OneTrust, based in Atlanta, secured $150 million in funding to meet customer demand for trust intelligence software and drive its growth. Led by Generation Investment Management, the funding round valued OneTrust at $4.5 billion, a reduction of over 15% from its previous valuation of $5.3 billion in April 2021.
The CEO, Kabir Barday, emphasized the importance of technology in navigating changing regulations and new business initiatives, aiming to prioritize trust in operations, privacy, security, ethics, and ESG requirements.
OneTrust became the second cybersecurity vendor to publicly lower its valuation in exchange for additional funding, following Boston-based Snyk, which cut its valuation by $1.1 billion to secure $196.5 million. In response to the economic downturn, OneTrust implemented a strategy shift, laying off 950 employees (25% of its staff) in June 2022 to strike a balance between growth and profitability.
Despite the staff cuts, OneTrust remains a well-regarded market leader in the data privacy compliance software space, according to IDC, representing 40.2% of the $1.1 billion market in 2020.
Generation Investment Management’s investment in OneTrust marks its entry into the cybersecurity space and demonstrates confidence in the company’s vision, leadership, and execution.
As OneTrust received top ratings in global data privacy management software assessments, the investment further solidifies its position in the market. Co-founded by Al Gore in 2004, Generation Investment Management has invested in various firms, including Asana, Proterra, Remitly, and Toast, and continues to support OneTrust’s mission to excel in privacy and governance.