Market Overview

Andreessen Horowitz Leads $8.5 Million Investment in Very Good Security

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VGS is a modern approach to data security enabling companies to build
secure products without compromising safety or compliance

San Francisco-based data security firm Very Good Security (VGS)
announced today that it has raised $8.5 million via a Series A funding
round led by Andreessen Horowitz. The funding will allow VGS to further
scale its core security product, which lets companies collect, secure
and exchange sensitive data without the risk or liability associated
with storing it on their own systems. By reducing or eliminating data
security scope, VGS' customers can rapidly achieve compliance
certifications (e.g. PCI, SOC2, EI3PA, HIPAA) and accelerate their time
to market. NYCA, Vertex Ventures, Slow Ventures and Max Levchin also
participated in the round.

"Data security and compliance shouldn't hold companies back from getting
to market safely and quickly," Mahmoud Abdelkader, CEO and co-founder of
VGS, said. "This investment fuels our mission to securely power the
world's sensitive data and transform data security from a business
obstacle into a competitive advantage."

VGS is built on the premise that you can't hack what isn't there,
allowing companies to preserve the functionality of their sensitive data
without having to store that data on their own systems. VGS instead
collects and stores the sensitive data in its own highly secure vaults,
freeing customers from the costs and liability of building and
maintaining their own compliant security systems. When customer
applications require sensitive data, VGS identifies that data in transit
and swaps it—in real time—for surrogate values that retain the same
functionality of the original data.

Integrating VGS requires no changes to existing products or legacy
architecture, and the service starts working instantly. Because VGS
maintains multiple compliances and isolates customers from sensitive
data, it enables businesses to quickly achieve regulatory compliance.
Customers include Flutterwave, a payment technology provider for
pan-African commerce; Shift Payments, a card issuer that allows users to
spend both fiat and digital/cryptocurrencies anywhere major credit cards
are accepted; Deserve, an analytics-based financial technology company
that connects customers to fair credit products; and LendUp, a fintech
company providing loans and credit products as well as financial
education in pursuit of better financial health and empowerment for its
customers.

"We appreciate VGS' approach to compliance and security, as it aligns
well with our philosophy of protecting cardholder data," Venkat
Udayasankar, architect for LendUp Card Services, said. "Together, we've
been able to quickly craft a PCI Level 1 solution that fits our business
needs. VGS integrations were seamless, fast and easy, allowing us to
focus on LendUp's core business."

By removing the complex constraints posed by digital security and
compliance, VGS allows customers to scale rapidly without having to
worry about data breaches, regulatory issues, or service provider
security requirements that could significantly slow a company's growth.
This latest round of funding will allow VGS to scale its own operations
as it works to vastly simplify data security for a growing number of
companies.

"VGS ensures that businesses and services requiring identification
'keys'—e.g. credit card or Social Security numbers—for their customers
will not have to worry about compliance around the storing of
confidential or private data, and frees them from vendor lock-in," said
Alex Rampell, general partner at Andreessen Horowitz. "We are incredibly
excited to partner with Mahmoud and team to build a category-defining
enterprise platform."

About Very Good Security

Very Good Security (VGS) is a data security company providing a fast and
simple end-to-end security solution to companies that need to collect
and access sensitive data. By securing data collection, processing, and
storage as well as enabling rapid achievement of security compliance for
its customers, VGS helps companies grow quickly without being
constrained by digital security or compliance issues. Founded in 2016 by
Mahmoud Abdelkader and Marshall Jones, the company is headquartered in
San Francisco, Calif. and has raised $9.9 million in total funding to
date. For more information, visit www.verygoodsecurity.com/

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