Red Dot Capital Partners leads round as anecdotes enables scalable, full-journey Compliance for publicly traded companies, high-growth startups, and cloud-powered industry leaders
anecdotes, the first operating system (OS) for Compliance, announced $25 million in Series A funding led by Red Dot Capital Partners, with participation from Vintage Investment Partners, Shasta Ventures, Glilot Capital Partners, and Aleph. The news comes after the company experienced rapid growth in 2021, including commercial agreements with Similarweb (NYSE: SMWB), Riskified (NYSE: RSKD), Fiverr (NYSE: FVRR), Unity (NYSE: U), and more. The funding will primarily be used to continue the development of new applications for anecdotes’ Compliance OS platform, specifically tailored to the needs of fast-growing companies. As part of this round, Barak Salomon and Atad Peled of Red Dot will also join anecdotes’ Board of Directors.
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“You just can’t shake the feeling that Compliance, and all those who work in the field, feel like the forgotten ones in the security community”
anecdotes serves as a home base for everything Compliance related and at every stage of the Compliance journey. Its platform continuously collects and maps data from dozens of the most often-used systems and tools, including AWS, Snowflake, Cloudflare, GitHub, Datadog, and more. That data is then leveraged to power various applications for virtually any Compliance need (e.g., audit management, risk analysis, policies, and customer evidence). Through customized controls and frameworks, including those based on previous and ongoing requirements, companies can seamlessly meet internal and external audits and have the visibility, flexibility, and data-backed intelligence to simultaneously scale their Compliance programs against their own impressive growth.
After raising $5 million in seed funding in February 2021, anecdotes saw a 175% increase in hypergrowth and post-IPO commercial customers. The company added 70 integrations with identity providers, security tools, collaboration software, ticketing, and cloud infrastructure platforms in 2021 alone, and tapped two new industry veterans to its expanding advisory board: Prabhath Karanth, renowned information security expert and Head of Security Compliance and Assurance for TripActions, and Terry O’Daniel, Director of Risk and Compliance at Instacart.
“You just can’t shake the feeling that Compliance, and all those who work in the field, feel like the forgotten ones in the security community,” said Yair Kuznitsov, co-founder and CEO of anecdotes. “Compliance is too often left fighting for the scraps — taking screenshots, working out of spreadsheets, and manually ticking boxes. The tools available to them now are essentially templates for meeting basic requirements and passing audits, offering very little scalability and customization needed to facilitate growth. By breaking down siloed processes, replacing outdated manual activities with automation, and establishing an underlying fabric via which Compliance posture can be monitored and understood at all times, we transform Compliance from a burden into a driver for growth and expansion.”
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Despite the added scrutiny on data privacy and protection and newly added regulations over the last several years, 75% of Compliance leaders say they still lack the confidence to effectively run and report on program outcomes, according to Gartner. In addition, Deloitte estimates that 87% of Compliance leaders struggle to deliver against the continually increasing expectations with their current resources.
“This data is completely concerning, all things considered,” said Atad Peled, investor at Red Dot. “The enterprise has sleek, sophisticated tools for even the most rudimentary needs, from calendars and scheduling to workflow and project management. Not to mention that there is an insatiable appetite for data protection and privacy today. And yet, most Compliance leaders rely on basic and outdated technology like spreadsheets or tedious manual labor to manage critical infrastructures and postures, essentially left to do their jobs with one hand tied behind their back in the process. Getting through one audit once a year is one thing, but there remains a huge market gap in addressing needs beyond that for fast-growing companies with super complex and forever-evolving infrastructures on a regular basis. This is why anecdotes and its Compliance OS system are so critical and directly primed for rapid growth.”