Atlanta data privacy and security startup OneTrust LLC raised $210 million, according to an April 6 filing with the U.S. Securities and Exchange Commission.
The filing comes weeks after OneTrust, which has a valuation of more than $5 billion, made two acquisitions to expand its suite of services. The startup raised about $510 million, the highest amount of any Atlanta technology company, in 2020.
Existing investors include Silicon Valley’s TCV growth equity firm, global technology firm Coatue Management LLC and New York’s Insight Partners. OneTrust, led by CEO Kabir Barday, did not respond to a request for comments before press time.
Founded in 2016, OneTrust has become a global company within five years. Its suite of products helps companies protect client data, comply with privacy guidelines, evaluate risks and manage internal and external ethics and compliance.
It has about 1,500 employees in its Atlanta and London co-headquarters and in 10 other offices around the world. About 7,500 companies use OneTrust, including more than half of the Fortune 500, according to the company. In 2020, Inc. Magazine named OneTrust the No. 1 fastest-growing private company in America.
OneTrust’s success bodes well for the Atlanta technology ecosystem. As Atlanta startups reach more milestones, experts say it makes it easier for the next generation of startups to prosper as the city cements its title as an East Coast tech hub.
Technology giants such as Google and Microsoft announced local expansions this year, adding to Atlanta’s reputation, and more institutional venture capital firms are closing funds to support early-stage startups.
OneTrust’s growth indicates an emerging, global market for privacy and security tools that allow companies to use customer data while balancing customer trust and government regulations, OneTrust Co-Chairman Alan Dabbiere said.
"Your brand is becoming much broader than your product,” Dabbiere told Atlanta Inno in March. “Consumers want to know that you are a trustworthy, ethical company.”
OneTrust bought Denver, Co.-based company Convercent for its “whistleblowing” software, which allows employees to report problems they see within the company, anonymously or otherwise. The March deal marks OneTrust’s sixth acquisition, and Dabbiere said there may be more on the horizon as the company continues to expand its capabilities.
The Convercent acquisition aimed to accelerate the development of the OneTrust Ethics software. Convercent’s technology, 700 customers and 150 employees were planned to integrate into company. The financial terms of the deal were not disclosed.
Weeks earlier, OneTrust acquired Docuvision Inc. for its ability to use artificial intelligence to redact specific information. In 2020, the company acquired Integris Software to enhance its automated privacy, security and data governance programs.
OneTrust Environmental, Social & Governance is the company’s newest software, which allows clients to manage initiatives in those areas, such as carbon output or diversity, equity and inclusion programs.
An experienced management team and a culture of attracting talent has contributed most to the company’s success, Dabbiere said in December after OneTrust’s $300 million Series C round.
Much of the team worked together previously at supply-chain execution software company Manhattan Associates (NYSE: MANH), which went public in 1998, and mobile management and security company AirWatch, which was acquired by VMware, Inc. (NYSE: VMW) in 2014.
