Drata Doubles Valuation To $2B After $200M Series C

Fundraising isn’t what it was last year, but don’t tell that to cybersecurity startup Drata.

The San Diego-based company locked up a $200 million Series C co-led by ICONIQ Growth and GGV Capital at a $2 billion valuation. The round doubles Drata’s valuation from its $100 million Series B in November 2021.

Drata’s automation platform helps companies with security compliance, making sure they are in line with regulations such as GDPR. Keeping up to date with compliance rules and regulations also can help build trust in a company’s customer base, making it easier to retain clients.

“Since our inception, Drata has been designed to bridge the gap between compliance and trust through automation, and we’ve made significant progress in less than two years,” said co-founder and CEO Adam Markowitz in a release.

Going fast

The latest round keeps up with Drata’s quick pace of fundraising. The company raised a seed round in January 2021, then its Series A in June 2021. That was followed by being minted a unicorn with its Series B in November of that year.

According to Crunchbase, Drata has now raised more than $328 million in less than two years.

Those numbers are not entirely surprising. The governance, risk and compliance sector in cyber has long garnered interest from investors as more regulations flood sectors such as finance and health care.

IDC projects the GRC market to reach $15 billion in the next three years, making it a possible lucrative sector for tech startups offering solutions.

Overall, funding to cyber startups will not hit the highs of last year — which is not surprising as 2021 was an outlier in VC funding. Last year set a record for the sector, with more than $23 billion raised by VC-backed startups in network, cloud and cybersecurity, per Crunchbase data. While this year will only see around $16 billion, that is still nearly double from 2020.

Illustration: Dom Guzman

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