Compliance automation could be key to beating regulatory sprawl, Vanta raises $40 million

Compliance is an all or nothing game. An organization either adheres to the data protection rules to the letter or is mercilessly fined. However, the complexity of the regulatory landscape and a shortage of cybersecurity professionals make it difficult to mitigate risk.

Yesterday, Security and Compliance Automation Platform vanta announced it has raised $40 million as part of an extension of a Series B financing round that closed in June that valued the company at $1.6 billion.

Vanta’s solution helps organizations meet compliance standards, including SOC 2, HIPAA, and the GDPR.

This round of funding confirms that automation is key to staying compliant in an era of comprehensive data protection regulations, from the GDPR to the California Consumer Protection Act (CCPA).

Manual compliance is not practical

The announcement comes shortly after Sephora and meta received heavy fines for violating the CCPA and the GDPR respectively.

While these are isolated situations, most organizations recognize the need to comply with data protection regulations but lack the in-house resources and expertise to secure their environment.

It is often impractical for these organizations to prevent security incidents and manually implement data controls, exposing them to cyberattacks and regulatory fines.

The answer to this predicament is not necessarily to strengthen compliance as an afterthought, but to build automated processes from the ground up so that security teams can scale to secure their environments at a high level, in line with necessary regulatory requirements. frames.

“Today, companies need to think about security and compliance from day one,” said Christina Cacioppo, CEO of Vanta.

“Most cannot afford to hire someone full time, but the cost of getting it wrong is huge. Vanta evens the playing field for software companies in a downturn, helping them win business and prove their compliance with less spending overall. We are honored to have industry leaders such as: crowd strike support Vanta as a next-generation security company,” said Cacioppo.

Vanta provides users with auditor-verified controls and the ability to check their environments for compliance gaps for regulatory frameworks, including SOC 2, ISO 27001, HIPAA, PCI DSS, AVG, and CCPA, which speed up the certification process and reduce the risk of failure. compliance.

A Brief Look at the Compliance Automation Market

Polaris Market Research expects the enterprise governance, risk and compliance software market to be worth $96.98 billion by 2028 as more organizations seek to control the proliferation of compliance.

One of Vanta’s main competitors in the market is: Drata, a compliance platform that enables enterprises to automatically monitor data protection controls and identify gaps in compliance with regulatory frameworks, including SOC 2, ISO 27001 and HIPAA. Drata recently announced to raise $100M in Series B financing round.

Another competitor is HyperProofwhich raised $16.5 million as part of a Series A financing round earlier this year for an automated compliance platform for managing internal controls, automating audit processes and workflows, and assessing compliance attitudes.

At this stage, Vanta aims to differentiate itself from other providers by helping organizations improve their compliance status based on insights gained from other companies’ compliance journeys.