OneTrust, a privacy platform company established four years ago by the team behind AirWatch (acquired by VMware in 2014 for $1.5 billion), today revealed a $300 million Series C funding round, resulting in an impressive $5.1 billion valuation.

The company has rapidly gained significant investor interest in a short timeframe. It initially secured $200 million in Series A funding at a $1.3 billion valuation in July 2019. These figures are atypical for a Series A round, reflecting the unique trajectory of this startup. The subsequent Series B round followed a similar pattern – $210 million raised at a $2.7 billion valuation earlier this year.

This leads to the current Series C announcement. Notably, the company has nearly doubled its valuation once more and has accumulated $710 million in funding within just 18 months, including investment during the pandemic. TCV spearheaded today’s funding, alongside existing investors Insight Partners and Coatue.

What is driving this substantial influx of capital? With privacy regulations such as GDPR and CCPA already implemented, and further legislation being developed in the U.S. and globally, organizations must ensure adherence to local regulations in all operating regions. OneTrust provides the solutions to achieve this.

“We empower businesses to establish trust and maintain compliance with all privacy, trust, and risk-related laws,” explained OneTrust Chairman Alan Dabbiere.

This is accomplished through a comprehensive suite of products, developed both internally and through acquisitions, designed to address all facets of a customer’s privacy needs. These include privacy management, data discovery, third-party risk assessment, overall risk management, ethics and compliance programs, and consent management.

Currently, the platform serves 7,500 customers, with an additional 1,000 customers joining each quarter. Dabbiere emphasizes that the products facilitate compliance without hindering operational efficiency. “Our aim is to accelerate processes, not impede them, aligning with the emerging ‘privacy by design’ philosophy,” he stated. This approach involves integrating privacy considerations directly into product development while ensuring full legal and regulatory compliance.

The company has proactively expanded its capabilities through acquisitions, completing four purchases in its four years of operation. With a current workforce of 1,500 employees, OneTrust intends to add approximately 900 more personnel in 2021.

Dabbiere highlights that the company’s location in the diverse city of Atlanta has been instrumental in fostering a diverse employee base. “Atlanta allows us to attract top talent, and naturally supports our diversity goals,” he said, adding, “We prioritize this aspect.” CEO Kabir Barday also established a diversity, equity, and inclusion council internally this past summer in response to the Black Lives Matter movement within the Atlanta community and nationwide.

Prior to the pandemic, OneTrust heavily relied on industry trade shows, attending as many as 700 annually. When these events were canceled, the company initially adjusted its revenue projections. However, transitioning to digital channels alongside its customers resulted in a less significant revenue decline than anticipated.

Dabbiere clarified that while OneTrust had sufficient funds from previous investments, there were specific reasons for seeking additional capital. “A primary motivation was to revalue our stock, which is essential for employee compensation, acquisitions, and supporting our continued growth,” he explained.