Data residency compliance firm InCountry raises $15M
Data-residency-as-a-service company InCountry Inc. has raised yet more money, landing a $15 million round of funding just two months after launching from stealth mode.
InCountry, which sells software services that help companies adhere to rules requiring personal data to be stored in the country from which it originates, earlier picked up $7 million in a seed funding round that coincided with its launch in May.
The Series A round was led by Arbor Ventures of Singapore, Global Founders Capital of Berlin and Mubadala of Abu Dhabi, with participation from previous investors, including Caffeinated Capital, Felicis Ventures, Charles River Ventures and Team Builder Ventures.
Besides the money, InCountry said it’s launching its second product, called InCountry Border, which companies can use to manage regulated data while ensuring that information stays within a particular country’s borders. The new product will complement the firm’s original offering, InCountry Profile, which is used by companies to ensure they comply with local laws on how user profile and registration information should be stored and maintained.
InCountry said its products are designed to help enterprises deal with an emerging data compliance problem. In recent years, as concerns about personal data privacy continue to rise, dozens of countries are insisting that internet firms store data on their citizens within their national borders. That’s all well and good for the citizens concerned, but for all but the largest companies, it can be a major headache because they lack the know-how and infrastructure to do it.
The company claims that data residency laws are often so confusing, not to mention constantly changing, that as many as 74% of companies operating in the EU still don’t meet its data residency requirements as stipulated under the General Data Protection Regulation introduced last year.
And it’s not just the EU that insists on data being stored within its members’ borders. Other countries, including India and Russia, have recently introduced or are considering similar laws. These laws simply cannot be ignored, since the EU, for example, is threatening companies with fines of hundreds of thousands of dollars if they don’t comply.
“Companies are struggling to comply with GDPR, and as more laws are being written every week, it has lead to business-ending consequences for infractions,” Peter Yared, founder and chief executive officer of InCountry, said in a statement.
InCountry claimed that it has seen “overwhelming market demand” for its products since its launch. It said the new funds will be used to open regional offices in Abu Dhabi, Berlin and Singapore to fuel its expansion.
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