Certa, a leading compliance, governance, and risk management platform for enterprises, announced today that it has successfully raised $35 million in a Series B funding round. The funding was co-led by Fin Capital and Vertex Ventures, with participation from Tru Arrow Partners, Point72 Ventures, BDMI, Mantis VC (backed by The Chainsmokers), and GOAT Capital. With this latest round, Certa has raised a total of “just over” $50 million in capital.
Key Takeaway
Certa, a compliance and risk management startup, has raised $35 million in a Series B funding round. The company offers a comprehensive platform that simplifies third-party risk management for enterprises. With its orchestration engine, Certa enables stakeholders to collaborate on risk-exposed business processes effectively. The funding will provide Certa with the resources needed to accelerate its business and solidify its position in the growing enterprise risk management market.
Enhancing Third-Party Risk Management
Certa’s mission is to simplify the process of working with third parties globally, as every business relationship introduces new risks. Whether it’s data privacy, finance, climate, environmental, or regulatory risks, Certa aims to provide enterprises with the tools they need to manage and mitigate these risks effectively. The company was founded by Jag Lamba, a Wharton alumnus and former McKinsey consultant.
Lamba’s inspiration for Certa came from his own experiences dealing with procurement teams working with unvetted third parties. As organizations expand globally, they face diverse compliance requirements and increased security risks. Certa aims to address these challenges by offering a comprehensive platform that allows all third parties, including vendors, partners, and clients, to share data and internalize a company’s compliance rules and policies.
The Value of Certa’s Orchestration Engine
Certa’s core offering is an orchestration engine that brings together stakeholders involved in risk-exposed business processes onto a single platform. The platform provides risk scoring reports, templates, and modules, along with third-party validations and questionnaires to analyze risk and ensure regulatory compliance. It also integrates with various systems and allows users to create risk management reports for their organizations.
Recently, Certa launched an environmental, social, and governance (ESG) suite to help organizations meet supply chain-related ESG requirements. They have also introduced a no-code “studio” that enables users to personalize risk-exposed business processes through a user-friendly drag-and-drop interface.
Competition and Market Potential
While Certa faces competition from other compliance and risk management startups like Hyperproof, Cypago, and Kompliant, the company remains confident in its strategic approach and ability to navigate potential challenges. Research and Markets estimates that the global enterprise risk management market will be worth $6.38 billion by 2027, indicating significant growth opportunities for Certa in the years to come.
With a workforce of around 200 employees and 170,000 users, Certa is well-positioned to capitalize on the increasing demand for compliance and risk management solutions. The latest funding round will provide Certa with financial stability for several years, allowing them to further accelerate their business and deliver value to their customers.
