Fortanix raises $90M to improve cloud security and privacy for highly regulated industries
Fortanix has raised $90 million in Series C financing bringing the total amount the company has raised to over $122 million. The round was led by the Growth Equity business within Goldman Sachs Asset Management (Goldman Sachs) with participation from GiantLeap Capital as well as the existing investors Foundation Capital, Intel Capital, Neotribe Ventures, and In-Q-Tel.
Soumya Rajamani, Vice President at Goldman Sachs, will join Fortanix’s board of directors.
The funding builds upon the growth Fortanix has experienced despite the pandemic and the recent macro-economic conditions. The company has gained customers across multiple verticals including some of the highly regulated industries.
Traditional network security led approaches have not been entirely successful in preventing data breaches and ransomware. Regulatory requirements have increased as have penalty amounts. The data-first approach to security advocated by Fortanix tackles this problem head-on by decoupling security from infrastructure, and provides an elegant way to secure data, wherever it is.
It further allows organizations to credibly conform to privacy laws and regulatory requirements globally including GDPR, Schrems II, HIPAA, PCI, ITAR and several others.
“We constantly look for companies with disruptive technologies and have seen the benefits of its data-first approach,” said Soumya Rajamani, Vice President at Goldman Sachs.
“Many businesses can relate to the challenge of data security and privacy, and we are proud to support the Fortanix team in their mission to solve security and privacy.”, Rajamani continued.
Fortanix’s approach, backed by more than 25 patents, has resonated in the market. The company counts dozens of Fortune 500 companies as its customers, as well as several U.S. government agencies. The company experienced more than 500% growth over the past three years, placing it in the top quarter of the annual Inc. 5000 list of the fastest-growing private companies in America for 2022.
“I am grateful to the new and existing investors for their confidence in the Fortanix team and our technology, and I am thrilled to welcome Soumya Rajamani to our board of directors,” said Ambuj Kumar, CEO and co-founder of Fortanix.
“Cybersecurity is one of the most important needs of our current era. This fundraise is a strong validation of the massive market opportunity ahead as we execute our bold mission.”, Kumar continued.
Strong company execution guides investor sentiment
This round of financing was driven by a number of company momentum factors, including:
- A three-year aggregate growth trajectory of 522%, landing on the 2022 Inc. 5000 list of fastest-growing private companies in the U.S.
- Employee growth of 70% year-over-year to more than 225 employees
- An expanded ecosystem of strategic partnerships that includes over 100 product integrations
- More than 125 marquee global customers across major industries, including healthcare, banking, FSI, technology services, cloud providers, and federal agencies
- Strong intellectual property base with over 25 patents, underscoring the technical differentiation of Fortanix’s data-first approach
- Recent expansion of the leadership team, including the additions of the company’s vice president of legal, chief revenue officer and chief marketing officer