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Osano, a data privacy platform that helps websites become compliant with international regulations, today announced that it closed a $11 million funding round led by Jump Capital, bringing its total raised to $22.3 million. The company says that the money will be used to support international expansion as well as hire additional sales, marketing, and engineering staff.
Compliance remains a major challenge for enterprises. Businesses in the U.S. on average spent $10,000 per employee on regulatory costs, according to a report from the Competitive Enterprise Institute. Moreover, one whitepaper found that spending on incident response has almost doubled since 2011 as organizations aim to combat a record number of data breaches.
“Compliance isn’t exactly fun, no matter how great the product is, and … new remote mode[s] of work [due to the pandemic] ended up giving companies a lot of excuses to dust off the ‘projects we’ve been meaning to get to’ notebook,” CEO Arlo Gilbert told VentureBeat via email. “Privacy and compliance was at the top of that list. The result has been both good for Osano, but also very good for consumers and an open free internet.”
Osano was founded in 2018 by Gilbert and Scott Hertel after they sold their previous software-as-a-service (SaaS) management company to a large private equity fund. The pair bet that companies would become heavily focused on data privacy and that GDPR and California’s Consumer Privacy Act were only the beginning of legislation spurred by scrutiny of big tech.
“It became clear that compliance, specifically data privacy was going to become a much bigger category than anybody expected,” Gilbert said. “Over the course of 2020, Osano grew like a rocket ship and now counts more than 10% of the Fortune 500 as paying customers. The rest is history.”
The Osano platform, which Gilbert claims is used by more than 750,000 companies (27,000 of which are paying customers), leverages a data privacy scoring graph dataset curated by U.S. bar-certified attorneys. AI models trained on billions of live data samples, both public and private, rate privacy practices and map out third parties with whom Osano users are sharing data.
Osano’s machine learning system scans API endpoints for SaaS providers, determining whether documents contain personal data and classifying any personal data into one of 165 different buckets. The system, which is available as both a SaaS offering and a self-hosted Kubernetes container, also discovers and categorizes non-personal data to automate privacy rights fulfillment.
Osano’s other products touch on consent and preference management, handling tasks like soliciting permission from visitors, employees, and vendors before processing their information. The platform ingests requests from users via the web and phone to delete, redact, or correct their data. Beyond this, Osano maintains a database that keeps track of the risk that companies introduce into a privacy program. Gilbert says that other security and compliance vendors, including SecurityScorecard, license this database.
“Our customers are often struggling to build workflows and the average [subject rights management] request by one single individual takes an average [company] more than 33 hours to complete,” Gilbert said. “Currently, companies rely primarily on assessments and manual reviews of security and privacy documents … Osano turns this into a real-time, auto-updating vendor monitoring program, [tracking] the privacy practices of vendors, litigation against vendors federally and in 28 states, and changes to documents such as privacy policies and other compliance statements.”
In the coming year, Osano plans to expand its data discovery catalog to 500 integrations and continue to optimize its machine learning models, Gilbert says. It also aims to expand its workforce from 31 full-time employees and 25 contractors to 60 full-time employees.
LiveOak Ventures Partners and Next Coast Ventures were among the other participants in Osano’s latest round.
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