Compliance startup Vanta raises $150M in funding led by Sequoia Capital at $2.45 Billion valuation

Online security and compliance management platform Vanta announced on Wednesday it has secured $150 million in a Series C funding round, boosting the company’s valuation to $2.45 billion. This latest infusion of capital comes two years after its previous round.

Leading the round was Sequoia Capital, with 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 also participating. With this latest round, Vanta’s total funds raised since 2021 now stands at $353 million.

The San Francisco-based company plans to leverage the fresh funds to accelerate its enterprise expansion and push forward its artificial intelligence initiatives. As AI adoption continues to surge, U.S. venture capital firms are keen to invest in companies leading this transformation, especially following a two-year slowdown caused by high interest rates and a sluggish exit market for startup investors.

Vanta aims to double down on AI innovation, eliminate outdated compliance tools, and enhance its global footprint by expanding into the UK and Australia. The startup is also set to bolster its upmarket momentum by replacing cumbersome, manual governance, risk, and compliance (GRC) solutions, thus deepening its global presence and accelerating AI product development.

In 2021, Vanta raised $50 million in a round led by Sequoia Capital, which continued its support in the 2022 fundraise of $110 million, achieving a valuation of $1.6 billion.

“We’re investing in Vanta because of their demonstrated platform approach, starting with automated compliance and rapidly adding new modules,” said Mike Reilly, Growth Equity Investor at Goldman Sachs Alternatives. “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.”

Vanta’s client base has grown to over 8,000 customers, including notable names such as Microsoft-owned GitHub, hiring platform SmartRecruiters, and database company ZoomInfo.

Founded in 2018 by CEO Christina Cacioppo, Vanta assists clients in security monitoring and achieving compliance certifications at an accelerated pace through process automation. The company serves customers in 58 countries with offices in Dublin, New York, San Francisco, and Sydney.