Very Good Security (VGS), a data privacy platform that helps financial and healthcare service providers and others protect their customers’ data, has raised $35 million in a series B round of funding led by Goldman Sachs’ merchant banking division, with participation from Andreessen Horowitz and Vertex Ventures, among other existing investors.
Founded out of San Francisco in 2016, VGS is built on the notion that most companies don’t actually want to store people’s private data.
They don’t want to keep social security numbers (SSNs) or bank card details on file — but they have to if they want to check up on customers’ credit history or collect money for a monthly subscription.
This is where VGS comes into play, providing a “developer-friendly” platform so businesses can offload sensitive data.
“For most companies, data is simply an input to achieve a business outcome, such as getting paid, underwriting a loan, or running a background check,” noted VGS cofounder and CEO Mahmoud Abdelkader.
“VGS provides specialized SaaS infrastructure to make it easy for developers and businesses to achieve their objectives while offloading the risk that comes with data custodianship.”