Tech

DataGuard Secures $61 Million for Data Protection as a Service


companies are facing hundreds of millions of dollars of fine Nowadays Disobey With the introduction of data protection and data privacy rules, many organizations and their users are taking data protection seriously. One of its by-products is the emergence of new technologies to keep up with increased activity.

data guard A Munich-based start-up focused on a SaaS-based business model, offering privacy, information security and other data protection as a suite of on-demand, cloud-based ‘as-a-service’ tools to SMEs. increase. He announced that he has secured $61 million in Series B funding led by Morgan Stanley Expansion Capital.

The investment also includes One Peak, the UK VC that led DataGuard. Last round of funding of $20 million In 2020, the first external funding for a startup. Bastian Nominacher (Co-Founder/Co-CEO of Celonis), Hanno Renner (Co-Founder/CEO of Personio) and Carsten Thoma (Founder of Hybris) are also on board.

DataGuard did not disclose its valuation. But another indicator of how it’s doing is that the startup continues to grow despite the broader contraction we’re seeing in the tech sector. Today, in over 50 countries, he has over 3,000 customers, providing tools that cover over 40 million individual users (employees, customers and other stakeholders). That’s three times his in 1,000 of her customers in 2020. DataGuard doesn’t disclose specific revenue numbers, but it’s also been growing, nearly tenfold over the last year. The company’s definition of an SMB is somewhat fluid and includes large mid-market end users. Our customer list includes well-known names such as Canon, Hyatt, and Unicef.

DataGuard offers a variety of tools across privacy, information security, and compliance that allow you to assess the different ways your organization uses data. Analyze this data to determine if your company is compliant with various certifications (GDPR, CCPA, ISO 27001, TISAX, SOC 2, etc.). If not, what do I need to do to be compliant?

The basic idea behind DataGuard is that large companies have a team of in-house staff (lawyers, engineers, data scientists) to monitor, implement, and coordinate the organization’s data protection, privacy, and compliance policies. A lot of people and budgets pile up yet It doesn’t work); Smaller organizations may have less manpower, but the work they have to do is just as big.

Thomas Regier (above, left, co-CEO and co-founder of Kivinc Semen, right) says that its target audience may be network security professionals, but they are not. who are not.” data security. Some customers may have no in-house security experts at all, he added. The task of how to ensure that data protection is legally and soundly implemented falls, for example, to the marketing team. In some cases, it is the people using the data who are tasked with making sure it is done right, as it is part of the critical area that data protection is intended to cover.

“We made this for civilians,” he said.

Indeed, marketing, and in particular cookies and data consent interfaces related to marketing and “analytics,” have been the most obvious aspects of data privacy and protection for many of us over the last few years. Fueled by GDPR and other regulations, we see these consent windows on a daily basis. Many businesses are lamenting the impact of the popularity of “deny all” on their bottom line. And the big headlines we read about data protection breaches tend to be much the same.In her one instance earlier this month, Instagram $400 million or more in fines For misusing children’s data under European GDPR regulations.

But, Regier said, these days, on top of this, there’s the added pressure that companies with very bad publicity get from good investigative exposures in the media.

“Marketing is a big piece of the puzzle, but the second part is that companies are protecting their customers’ data,” he said. “They need to beef it up or they will lose customers so they have no choice. Cyber ​​insurance premiums soar, is another sign of how businesses can be economically impacted if they do not implement strong security and data protection. (Whether these premiums are valid is debatable Other reasons, but. )

A third key factor DataGuard sees among its customers is commercial pressure. This means organizations are now more proactively screening partners to make sure they are held accountable, both proactively and reactively if something goes wrong.

Interestingly, DataGuard uses mechanisms very similar to how data brokers themselves operate to see how a company’s data may be used by third parties and customers, You can identify locations that may not be compliant or, conversely, alert those third parties in an event. All data is at risk. Getting the big picture is becoming more and more important as part of the review process companies go through when tackling procurement transactions.

The compliance part of the business is a new area, but the company will use part of this investment to continue its development. It could also open the door for more scrutiny of more aspects of security and data protection, such as when DataGuard offers similar services, crossing over to data networking and endpoint management.

Add to that the fact that DataGuard has grown so far with very little outside funding, and that’s all the reason investors are paying attention.

Lincoln Isetta, MD, Morgan Stanley, said: Extended capital, in a statement. “DataGuard’s unique all-in-one platform enables customers to go beyond simple ‘check-box’ compliance, information security and data privacy practices and instead manage their data as a competitive differentiator. It is evident from our diligence. I am delighted to be joining the DataGuard team and look forward to helping them succeed. “

“DataGuard has experienced strong growth since our initial investment, which speaks to the drive and ability to execute of our founders and their leadership team. We have been working together for years,” added One Peak managing partner David Klein and partner Christoph Mayer in a joint statement. “Over the next decade, businesses will invest tens of billions of dollars in compliance and security to become and remain trusted partners. , we are excited to double down on our investment to support the company as it further accelerates its growth trajectory and expands its geographic reach.”



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