Privacy Software Vendor OneTrust Raises $210M, Valued at $2.7B

Just seven months after a $200 million Series A funding, data privacy software vendor OneTrust announced an additional $210 million in Series B. 

This second round of funding brings the company's valuation to $2.7 billion, more than doubling its valuation of $1.3 billion from July 2019. For a company that was founded only four years ago, this is remarkable.

It’s not just OneTrust putting up these kinds of investment numbers. Data privacy management software providers are quickly expanding their offerings and product functionality thanks to an influx of recent investment money. For example, in January 2020 alone, two major privacy software vendors, Securiti.ai and BigID, separately announced investments of $50 million each. This is not to mention the flurry of investments that took place in late 2019, such as startup DataGrail backed as part of Okta’s $50 million venture fund or another startup, Osano, raising $5.4 million in Series A funding.

What’s driving this investment? Legislation. The California Consumer Privacy Act (CCPA) went into effect on Jan. 1, 2020, setting the standard for the nation. Other laws across the U.S., as well as those in other countries, are fueling the need for businesses to purchase privacy software to comply with myriad data privacy laws.

Data privacy software in 2020 and beyond

If 2019 was the year for acquisitions, 2020 will be the year for further consolidation. In 2019, acquisitions in the data privacy software space included TrustArc’s purchase of Nymity and OneTrust’s acquisition of the IAPP’s Privacy core eLearning solution and DataGuidance. In 2020, keep your eyes on acquisitions of consent management platform (CMP) to round out privacy software solutions, in particular.