There’s a predictive relationship between responsible privacy practices and security outcomes, according to Osano.
Companies with inadequate data privacy practices are 80 percent more likely to suffer a data breach than those with the highest-ranked privacy practices and will face fines seven times larger than companies with the best scores in the event of a data breach.
- Companies with the lowest privacy scores lost 600% more records than high-scoring companies.
- The worst privacy actors are the least likely to be able to retrospectively identify the root cause of a breach.
- Of the entities that get breached, governments have the worst scores.
- Educational and government websites are 15x more likely to experience a breach than commercial sites.
“In the face of nonstop breaches and increased data security awareness, consumer and shareholder confidence in businesses is slowly eroding. Businesses that fail to protect sensitive data will face serious negative consequences, and the report proves just how these phenomena move hand-in-hand.” said Osano CEO, Arlo Gilbert.
“There is a perception that privacy issues are akin to a speeding ticket – a risk worth running. Companies that don’t change their perception are facing higher odds of experiencing a data breach and losing the trust they’ve built with their customers.”
Third parties responsible for most data breaches
The average company shares its data with 730 different vendors, and according to the Internal Auditors Research Foundation, third parties were responsible for two out of every three data breaches.
Many companies are lagging behind current data privacy requirements. By prioritizing best-in-class privacy practices, companies can reduce the risk of security incidents and demonstrate trustworthiness to customers.
Osano, a company building the first platform for data privacy transparency, has announced it has closed a Series A funding round of $5.4M. The round is co-led by LiveOak Venture Partners and Next Coast Ventures, enabling Osano to further invest in R&D, marketing and new hires to meet the growing demand for its data privacy platform and tools.
With total funding to-date of $8.4M, Osano is a turnkey data privacy platform that automates the process of data governance by automatically monitoring every single vendor sharing your business data across all websites.
Compliance is built into its workflow to meet the complex requirements of government regulations, such as GDPR (now imposing heavy fines on organizations) and CCPA (legislation will go into effect on January 1, 2020).
Over 750,000 companies use Osano on 3.5 million websites, serving 2.5 billion cookie consent pop-ups per month. With more than 3,000 new accounts signed up in the eight weeks since Osano launched its commercial offering—ranging from small businesses to media outlets to Fortune 500s—the company is experiencing unusually rapid growth, making it an immediate leader in a data-privacy category starved for solutions.
Improving lives while building the leading data privacy platform
“We are proud to continue into the next round with our original investors,” said Osano Co-Founder and CEO Arlo Gilbert.
“Heading into 2020, we are moving quickly to add talent to our growing team and to deepen Osano’s position as a leading data privacy platform. There is a definitive need to bring transparency to the process of how companies deal with privacy, and we are very excited about taking on this challenge to empower both individuals and organizations.”
As a B-corporation, Osano is measured both by financial growth and the number of people whose lives benefit from improved data transparency. As part of its platform and suite of tools, a team of attorneys hand-reviews the data privacy practices of each third-party website vendor, ensuring care and accuracy for every single site. To date, the attorneys have spent a total of 12,000 hours reviewing more than 10,000 companies.
Investor thoughts on Osano Series A funding round
“Osano’s unique combination of flyaway product-market fit, human-centered design, social mission and innovative technology fits across a number of our investment mantras,” said Mike Smerklo, Co-Founder and Managing Director at Next Coast Ventures.
“Osano has an uncanny ability to identify trends before the rest of the world and attract the best talent to work on a solution.”
“From fake social media accounts to endless data theft, the Internet has become full of privacy and compliance hazards,” said Venu Shamapant, Founding Partner at LiveOak Venture Partners.
“As laws like CCPA become commonplace, companies are scrambling to keep up with their vast networks of vendors. Osano is the right solution at the right time, and we’re proud to help companies meet their obligations without fear or pain.”