OneTrust Investment Makes an Impact

OneTrust has raised a lot of money since it was founded in 2016. It raised a $200 million Series A in July 2019, a $210 million Series B in February 2020, and a $300 million Series C in December 2020. Obviously, these are quite high numbers considering the market and the investment system. Today, OneTrust announced a $4.5 billion valuation and $50 million raised for the company, which seems modest given how valuations have been trimmed in recent years. Today's $150 million investment brings the total to over $1 billion, according to the company.

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OneTrust

The round organized by OneTrust was led by Generation Investment Management, the former vice president of Al Gore, with participation from Sands Capital, an existing investor. Kabir Barday, CEO of OneTrust, says the company has evolved considerably since its last round. "We are thrilled that an established firm like Generation Investment Management believes in our vision, business strategy and ability to execute, as evidenced by doubling our ARR to $400 million and achieving our free cash flow milestones," Kabir Barday said in a statement.

OneTrust is taking all this money to build a platform to help customers with trust issues. "We help companies ensure that they can be trusted and that they comply with all the laws around privacy, trust and risk," OneTrust president Alan Dabbiere said during the company's Series C. At the time of the last interview in 2020, the company had 1,500 employees. Today it has grown to 2,100. In 2020, it had 7,500 customers. Today it has more than 14,000. The company was founded in 2016 by former AirWatch employees. VMware acquired it in 2014 for $1.5 billion. OneTrust, which helps companies manage privacy, security and governance requirements in an ever-changing regulatory environment, is not the only unicorn on the decline. OneTrust, which helps companies manage privacy, security and governance requirements in an ever-changing regulatory environment, is not the only unicorn on the decline.

Major names like Klarna and Stripe have made similar rounds as the startup market has continued to slow since their peaks in 2021. The fact that startups have had to settle for a bearish round may say more about how companies are overvalued in 2021 than any declining performance of the companies themselves. OneTrust CEO Kabir Barday said the company has doubled its annual recurring revenue to $400 million starting in 2021. The company plans to use the new funding to meet growing customer demand. OneTrust has more than 14,000 customers worldwide.