Data security solutions provider Egress on Tuesday announced that it has raised $40 million in a Series C funding round led by FTV Capital, with participation from existing investor AlbionVC.
Egress says it will use the newly acquired funds to continue its growth in North America and Europe, and accelerate the development of new technologies for its data security platform.
Kyle Griswold, partner at FTV, will join the Egress board of directors as part of the transaction.
The latest funding round brings the total raised by the company to date to just over $47 million – the Series A and Series B funding rounds raised far smaller amounts.
However, new regulations, such as the EU’s General Data Protection Regulation (GDPR), the New York Department of Financial Services (NYDFS) Cybersecurity Regulation, and California’s Consumer Privacy Act, have led to an increased demand for data protection solutions and Egress says its annual recurring revenue (ARR) increased nine times since its Series A round in 2014. The company says it now has more than 2,000 customers and its products support over 5 million users around the world.
Egress provides an AI-powered platform designed to help organizations control and secure unstructured data, as well as meeting compliance requirements. Its solutions can be used for email and document classification, accidental sending prevention, securing online collaboration, file and email protection, and auditing and compliance reporting.
Egress is operated through separate companies in the UK, the US and Canada.
“We look forward to supporting Egress as it enters the next stage of expansion,” said Ed Lascelles, partner at AlbionVC. “We have witnessed first-hand how the business has built out an enterprise-grade data security platform from a niche point solution, while growing into new verticals and geographies during the period. The demand for enhanced data security is only going to increase and so we remain excited about the team’s ability to continue delivering rapid growth.”
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