Drata Gains $200 Million in New Funding, Pushing Valuation to $2 Billion

Drata, a continuous security and compliance automation platform, has obtained $200 million in Series C funding co-led by Iconiq Growth and GGV Capital.

The latest round of funding doubles Drata’s valuation to $2 billion since its Series B in November 2021. With Drata, thousands of companies streamline over 14 compliance frameworks through continuous, automated control monitoring and evidence collection. That results in improved security, lower costs and less time spent preparing for annual audits.

Drata’s Kevin Kriebel

Kevin Kriebel is Drata‘s vice president of business development. He said Drata partners will benefit from the funding.

“Since Drata’s inception, we’ve had a strong focus on product velocity and execution to address gaps that exist in the governance, risk and compliance (GRC) market today,” he said. “That is why we’re using this latest round of funding in part to invest in R&D, allowing us to continue our pace of innovation to build a more robust platform for partners to provide more comprehensive service offerings. We are also making additional investments into our soon-to-be-released API to enable an open-ended integration network.”

Doubling Down on Partner Ecosystem

Drata launched the first iteration of its partner program this year, Kriebel said. It has quickly grown into a “meaningful” source of revenue for both Drata and its partners.

“We are doubling down on our partner ecosystem by launching our service partner directory in mid-December, enabling our 2,000-plus and growing customer base to connect directly with firms to assist them on their GRC journey,” he said. “Drata’s dedication to the channel also extends to empowering VARs, SIs and MSSPs with a robust library of sales and technical enablement, preferred pricing and NFR accounts.”

In addition, partners have already led the way in bringing Drata to new international markets and will continue to be a major focus of its global expansion strategy. Kriebel said.

Drata has shown “unparalleled speed of execution,” he said.

“We’ve doubled our valuation in 13 months, because we’ve developed a product that our customers and the market find highly valuable,” Kriebel said. “A lot of our next phase of growth will be focused on effortless compliance, which means more integrations, automation and a very strong representational state transfer (REST) API that will power a lot of this.”

What Partners Can Expect in 2023

In 2023, partners can expect Drata’s continued focus on providing the channel with “best-in-class” commercial terms, enablement and new customer acquisition opportunities, Kriebel said.

“In just under two years, Drata has already become the go-to compliance automation platform for 2,000-plus customers and 100-plus partners, and we are just getting started,” Kriebel said.

Oren Yunger is partner at GGV Capital.

“Since leading Drata’s Series A, we’ve been doubling down in every round,” he said.