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Theta Lake Attracts $50 Million in Series B Funding to Fuel Expansion of Security and Compliance Solutions for Modern Communications and the Future of WorkMar 23rd, 2022 6:00 EST
SANTA BARBARA, Calif.–(BUSINESS WIRE)–Theta Lake, the leader in unified communication security and compliance solutions tailored to today’s new, increasingly digital and distributed world of work, announced a $50 million series B funding round led by Battery Ventures. The round also includes investments from existing investors such as Lightspeed Venture Partners, Neotribe Ventures and Cisco Investments, as well as new investments from RingCentral Ventures, Salesforce Ventures, and Zoom Video Communications, Inc. The new investment brings the company’s total funding raised to date to over $70 million.
Leveraging certified integration partnerships with the world’s leading unified-communication and online-meeting providers, Theta Lake is helping organizations manage increasingly complex security and compliance issues across new video, voice, chat, and document platforms that are quickly augmenting or replacing older technologies, like traditional e-mail and intranets, as well as in-person meetings. The latest funding round is a validation that the workplace has become increasingly digital since the COVID-19 pandemic, and organizations need new tools to stay compliant and avoid damaging outside cyber threats.
“Theta Lake’s proven, cloud-native technology is gaining traction in the market amid tectonic shifts in the way organizations work, both online and offline,” said Dharmesh Thakker, a Battery Ventures general partner who is joining Theta Lake’s board. “The company’s value proposition is clear: Its technology helps customers avoid costly regulatory missteps and potentially devastating data breaches—mistakes and threats that might not be caught with legacy, email-centric security and compliance technologies. I am so impressed with the Theta Lake team and look forward to helping them continue to scale, and to execute on its broader vision.”
“At Theta Lake, we are rearchitecting compliance with integrated security for the modern communication and information sharing platforms of today’s workforce,” said Devin Redmond, CEO and Co-founder of Theta Lake. “We have seen tremendous adoption of our platform and it is inspiring to see customers using our solutions to unlock more collaboration and productivity for their end-users. Modern compliance and security should be a strategic enabler and we are proving that it can be. The addition of Battery Ventures, along with so many of our strategic integration partners, coupled with our existing investors, will drive our ability to innovate and deliver value to our customers at even a more global scale.”
Theta Lake’s category-defining technology and design leverages patented machine and deep learning (ML and DL), natural-language processing (NLP), and enhanced user experience to capture, archive, detect, and surface risks across video, visual, voice, chat, document, and email content. This includes seamless, truly certified integrations and partnerships with the industry’s leading unified-communication, video-meeting, asynchronous-video, and collaboration suites. These include Webex by Cisco, Microsoft 365 and Teams, RingCentral, Salesforce, Symphony, Verint, Vidyard, Zoom, and many more.
Theta Lake has an industry agnostic platform, currently servicing customers across verticals including financial services, the public sector, healthcare, technology and others to unlock the collaboration-first workplace. By adding advanced security and compliance coverage across what is shared, shown, spoken, and typed, Theta Lake increases the efficiency and effectiveness of compliance and risk teams, while reducing the cost of security and compliance.
In addition to having a “100% would recommend rating” from customers in the Enterprise Information Archiving market via Gartner® Peer InsightsTM, Theta Lake received an honorable mention in the 2022 Gartner Magic QuadrantTM for Enterprise Information Archiving1. The “Strategic Planning Assumptions” for the 2022 Gartner Magic Quadrant for Enterprise Information Archiving2 are:
- By 2025, 45% of regulated enterprise customers will conduct supervision of audio/video content to meet compliance requirements, up from less than 10% in 2021.
- By 2025, 35% of enterprise customers will archive workstream collaboration and meeting solutions for nonregulated requirements, an increase of more than sevenfold from 2021.
With the industry’s first patent for risk detection in video communication, Theta Lake is built for the world of video, voice, and workstream collaboration with partner integrations and now, strategic investments from many of the key leaders in the video meeting and workstream collaboration space.
