Data security company Very Good Security announced recently that it has raised $35 million in a series B funding round.
VGS works with its customers, including payment facilitators, to “descope their systems,” eliminating the need for them to possess sensitive data. This reduces their risk exposure and their responsibility for compliance with certifications such as the PCI Data Security Standard.
Founded in 2016, VGS works by securely storing the original sensitive data that flows in and out of its customers’ businesses in its vault, replacing it with an “aliased” version for the business’s use.
“For most companies, data is simply an input to achieve a business outcome, such as getting paid, underwriting a loan, or running a background check,” VGS cofounder and CEO Mahmoud Abdelkader said in a press release.
“VGS provides specialized SaaS infrastructure to make it easy for developers and businesses to achieve their objectives while offloading the risk that comes with data custodianship.”
The funding round was led by Goldman Sachs with participation from other investors including Andreessen Horowitz and Vertex Ventures U.S.
“Data compromise is one of the largest cyber-security and reputation risks businesses face today,” David Campbell, a managing director in Goldman Sachs’ Merchant Banking Division, said.
“Securing data is traditionally complex and expensive. VGS’ unique solution redefines the challenge by removing the sensitive data from systems making them easier to build, secure and manage, reducing both time and cost of securing data.”
The company plans to use the funds to support growth and product development, it said in a blog post.