May 28, 2024 - Technology

Exclusive: Data privacy platform lands $40M

Illustration of pile of money with hovering cursor

Illustration: Eniola Odetunde/Axios

Data compliance platform Transcend has raised a $40 million Series B round led by StepStone Group, the startup exclusively shared with Axios.

Why it matters: The new funding round will help the startup compete against legacy data privacy tools from OneTrust and others.

  • Data privacy and identity management has proven to be one of the most stable outlets for cyber investors, despite an unpredictable macro environment.

Zoom in: Transcend has expanded in recent years from a platform that solely helps consumers navigate their own data privacy to a product suite that now helps companies respond to data deletion requests, opt-outs of third-party sales, and other regulatory requirements.

  • Transcend's tools are able to find where user data lives throughout a company's business systems, export it and give it to the user — or simply delete it all, depending on the request.
  • The new Series B round brings Transcend's total raise to nearly $90 million, the company said. Customers include LG Electronics, Plaid, Brex and Rippling, and a few Fortune 500 companies.

The big picture: Several U.S. states and countries around the world have enacted new data privacy laws that give customers new rights to opt out of the sale of their data to third parties, request that companies delete their information, and more.

  • This has created a regulatory headache for companies, and forthcoming artificial intelligence regulations are likely to add to the list of responsibilities that security executives must consider.

What they're saying: "Customers are very clear that they want to have everything under one roof, and they need that to be actually technical enough to talk to the systems that are processing the data," Ben Brook, CEO and co-founder of Transcend, told Axios.

What's next: Brook says Transcend plans to use the funding to target a broader customer market.

  • That includes making investments in the product, research and development, and bringing in more customers.
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