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OneTrust, a maker of privacy and security software, reached a $5.1 billion valuation after raising $300 million from venture firm TCV and existing backers Insight Partners and Coatue.
“This round gives us flexibility for future acquisitions, recruiting and growth,” OneTrust co-Chairman Alan Dabbiere said in an interview. The Atlanta-based company may pursue smaller rivals, he said, referencing its 2019 purchase of privacy-laws specialist DataGuidance. “These are the kinds of creative acquisitions that have driven our growth and success.”
Tim McAdam, a TCV general partner, described the startup as “category-defining,” noting that it caught the attention of his firm after reaching $150 million in annual recurring revenue faster than any other company in the business-to-business software space.
OneTrust, founded in 2016 and led by Chief Executive Officer Kabir Barday, has more than 7,000 clients, including Aetna Inc., Kickstarter, Oracle Corp. and Tencent Holdings Ltd., its website shows. Recently it’s been adding roughly 1,000 new customers each quarter, Dabbiere said.
OneTrust’s growth trajectory could soon result in a public-market debut, Dabbiere said, adding that no timing has been decided. “We view the next step as an IPO — it’s part of a natural progression for technology companies of a certain size and scale,” he said.
The latest funding comes after the company in February raised $210 million at a $2.7 billion valuation led by Coatue and Insight, more than doubling its July 2019 valuation of $1.3 billion after Insight led a $200 million investment.
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