Workstreet has received a strategic growth investment from Coalesce Capital to expand its artificial intelligence-powered cybersecurity and compliance services for companies operating in regulated industries. Financial terms of the transaction were not disclosed.
Workstreet’s founders and management team are investing alongside Coalesce and will continue leading the company through its next stage of growth.
The investment will support additional hiring, technology development and go-to-market expansion. Workstreet also plans to extend its services across new compliance frameworks and additional market opportunities.
Workstreet combines cybersecurity and compliance professionals with AI-powered tools to help companies build and operate security programs without assembling every capability internally.
Its services cover governance, risk and compliance requirements across more than 35 frameworks, including SOC, ISO, FedRAMP and the Cybersecurity Maturity Model Certification program.
SOC assessments evaluate controls related to areas such as security, availability, processing integrity, confidentiality and privacy. ISO standards provide internationally recognized frameworks for information security and other operational practices.
FedRAMP establishes security requirements for cloud products used by U.S. federal agencies, while CMMC measures how defense contractors protect sensitive government information.
Workstreet also offers virtual chief information security officer services, penetration testing, vulnerability management and privacy support.
A virtual CISO provides organizations with access to senior security leadership without requiring them to hire a full-time executive. Penetration testing involves authorized attempts to identify exploitable weaknesses in applications, networks or other systems.
The company currently works with more than 1,000 customers. Its target market includes high-growth enterprises that need to satisfy security and privacy requirements but may prefer to direct their internal resources toward product development and other core business priorities.
For companies in regulated industries, compliance can become more complicated as they expand into new markets, pursue government contracts, work with larger enterprise customers or process additional categories of sensitive data.
Workstreet is positioning its technology-enabled services model as an alternative to managing compliance through disconnected consultants, manual spreadsheets and separate software products.
The company said its AI capabilities help its experts deliver services more efficiently while adapting security and compliance programs to each customer’s business.
Coalesce Capital is a private equity firm focused on human capital-driven and technology-enabled services companies. It has more than $1.8 billion in regulatory assets under management.
The investment reflects Coalesce’s strategy of partnering with founder-led companies that use technology to address mission-critical operational requirements.
Coalesce believes Workstreet is positioned at the intersection of two expanding markets: the growing demand for cybersecurity and regulatory compliance, and the adoption of AI as a productivity tool for expert services.
AGC Partners served as financial advisor to Workstreet, while Nelson Mullins Riley & Scarborough served as its legal advisor. Latham & Watkins represented Coalesce Capital.
KEY QUOTES:
“We built Workstreet to take the burden of security and compliance off the plates of fast-growing companies so they can focus on their core business.”
“They share our conviction that the combination of expert people and modern AI-based technology is what sets us apart. This partnership gives us the capital and expertise to invest in our team and customers while we continue to build the company we founded.”
Romeen Sheth, Co-Founder and CEO of Workstreet
“The cybersecurity landscape is constantly evolving. Keeping pace with expanding compliance frameworks and security and privacy requirements demands significant internal resources that most growing companies would rather devote to their core business.”
“Workstreet has built a differentiated model that pairs deep domain expertise with AI to make compliance a driver of growth, rather than a cost of doing business.”
Stephanie Geveda, Founder and Managing Partner at Coalesce Capital
“Workstreet sits at the intersection of accelerating demand for security and compliance and the emergence of AI as a force multiplier for expert services.”
“We look forward to collaborating with Romeen and the rest of the management team to support Workstreet’s growth across new frameworks and market opportunities.”
Austin Heiman, Managing Director at Coalesce Capital
