Drata, a security compliance automation platform that helps you adhere to frameworks like Soc 2 and GDPR, has acquired Software Security Review Startup SafeBase for $250 million.
SafeBase co-founders Al Yang (CEO) and Adar Arnon (CTO) will remain in their role, and SafeBase will continue to offer standalone products while continuing to provide core solutions to Dorata’s platform.
“This partnership is more than just a combination of complementary products,” Yang wrote in a post on SafeBase’s official blog on Tuesday. “It’s a coalition of companies that are obsessed with two clients, with maintenance and culture, focusing on providing the tools that enterprises need to succeed.”
Yang and Arnon founded Safe Base in 2020 after meeting at Harvard Business School. Incubated by Y Combinator, the company helps customers fill out security surveys. This is a review that your organization usually kicks off before purchasing new software.
SafeBase uses AI models specifically trained in security document use cases to read, interpret security information and questions, and automatically respond to security surveys. Beyond custom models, SafeBase offers an engine that allows companies to assign rule-based behaviors to customer access, as well as a dashboard that shows insights and analysis of the company’s security attitude.
San Francisco-based SafeBase was able to raise $53.1 million venture capital from investors including Zoom Ventures, NEA and Comcast Ventures before dropping out. According to Yang, SafeBase currently has over 1,000 customers, including LinkedIn, Palantir and Crowdstrike.
As Drata’s co-founder and CEO Adam Markowitz pointed out in a post Tuesday, Drata’s SafeBase acquisition comes as demand for trust management solutions grows. Cloud apps and AI are increasing organizations’ reliance on third parties with access to sensitive data. At the same time, new regulations, such as the EU’s Digital Operations Resilience Act, impose new security requirements on vendors.
With SafeBase, Markowitz aims to create a “seamless ecosystem” of providing trust, governance, risk and compliance.
“Along with SafeBase, we are committed to enabling our customers to build trust, expand, unlock growth and achieve success more than ever,” Markowitz said in his blog. Masu. “In time for Dorata’s fourth anniversary, this milestone marks the beginning of an exciting new chapter.”
Founded in 2020, Drata has grown rapidly over the years, securing more than $300 million in funding and gaining over 7,000 customers, including concepts and tenables. In addition to Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner, he also counts Iconiq’s growth and Salesforce Ventures among supporters.
Last year, Drata’s revenues rose 100% year-on-year, with the San Diego-based company saying it’s adding 650 new customers per quarter. Drata also made its first acquisition, snapping governance and automation company Harmonize.io in April and cloud security platform OAK9 in May.
A Drata PR official told TechCrunch in an email that Drata is approaching $100 million in recurring revenues over the year.
However, aggressive growth strategies have not been consistently rewarded. Last September, Dorata fired about 40 people, or 9% of the workforce. At the time, the company was hinting at “sustainable growth.” Drata’s personnel increased by a whopping 52% from 2023 to last year.
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