DataGuard Raises $61M to Drive Data Protection Innovation
DataGuard, a Munich-based startup offering cloud-based data protection solutions, has successfully raised $61 million in Series B funding, led by Morgan Stanley Expansion Capital. The company focuses on providing small and medium-sized businesses (SMBs) with on-demand privacy, information security, and compliance tools to help meet evolving data protection regulations.
Growth Amid Rising Demand
Despite the broader challenges in the tech sector, DataGuard is thriving. The startup has seen rapid growth, expanding its customer base to over 3,000 customers across more than 50 countries. Its services now cover over 40 million individual users, triple the number of customers since 2020. DataGuard’s revenue has also surged, growing 10x in the last year.
The Need for Data Protection
The increasing volume of data violations and hefty fines has forced companies to get more serious about compliance. DataGuard's suite of tools helps organizations assess how their data is used, ensuring they meet crucial certifications like GDPR, CCPA, ISO 27001, and more. While larger enterprises may have entire teams dedicated to data security, smaller businesses often lack the resources but still face the same legal obligations.
Targeting SMBs with Simple Solutions
DataGuard’s mission is clear: to make complex data protection accessible to businesses with limited resources. The company’s co-CEO, Thomas Regier, shared that the company was designed “for civilians” — businesses that may only have one IT security expert or none at all. For many customers, responsibility for data compliance falls on the marketing team or others who interact with customers.
"We’ve built this for civilians," said Thomas Regier, co-CEO and co-founder of DataGuard. "Our aim is to simplify data protection, so businesses can ensure compliance without needing a full security team."
Shifting Priorities for Businesses
As data protection regulations tighten, companies are feeling the pressure. With the risk of hefty fines, damaged reputations, and higher insurance premiums, businesses can no longer treat data protection as a secondary concern. Today, it is central to their operations, and DataGuard's solutions help them manage this responsibility proactively.
Expanding Beyond Compliance
DataGuard’s growth is not just about compliance; it’s also about improving how businesses manage data security across their entire network. By providing transparency into how third-party partners use data, the company enables businesses to identify and address compliance gaps early. This focus on the bigger picture is becoming a key consideration when companies evaluate potential partners.
Looking Ahead
The company plans to use this new round of funding to enhance its compliance and security tools further. This investment will also allow DataGuard to expand into new markets, competing with other giants like OneTrust and InCountry.
"DataGuard’s all-in-one platform empowers businesses to move beyond simple compliance and use data protection as a competitive differentiator," said Lincoln Isetta, Managing Director at Morgan Stanley Expansion Capital. "We are excited to support DataGuard’s vision and help them continue to grow."
Building the Future of Data Privacy
With its strong growth and increasing relevance in a data-driven world, DataGuard is positioning itself at the forefront of a booming industry. As businesses continue to face mounting pressures to protect sensitive data, companies like DataGuard are proving that compliance and security can be key drivers of success in today’s digital economy.