Cisco Investments: “Cisco Investments and the Cisco Collaboration team are excited to continue as investors and collaborators with Theta Lake,” said Abhay Kulkarni, Senior Vice President, General Manager, Webex, Cisco. “We have seen global customers significantly expand the depth of their usage of Webex Meetings and Messaging by using the integrated solution. That includes hundreds of millions of meetings, messages, and shared file content archived and scanned for compliance, data exposure, and security risks. The ability to bring integrated advanced compliance and security capabilities to Webex customers globally has proven tremendously successful and creates a foundation for our ongoing collaboration.”
RingCentral Ventures (NYSE: RNG): “At RingCentral Ventures, we are excited by the positive impact the Theta Lake integration into our platform has had for our customers,” said Kira Makagon, Chief Innovation Officer of RingCentral. “Leveraging compliance and security to increase collaboration adoption is a compelling value proposition. As a RingCentral Premier Partner with tightly integrated technology, we now have integrated customers with Theta Lake in over three countries and across more than four industry verticals. We are happy to invest in Theta Lake’s ability to continue innovating and delivering value for RingCentral customers.”
Salesforce Ventures (NYSE: CRM): “Salesforce Ventures is very excited to expand our relationship from ISV partner to an investor in Theta Lake’s continued growth,” said Eran Agrios, SVP and GM of Financial Services at Salesforce. “Salesforce and Slack have a vision of enabling the digital HQ, along with integrating the compliance and security technology advancements that Theta Lake continues to deliver for modern communications.”
Zoom (NASDAQ: ZM): “At Zoom, our accelerated pace of innovation addresses customers’ needs quickly and securely, which is why we understand the value of security and compliance for the modern collaboration stack that Theta Lake enables,” said Oded Gal, Chief Product Officer at Zoom. “As one of the earliest integration partners for Theta Lake, we are excited to invest in their future success and drive more joint innovation around integrated security and compliance across the Zoom communications platform.”
“We have been a believer in the vision of Theta Lake as an ‘N-of-one’ security and compliance player for modern communications since leading the Series A,” said Arif Janmohamed, Partner at Lightspeed. “Its accelerating global success has been tremendous, and we continue to be excited in fueling that growth.”
“Since leading the company’s seed round, we’ve been amazed by the team, technology, and market opportunity,” said Swaroop “Kittu” Kolluri, Founder and Managing Partner Neotribe Ventures. “Although not a given, the successful execution of its plan to-date is certainly no surprise, and we are thrilled to invest in accelerating that success out of our new growth fund.”
To learn more about the series B funding and Theta Lake’s vision for the future, please read our blog.
1 Gartner Peer Insights ratings are current as of March 16, 2022.
2 Gartner, Magic Quadrant for Enterprise Information Archiving, 2022, Michael Hoeck, Jeff Vogel, January 24, 2022.
Gartner and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
ABOUT THETA LAKE
Theta Lake’s multi-award winning product suite provides patented compliance and security for modern collaboration platforms, utilizing over 45 frictionless partner integrations that include RingCentral, Webex by Cisco, Microsoft Teams, Slack, Zoom, and more. Theta Lake can capture, compliantly archive, and act as an archive connector for existing archives of record for video, voice, and chat collaboration systems. In addition to comprehensive capture and archiving, Theta Lake uses patented AI to detect and surface regulatory, privacy, and security risks in an AI assisted review workflow across what is shared, shown, spoken, and typed. Theta Lake enables organizations to safely, compliantly, and cost-effectively expand their use of communication platforms. Visit us at ThetaLake.com; LinkedIn; or Twitter at @thetalake.
ABOUT BATTERY VENTURES
Battery partners with exceptional founders and management teams developing category-defining businesses in markets including software and services, enterprise infrastructure, online marketplaces, healthcare IT and industrial technology. Founded in 1983, the firm backs companies at all stages, ranging from seed and early to growth and buyout, and invests from six global offices: Boston; San Francisco and Menlo Park, Calif.; Herzliya, Israel; London; and New York. Follow the firm on Twitter @BatteryVentures, visit our website at www.battery.com and find a full list of Battery’s portfolio companies here.