Drata, a security compliance automation platform that helps companies comply with frameworks such as SOC 2 and GDPR, has laid off 9% of its workforce, or 40 people in total.
Founded in 2020, Drata integrates with dozens of cloud, SaaS apps, developer tools, security systems, and more to provide businesses with the evidence they need to prove their data privacy and security practices are sound. We will assist you in checking.
As layoffs continue to plague the tech industry in 2024, Drata reported some impressive growth metrics just seven months ago. The San Diego-based company claims 100% year-over-year revenue growth, adds “650 new customers per quarter” and hires a series of senior executives for fiscal year 2024 (FY24). He said there was.
Of note, Drata also said at the time that it had increased its headcount by 52% in seven countries year-over-year, and with its first acquisitions starting with Harmonize in April, this number will no doubt increase since then. It would have increased over the next few months. By Oak9 a month later.
But growth doesn't always translate into healthy profits, especially if a company grows too fast. Dorata referred to “sustainable growth” in a statement to TechCrunch after we received information about the layoffs.
“Dorata has experienced three and a half years of tremendous growth, improved our organizational structure, and reduced our workforce by 9%,” the company said in an email sent by Sofia Hatev, the company's communications director. . “We are extremely grateful to the affected employees and their contributions. This strategic move will increase operational efficiency and drive sustainable growth as the company charts its path toward a future IPO.” It is intended to.”
Drata has raised well over $300 million in funding, the bulk of which came from a $200 million investment in December 2022, valuing the company at $2 billion. Its backers include prominent institutional investors such as Iconiq Growth and Salesforce Ventures, as well as Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner.