According to a Gartner survey, despite increased focus on data privacy and protection and newly imposed rules in recent years, roughly 75% of compliance leaders still lack the confidence to properly operate and report on program outcomes. Anecdotes, a San Francisco-based startup, created a compliance operating system platform to provide organizations with tailored compliance services. “The [compliance] tools available to [users] now are essentially templates for meeting basic requirements and passing audits,” said Yair Kuznitsov, co-founder and CEO of anecdotes. “They offer very little in the way of the scalability and customization needed to facilitate, rather than hinder, growth.”
“We turn compliance from a burden to a fuel for development and expansion by breaking down walled processes, automating outmoded manual operations, and providing an underlying fabric through which compliance status can be monitored and understood at all times.” Today, anecdotes announced a $25 million Series financing to build new apps for its compliance operating system platform that are specifically geared to the demands of fast-growing businesses.
After raising $5 million in initial capital in February 2021, the company experienced a 175 percent growth in post-IPO commercial customers. Similarweb, Riskified, Fiverr, Unity, and other companies had commercial ties with the startup. In only 2021, the company launched 70 new integrations with identity providers, security tools, collaboration applications, ticketing, and cloud infrastructure platforms.
Kuznitsov, CPO Roi Amior, and R&D VP Eitan Adler, all of whom come from a cybersecurity background and have experience with data-based compliance, formed Anecdotes in 2020. Anecdotes claim to collect and map data from AWS, Snowflake, Cloudflare, GitHub, Datadog, and other sources on a continual basis. The data is subsequently used to support a variety of compliance applications, including audit management, risk analysis, policies, and customer evidence. Companies can fulfill internal and external audits with its tailored controls and frameworks and have the visibility, flexibility, and data-backed analytics to scale their compliance program in tandem with their outstanding growth.
Vintage Investment Partners, Shasta Ventures, Glilot Capital Partners, and Aleph were among the investors in the Series around, which was led by Red Dot Capital Partners. As part of this financing, Red Dot’s Barak Salomon and Atad Peled will join the anecdotes’ board of directors. The company, which has R&D centers in Israel, intends to create a new office in New York and expand its workforce from 60 to 120 people, with global employment.
“Today, there is an insatiable demand for data security and privacy. “However, most compliance leaders rely on basic and outdated technology like spreadsheets or time-consuming manual labor to manage critical infrastructures and postures, essentially leaving them to do their jobs with one hand tied behind their back in the process,” said Atad Peled, CEO of Atad Peled & Associates. Red Dot Capital Partners’ principal. “It’s one thing to go through a single audit once a year, but there’s still a major market vacuum in addressing ongoing demands for fast-growing organizations with incredibly complicated and ever-evolving infrastructures.” This is why anecdotes and its compliance OS system are so important and ripe for quick expansion.”