Blotout Raises $3M Seed Funding - Privacy-Focused CDP

Navigating the Complexities of Data Privacy Regulations

With the increasing prevalence of privacy regulations such as GDPR and CCPA, organizations are actively seeking solutions to enhance customer understanding while simultaneously streamlining compliance efforts.

Blotout, a startup that participated in the Y Combinator Winter 2021 program, recently secured $3 million in seed funding to address this challenge. The company has developed a customer data platform (CDP) specifically designed with data privacy as a core principle.

Securing Seed Funding and Investor Confidence

This funding round was spearheaded by First Rays Venture Partners, with additional participation from Y Combinator, Pascal Capital, Launchpad Capital, and Sung Ho Choi, the co-founder of FuboTV.

According to Mandar Shinde, founder and CEO of Blotout, comprehensive access to customer data is crucial for both improved customer insights and adherence to evolving privacy laws. He emphasizes that many existing tools fall short in capturing essential data, a gap that Blotout is designed to fill.

“Our platform distinguishes itself by enabling privacy measures during the data collection phase, integrating the entire privacy stack directly into the collection process,” Shinde stated. “This ensures consent and compliance are built into your infrastructure from the outset.”

How Blotout Facilitates Data Privacy

The solution allows for deployment on various cloud platforms, including Amazon, Microsoft, and Google. Data is captured as it enters the system, with Blotout managing permissions and ensuring compliance with relevant regulations, all while granting customers complete data control.

Alok Nandan, a partner at First Rays Ventures, highlighted Blotout’s innovative approach to building a new compliance solution from the ground up, leveraging a CDP as its foundation, as a key factor in the firm’s investment decision.

“While many discuss the importance of first-party data, effectively utilizing it requires constructing a complete martech stack. Many organizations are employing temporary fixes, but a clean-slate approach, as implemented by Blotout, is the optimal path,” Nandan explained.

Team Growth and Global Reach

Currently, Blotout employs 30 individuals distributed across the Bay Area, India, and Europe. Matthew Boulos, the COO, noted that the team is expanding rapidly due to the product’s ambitious scope and the need for skilled data engineering professionals.

Boulos acknowledged the challenges of building a diverse team in the current hiring landscape, but emphasized that the company’s global presence aids in attracting a wider range of talent.

“We are continually learning how to not only attract diverse talent but also to foster an inclusive environment where individuals can be authentic and thrive without needing to conform to artificial standards,” he said.

The Impact of Y Combinator

The company’s participation in the Y Combinator program last winter proved beneficial, providing a boost to their financing prospects and, as evidenced by today’s announcement, yielding positive results.

Despite possessing prior industry experience, the founders believed Y Combinator would provide a competitive advantage in securing funding, a prediction that has been validated.