Drata, a security compliance automation platform that helps corporations adhere to frameworks resembling SOC 2 and GDPR, has acquired software program security overview startup SafeBase for $250 million.
SafeBase co-founders Al Yang (CEO) and Adar Arnon (CTO) will retain their roles, and SafeBase will proceed to supply a standalone product whereas bringing its core options to Drata’s platform.
“This partnership isn’t nearly combining complementary merchandise,” Yang wrote in a put up on SafeBase’s official weblog Tuesday. “It’s a union of two customer-obsessed corporations with aligned missions and cultures, centered on delivering the instruments enterprises have to succeed.”
Yang and Arnon based SafeBase in 2020 after assembly at Harvard Enterprise College. Incubated by Y Combinator, the corporate helps clients fill out security questionnaires — the opinions that organizations usually kick off earlier than buying a brand new piece of software program.
SafeBase employs AI fashions particularly educated on security documentation use instances to learn, interpret security info and questions, after which robotically reply to security questionnaires. Past the customized fashions, SafeBase supplies an engine that enables an organization to assign rules-based conduct for buyer entry, in addition to dashboards that present insights and analytics on the corporate’s security posture.
SafeBase, which is headquartered in San Francisco, managed to lift $53.1 million in enterprise capital from buyers together with Zoom Ventures, NEA, and Comcast Ventures previous to its exit. In line with Yang, SafeBase has over 1,000 clients as we speak, together with LinkedIn, Palantir, and CrowdStrike.
As Drata co-founder and CEO Adam Markowitz famous in a put up on Tuesday, Drata’s acquisition of SafeBase comes because the demand for so-called belief administration options rises. Cloud apps and AI have elevated organizations’ reliance on third events which have entry to delicate knowledge. On the similar time, new laws just like the Digital Operational Resilience Act within the EU are imposing new security necessities on distributors.
With SafeBase, Markowitz goals to create a “seamless ecosystem” of belief, governance, threat, and compliance choices.
“Along with SafeBase, we’re extra dedicated than ever to empowering our clients to construct and scale belief, unlock development, and obtain success,” Markowitz stated within the weblog. “Simply in time for Drata’s fourth anniversary, this milestone marks the beginning of an thrilling new chapter.”
Based in 2020, Drata has grown quickly over time, securing properly over $300 million in funding and buying over 7,000 clients together with Notion and Tenable. It counts Iconiq Progress and Salesforce Ventures amongst its backers, along with Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner.
Final yr, Drata’s income grew 100% year-over-year, and the San Diego-based firm stated that it was including 650 new clients every quarter. Drata additionally made its first acquisitions, snapping up governance and automation agency Harmonize.io in April and cloud security platform Oak9 in Could.
A PR rep for Drata informed information.killnetswitch by way of e mail that Drata is nearing $100 million in annual recurring income.
However the aggressive development technique hasn’t persistently paid off. Final September, Drata laid off round 40 individuals, or 9% of its workforce. On the time, the corporate alluded to “sustainable development”; Drata’s headcount grew a whopping 52% from 2023 to final yr.
