Drata, a safety compliance automation platform that helps firms adhere to frameworks resembling SOC 2 and GDPR, has acquired software program safety evaluation 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 firms with aligned missions and cultures, targeted 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 prospects fill out safety 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 safety documentation use circumstances to learn, interpret safety info and questions, after which robotically reply to safety questionnaires. Past the customized fashions, SafeBase supplies an engine that permits an organization to assign rules-based conduct for buyer entry, in addition to dashboards that present insights and analytics on the corporate’s safety posture.
SafeBase, which is headquartered in San Francisco, managed to lift $53.1 million in enterprise capital from traders together with Zoom Ventures, NEA, and Comcast Ventures previous to its exit. In line with Yang, SafeBase has over 1,000 prospects at this time, 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 identical time, new laws just like the Digital Operational Resilience Act within the EU are imposing new safety necessities on distributors.
With SafeBase, Markowitz goals to create a “seamless ecosystem” of belief, governance, danger, and compliance choices.
“Along with SafeBase, we’re extra dedicated than ever to empowering our prospects 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 effectively over $300 million in funding and buying over 7,000 prospects together with Notion and Tenable. It counts Iconiq Development and Salesforce Ventures amongst its backers, along with Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner.
Final 12 months, Drata’s income grew 100% year-over-year, and the San Diego-based firm stated that it was including 650 new prospects every quarter. Drata additionally made its first acquisitions, snapping up governance and automation agency Harmonize.io in April and cloud safety platform Oak9 in Might.
A PR rep for Drata informed TechCrunch through e mail that Drata is nearing $100 million in annual recurring income.
However the aggressive development technique hasn’t constantly 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 12 months.
