The San Francisco-based security and compliance company has crossed $300 million in annual recurring revenue, Fortune exclusively learned. This milestone represents a tripling of ARR in two years. Vanta’s customer growth rate has also accelerated to roughly 60% year-over-year—a number that has gone up in each of the past four quarters, the company said. Sources with knowledge of Vanta’s balance sheet say that its net revenue retention (NRR) has similarly increased every quarter for the last 2 years and continues to be over 100 percent.  

Vanta now serves more than 16,000 customers, including Snowflake, Atlassian, Duolingo, Ramp, Cursor, and Harvey.

The company’s success stands firmly against the backdrop of its last public valuation in July 2025: $4.15 billion. At the time, Wellington Management led a $150 million Series D alongside Sequoia, Goldman Sachs Alternatives, J.P. Morgan, Craft Ventures, Y Combinator, Atlassian Ventures, and CrowdStrike Ventures. Vanta has raised more than $500 million since CEO Christina Cacioppo and engineer Erik Goldman founded the company out of Y Combinator in 2018. Cacioppo—who taught herself to code from books before writing Vanta’s first prototype—now oversees roughly 1,000 employees.

What’s pulling the curve up is a problem that didn’t exist at scale 24 months ago. Vanta’s own data, drawn from its third-party risk management product and released in a recent report, found that 70% of companies now have shadow AI—tools employees adopted without security review. The company also reported that LLMs are 52% more likely to be flagged as high risk than traditional SaaS. In a single year, the average company sees employees reinstall an AI tool 1,000 times after security has revoked it. The most-reinstalled offenders, per Vanta: Claude, ChatGPT, and Cursor.

“There’s this push-pull going on at an actually really broad scale,” Cacioppo told Fortune, describing executives demanding AI transformation while security teams scramble to assess what’s already on the network. The fix, she argues, is continuous monitoring.

“AI is exciting, but also scary and risky,” Cacioppo said. “It’s that combination of new, quickly growing AI hyperscalers with more risk and more scrutiny that is letting Vanta’s growth rate actually increase year over year.”

Now, the $65.2 billion governance, risk, and compliance field is watching a category leader extend its lead. As for the inevitable IPO question, Cacioppo demurred: “The goal is the long-term sustainable company versus the day of confetti.”

See you tomorrow,

Lily Mae Lazarus
X: @LilyMaeLazarus
Email: lily.lazarus@fortune.com
Submit a deal for the Term Sheet newsletter here.

Joey Abrams curated the deals section of today’s newsletter. Subscribe here.

VENTURE CAPITAL

- True Anomaly, a Centennial, Colo.-based developer of space technology, raised $650 million in Series D funding. Eclipse and Riot Ventures led the round and were joined by Paradigm,  Atreides, G Squared, The Private Shares Fund, VanEck, and others.

-  Golden Child, a Miami, Fla.-based dog food company, raised $37 million in funding from Atomic, A*, and Redpoint Ventures.

- Fence, a New York City-based developer of internet-native infrastructure for debt capital markets, raised $20 million in funding. Galaxy Ventures led the round and was joined by existing investors ParaFi Capital and Crane Venture Partners.

- Windmill, a New York City-based AI-powered performance review platform, raised $12 million in funding. Inspired Capital led the round and was joined by Primary Venture Partners, Founder Collective, and Oceans Ventures.

- Redpine, a Stockholm, Sweden-based knowledge layer for agentic AI, raised €6.8 million ($8 million) in seed funding. NordicNinja led the round and was joined by Luminar Ventures, node.vc, and angel investors.

- Dex, a London, U.K.-based AI talent agent, raised $5.3 million in seed funding. Notion Capital led the round and was joined by a16z Speedrun, Concept Ventures 2100, and angel investors.

- Betterness, a Miami, Fla.-based developer of autonomous AI agents for personalized wellness, raised $2.5 million in seed funding from Martin Varsavsky, Justin Stone, and others.

- Tapaya, a Prague, Czech Republic-based payments infrastructure startup, raised €1 million ($1.18 million) in pre-seed funding. Passion Capital and Depo Ventures led the round and were joined by BADideas.fund.

PRIVATE EQUITY

- Artemis acquired Optikos, a Wakefield, Mass.-based optical technologies company. Financial terms were not disclosed.

- ClearCourse, backed by Aquiline, acquired Kurve, a Newport, Wales-based developer of self-service kiosk technology. Financial terms were not disclosed. 

- Superior Health Partners, a portfolio company of Renovus Capital Partners, acquired Chant Healthcare, a Stigler, Okla.-based provider of home health, home care, and hospice services operating through Compassion Homecare and Sans Bois Hospice. Financial terms were not disclosed.

- Valor Exterior Partners, a portfolio company of Osceola Capital, acquired Associate Roofing, a Braintree, Mass.-based exterior home services company. Financial terms were not disclosed.

EXITS

- Acron Technologies acquired Sightline Intelligence, a Portland, Ore.-based video processing and AI-powered defense solutions company, from Artemis Capital Partners. Financial terms were not disclosed.

- Protective Life Corporation agreed to acquire Obsidian Insurance Holdings, a New York City-based property, casualty, and specialty insurance platform, from Genstar Capital. Financial terms were not disclosed.

PEOPLE

- InTandem Capital Partners, a New York City-based private equity firm, appointed Elliot Cooperstone CEO and managing partner, Brad Coppens president and managing partner, Chris Reef to partner, Aaron Newman as principal, Lauren Mangino to managing director, and Jackson Monnin to vice president.