Laika, a compliance startup based in New York, has raised $35 million in Series B funding to help businesses obtain security certifications in an easier manner.
The funding round was led by J.P Morgan Growth Equity Partners with participation from PayPal Ventures, Bain Capital Ventures, Canapi, Dashfund, Nyca, and ThirdPrime. The round brings the total funding raised by the startup to $48 million. Christopher Dawe, Managing Partner and Head of Growth Equity Partners, referred to the firm’s participation by stating:
“As a firm that works with thousands of vendors, J.P. Morgan has a deep appreciation for the complexities of the compliance function and we saw a huge opportunity for Laika to address the pain points in the industry. We are pleased to have led their Series B funding round and will bring the resources of the firm to help the business scale.”
Ever since its founding, Laika has been helping organizations comply with regulations by automating infosec workflows, audits, monitoring, and vendor due diligence in a more effective manner than traditional compliance solutions. Laika’s platform also provides customized assistance by including the assistance of compliance architects. Eva Pittas, Founder and COO at Laika, said about this approach:
“Meeting compliance requirements for regulators or enterprise customers can be a huge obstacle for startups with innovative products but small teams. By transforming compliance into a frictionless, subscription-based digital experience, Laika transforms compliance from a sales obstacle into a growth lever for front-line sales and business development teams.”
Laika has seen its annual recurring revenue increase by more than 4x year-over-year, with more than 50% of its user base choosing to upgrade to the premium tier. With compliance becoming an increasingly complex process across different industries, the startup is positioned to sustain this growth as demand for its solutions continues to rise.