Skyflow Raises $45M Series B to Revolutionize Data Privacy
Corporate Data Privacy Market Gains Momentum
The market for products focused on corporate data privacy is experiencing significant growth. This is evidenced by Skyflow’s recent announcement of a $45 million Series B funding round, following closely after TripleBlind’s $24 million raise.
Skyflow's API-Delivered Data Storage
Skyflow, a company previously covered by TechCrunch since its seed financing in early 2020, provides a service delivered via API. This service is designed for the secure storage of personally identifiable information (PII) and other sensitive data belonging to its customers.
The company broadened its offerings following its $17.5 million Series A closure in late 2020. It now includes a specialized service tailored for fintech companies, facilitating the secure storage of credit card details and other financial data. Solutions are also available for organizations within the healthcare sector.
Series B Funding Details
Insight Partners spearheaded the latest funding round, with participation from Santander’s venture arm. To date, Skyflow has secured a total of $70 million in funding, as stated in a company release.
Simplifying Data Privacy with APIs
Like many companies utilizing an API-driven model, Skyflow aims to transform a complex challenge into a straightforward solution for developers. Essentially, Skyflow intends to manage the intricacies of data privacy, encryption, and storage of PII and other potentially sensitive data on behalf of its clients. The company employs a zero-trust vault constructed with polymorphic encryption for enhanced security.
Global Data Residency and Regulatory Compliance
In a recent interview with TechCrunch, Skyflow’s co-founder and CEO, Anshu Sharma, highlighted the company’s commitment to accommodating data residency requirements and navigating related regulations. This ensures that organizations worldwide can utilize their services without facing legal repercussions from governmental bodies.
Growth and Future Expansion
The company reports experiencing an “8x growth” in the past nine months. Specific details regarding the initial baseline and the resulting revenue run rate were not disclosed. This Series B funding represents a critical juncture where more detailed metrics will be expected from Skyflow in future funding discussions.
Currently, Skyflow employs approximately 65 individuals and plans to expand its workforce to around 130 by the close of 2022.
Strategic Fundraising
Skyflow did not require immediate new funding when securing its Series B. Having recently completed its previous round, the company still held around $11 million in capital, according to Sharma. This suggests the company raised funds from a position of strength, potentially granting them favorable terms during negotiations.
Valuation Estimates
While the company has not publicly disclosed its valuation, the $45 million raise suggests a valuation comfortably exceeding nine figures. Estimates, based on PitchBook data indicating a pre-round valuation of under $100 million, place the current valuation between $300 million and $500 million.
The Growing Importance of Data Privacy
Data privacy is a critical and expanding concern. Skyflow and TripleBlind are among the companies addressing this challenge, both offering products geared towards the healthcare industry. With its recent funding, Skyflow is well-positioned to demonstrate the effectiveness of its product and avoid potential acquisition by a larger technology firm.
Data Growth and Security Demands
Organizations are consistently accumulating more data. This trend, exemplified by Databricks’ rapid growth, directly correlates with increased risk and, consequently, greater demand for privacy-focused software. Companies specializing in data storage and security solutions are therefore benefiting from a favorable market dynamic.
