California-based Trustero is making a RegTech splash, announcing that it has exited stealth, raised $8 million in seed funding and achieved SOC2 type 1 certification for its newly available compliance-as-a-service platform.
Zetta Venture Partners led the round with participation from Engineering Capital and Vertex Ventures.
“As software industry veterans and entrepreneurs recognized for both innovation and expertise, we understand the challenges fast-growing companies face, including the investment in time and effort needed to maintain strong security and compliance postures,” Phillip Liu, CEO and founder of Palo Alto-based Trustero, said in a news release. “Trustero is designed and built to help businesses create trust amongst their customer and partner ecosystem.”
In addition to formally announcing its launch, the company, which was founded in 2020, also reported that its new platform has completed the System and Organization Controls (SOC2) type 1 audit, signaling that Trustero’s controls and processes meet AICPA’s trust service criteria. This certification is sought-after by RegTech companies, as it typically makes them more competitive in the marketplace.
“We’re pleased to have achieved the validation that SOC 2 Type 1 examination provides and the confidence it gives customers and prospects in our compliance as a service solution,” Liu said in a news release. “Taking this extra step demonstrates that we take stringent measures to ensure the safety and confidentiality of our customer’s data and underscores our commitment to continue to invest in our security controls.”
Trustero’s platform automates discovery, mapping and validity testing and offers integrations with some of the most popular SaaS applications, while AI provides remediation recommendations to fix non-compliance issues.
Investors expect the AI-powered platform to set Trustero apart from other RegTech providers.
“Compliance with proven best practices such as SOC 2 is both increasingly critical and daunting for many organizations,” In Sik Rhee, general partner at Vertex Ventures, said in a news release. “Trustero’s compliance as a service offering can help make it easier and faster to achieve and sustain compliance than more traditional approaches.”
The company’s leadership team includes many technology industry veterans, including Liu, who previously worked at HP, Facebook and SignalFix, and CTO Bo Adler, another Facebook veteran, who holds co-ownership of 20-plus patents.