- Enterprise-class distributed GRC and eDiscovery software leader X1 announced recently that it raised $5.1 million in Series B funding
X1 — a global leader in enterprise-class distributed GRC and eDiscovery software — announced recently that it raised $5.1 million in Series B funding led by Palisades Growth Capital. Sumeru Equity Partners managing director George Kadifa also participated in the funding. X1 is led by CEO Craig Carpenter and CTO Brent Botta — who are both veterans of highly successful eDiscovery, GRC and cybersecurity startups like Fortinet, Recommind, and Guidance Software.
With the Series B round of funding, X1 plans to hire aggressively in development and sales along with expanding its global channel network and brand to meet rapidly increasing demand.
“Helping clients find and take action on critical corporate information within hours – whether on laptops, desktops, corporate servers, in SaaS applications or in the cloud – is an incredibly powerful capability that the market is just now beginning to leverage,” said X1 CEO Craig Carpenter. “X1 has an incredible opportunity in front of it, which was the catalyst for this round of growth capital. We’re ecstatic to gain the support of great partners like Palisades Growth Capital and George Kadifa for our journey to come.”
The global enterprise governance, risk, and compliance (GRC) market is expected to hit $64.62 billion by 2025 while the eDiscovery market will hit $17.32 billion by 2023.
And X1’s unique distributed architecture — which allows compliance, cybersecurity, eDiscovery, forensics, and privacy teams to access employee data in-place in real-time, whether on laptops, servers, in SaaS applications or in the cloud — is transforming the eDiscovery and GRC markets. And with 600,000 users across 20,000 organizations, X1 is utilizing its large and global customer base to deliver next-generation data actionability thereby quickly and cost-effectively addressing Global 1000 firms’ most pressing data challenges.
“Businesses have been experiencing regulations like GDPR and the California CPA, CFIUS investigations, FCPA and civil/corruption proceedings, all involving digital evidence,” added Kadifa — who was also a former head of HP software. “This has created a massive impact on their operations that traditional solutions are unable to address. X1 is uniquely capable of delivering an incredibly efficient architecture and workflow that reduces timelines from weeks or months to hours. I am extremely bullish on X1’s present and future and look forward to seeing how far this talented team can take the company.”
The X1 team boasts strong backgrounds in cybersecurity, forensics, and eDiscovery. And the company has seen a refocused strategy under Carpenter.
Going forward, X1 plans to aggressively increase headcount and grow its global channel to meet skyrocketing demand. And the funding will be used to expand X1 Enterprise, a fully integrated software suite composed of X1 Distributed Discovery for eDiscovery and eDisclosure. Plus the funding will also be used for the governance, risk, compliance, and privacy platform X1 Distributed GRC along with social media and web collection platform X1 Social Discovery.
“X1 provides search and eDiscovery solutions across a diverse range of business uses and IT environments and delivers a tremendous user experience at the industry’s fastest speeds,” explained Anders Richardson of Palisades Growth Capital. “The X1 leadership team’s deep background in forensics and eDiscovery along with its market-leading X1 Enterprise Platform provides customers with the best solution for finding and collecting information and data.”