Drata CEO and Co-Founder Adam Markowitz. “Trust is at the core of what we do, and we’re deeply grateful for our trusted customers, investors, and partners who are helping Drata continue to push the bar in delivering its world-class product experience. We look forward to what’s ahead as we rapidly grow our team and expand product offerings.”
This unprecedented growth is driven by demand for its best-in-class product coupled with the growing importance of security, compliance, and trust among cloud-based companies. Adherence to compliance frameworks, such as SOC 2 and ISO 27001, has increasingly become necessary to do business but can be resource-intensive to achieve. Drata’s software is used by hundreds of companies, including Notion, FullStory, Amplitude, and Abnormal Security.