Goldman Sachs Backs Data Startup Fortanix in $90 Million Round

(Bloomberg) -- Data security startup Fortanix Inc. raised $90 million from backers led by a Goldman Sachs Group Inc. fund, as cybersecurity companies attract investor interest despite a cooling venture financing market.

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The Mountain View-based company’s Series C round was fronted by Goldman Sachs Growth Equity, with participation from Giantleap Capital and existing investors including Intel Capital, the startup said in a statement. Soumya Rajamani from the Goldman Sachs fund will join Fortanix’s board.

The capital will help Fortanix expand its product suite used by more than 125 customers from Google and PayPal Inc. to government agencies including the US Department of Justice. Its business has grown more than 500% over the past three years on demand from customers in Europe, Asia and the US, the company said.

The startup was established in 2016 by Ambuj Kumar and Anand Kashyap, both alums of Indian Institute of Technology Kanpur. The firm launched its first product three years later, taking on established rivals with a solution that keeps data encrypted at all times, whether in storage, transfer or being processed. Its products help customers comply with various privacy laws and regulatory requirements across the globe.

“Cybersecurity is a $200 billion market and while most other services will get consolidated when they move to the cloud, security and privacy will remain separate,” Kumar, the company’s chief executive officer, said on a video call from the San Francisco Bay area. The startup has over 225 employees, a third of them in Bangalore.

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