The Investors Who Believe in the Data Privacy Startup
Established in 2018, DataGrail raised over $9 million before the Series B financing round. Victoria Treyger from Felicis Ventures is joining the board of directors for the company. Felicis Ventures is an investment firm with a long track record of successful investments. The California-based venture capital firm invested in Fitbit, Shopify (a large ecommerce software company), Warby Parker, and Dollar Shave Club (acquired by Unilever).
Other investors in the Series B round included Next47, Basis Set Ventures, and Operator Collective. Next47's portfolio includes AEVA (stock ticker NYSE: AEVA, the business went public in March 2021), Deepscale (a computer vision business acquired by Tesla in 2019)
Which Business Customers Use the Platform?
DataGrail has done well in signing up multiple large organizations. The data privacy company counts Overstock, G2, Snyk, Databricks, Crunchbase, and Netgear (a networking business). Further, the startup company also works closely with business users in data-intensive fields such as Outreach (a sales communication business) and Zoominfo (a B2B sales database provider)
Managing Over Nine Hundred Integrations
The data privacy company model is based on accessing data from across a company. That’s why DataGrail has implemented hundreds of integrations. The privacy business connects with Stripe, Okta, AWS, Intercom, Box, Salesforce, Shopify, and Workday.
DataGrail's capabilities go beyond sales and marketing. The data privacy company also protects job applicant privacy by connecting with Beamery, Greenhouse, Hireology, Lever, and Resource. Additionally, the privacy software company manages accounting data via integrations with Bill.com, Carta, Coupa, Expensify, FreshBooks, and Oracle Hyperion. In the B2B marketing area, DataGRail connects with Bombora, DemandBase, GrowSurf, LeanData, and Siftrock.
Privacy Regulations Create a New Business Model
Several jurisdictions around the world have imposed new privacy laws and regulations over the past five years. In California, the California Consumer Privacy Act (CCPA) was passed in 2018. Across the Atlantic, the European Union implemented the General Data Protection Regulation (GDPR) regulation in 2018. These laws and regulations create an administrative burden on business managers and employees. Failing to stay compliant can result in fines and negative publicity. Between January 26, 2020, and January 27, 2021, total penalties issued under GDPR are more than $190 million.
However, these regulations also present a business opportunity for several companies. NBC News reported that nearly three hundred companies sell privacy services, including DataGravity (acquired by HyTrust), Dataguise, DataTrue, and Datastream.io.
About the Author
Bruce Harpham is an author and marketing consultant based in Canada. His first book, "Project Managers At Work," shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.