Fortanix Raises $90M in Series C Funding Led by Goldman Sachs Asset Management to Accelerate Leadership in the Data Security Market
Oversubscribed round validates company's data-first approach to solving cloud security and privacy issues for global businesses thwarting data breaches and ransomware
MOUNTAIN VIEW, Calif., Sept. 15, 2022 — Fortanix® Inc., the data-first multicloud security company and the pioneer of Confidential Computing, today announced $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 significant and sustained 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.”
Fortanix's innovative 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."
Strong Company Execution Guides Investor Sentiment
This significant 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
- Read Fortanix CEO Ambuj Kumar’s Series C announcement blog
- Learn about the company’s journey in this conversation with the two founders
- Explore a new approach to enterprise data security on the Intel Capital blog
- Read this blog post from Neotribe Ventures
- Check out this latest blog from Foundation Capital: Fortanix Raises $90M Series C
About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, and infrastructure. Since 2003, the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer, and healthcare.
About GiantLeap Capital
GiantLeap Capital is a next-generation private investment firm focused on investing in technologies that are transforming critical industries at the convergence of physical and digital infrastructure. The firm takes a long-term, thematic approach to provide flexible capital focused on idiosyncratic investment opportunities across growth stages. For more information, please visit https://www.giantleapcapital.com.
Fortanix secures data, wherever it is. Fortanix’s data-first approach helps businesses of all sizes to modernize their security solutions on-premises, in the cloud and everywhere in-between. Enterprises worldwide, especially in privacy-sensitive industries like healthcare, fintech, financial services, government, and retail, trust Fortanix for data security, privacy and compliance. Fortanix investors include Goldman Sachs, Foundation Capital, Intel Capital, In-Q-Tel, Neotribe Ventures and GiantLeap Capital. Fortanix is headquartered in Mountain View, CA. For more information, visit https://fortanix.com/.
Sammy Totah, BOCA Communications for Fortanix