Feroot Raises $14M to Expand Privacy Compliance Platform

Toronto-based Feroot Security has closed a $14 million Series A funding round led by True Ventures, bringing the company’s total capital raised to $25 million as it capitalizes on surging demand for automated privacy compliance solutions. The November 19 announcement comes as organizations across industries face mounting regulatory pressure and escalating costs tied to data privacy violations.

The round included participation from Industry Ventures, Preface Ventures, Y Combinator, and all existing investors. Feroot reported 300% year-over-year revenue growth in the third quarter of 2025 and has doubled its headcount over the past 12 months as enterprise clients increasingly turn to AI-powered tools to manage complex compliance requirements.

The market dynamics driving Feroot’s growth are clear. Healthcare organizations have paid more than $50 million in settlements this year alone for misconfigured tracking pixels that leaked patient data. Advocate Aurora Health agreed to pay $12.25 million to settle claims affecting 2.5 million patients after Meta and Google tracking pixels transmitted protected health information without authorization. Adena Health System faces a $17.8 million proposed settlement over similar allegations involving marketing tools that captured patient portal interactions, appointment details, and medical information without proper consent mechanisms.

“We’re seeing healthcare organizations write eight-figure checks quarterly for compliance failures that automated monitoring could have prevented.”

Ivan Tsarynny, Chief Executive and co-founder of Feroot also said the following.

“Compliance requirements multiply faster than security teams can track manually, creating an urgent need for intelligent automation that can keep pace with regulatory change.”

Feroot’s platform uses artificial intelligence to continuously monitor websites and mobile applications across more than 50+ global privacy frameworks, including PCI DSS 4.0.1, HIPAA, GDPR, and CCPA. The system scans for vulnerabilities and configuration errors in real time, providing alerts and remediation guidance before violations occur. The company’s client roster includes Reddit, Xerox, Gusto, Forbes, and Newegg, spanning sectors from financial technology to healthcare and e-commerce.

Frederick Lee, chief information security officer at Reddit, described the platform’s value in addressing emerging threats. “We needed better visibility into client-side vulnerabilities that traditional security tools miss,” Lee said. “Feroot’s Inspector product gave us the capability to identify and address front-end risks before they became incidents.”

The investment thesis behind the Series A reflects broader shifts in the cybersecurity landscape. Puneet Agarwal, partner at True Ventures, pointed to structural market changes driving demand for client-side protection. “Compliance penalties have climbed into eight figures while regulatory frameworks multiply each quarter,” Agarwal said. “Traditional security infrastructure proves inadequate for preventing data exposure at the client-side layer where users actually interact with applications.”

The compliance management software market reached $52.85 billion in 2024 and is projected to grow to $102.51 billion by 2029, representing a compound annual growth rate of 14.1%, according to industry research. The client-side security segment specifically is expected to expand from $18.2 billion in 2024 to $47.5 billion by 2030 as organizations prioritize protection at the application layer.

North America represents the largest market for compliance management software, driven by stringent regulatory frameworks and concentrated technology spending. GDPR in Europe and CCPA in California impose substantial penalties on organizations that fail to protect consumer data, while governments worldwide continue introducing new privacy legislation and enforcement mechanisms.

Organizations are increasingly adopting AI and machine learning to identify compliance risks, monitor policy violations, and automate reporting workflows. The shift toward cloud-based compliance tools reflects demand for solutions that scale across distributed workforces and complex technology environments. Remote work policies and bring-your-own-device programs have expanded the attack surface, creating additional pressure for endpoint security that extends beyond traditional corporate perimeters.

Client-side attacks have proliferated as adversaries exploit JavaScript vulnerabilities, compromised third-party scripts, and misconfigured marketing pixels. These attack vectors bypass conventional perimeter defenses, requiring organizations to implement security controls where code executes in user browsers and mobile applications.

Beyond its technology platform, Feroot has established credibility through original research that has influenced both corporate risk management strategies and public policy. Tsarynny testified before Congress on data security vulnerabilities, while the company’s analysis of DeepSeek identified undisclosed data pipelines to China and drew coverage from Bloomberg, The Wall Street Journal, and The Guardian. The research contributed to legislative discussions on data privacy, including material that informed the House vote to ban TikTok.

With the fresh capital, Feroot plans to accelerate product development, expand its AI capabilities to handle emerging privacy frameworks, and scale its sales organization to pursue enterprise opportunities. The company will target growth in financial services and e-commerce sectors where regulatory scrutiny has intensified, while investing in features to address emerging compliance requirements around artificial intelligence data usage and consumer consent management.

“Every jurisdiction introduces new privacy requirements on an ongoing basis,” Tsarynny said. “Automation becomes essential when you’re monitoring compliance across 50 different frameworks simultaneously. This funding allows us to stay ahead of regulatory change while delivering the enterprise-grade capabilities our clients need.”

The competitive landscape includes established cybersecurity vendors such as Symantec, McAfee, Cisco, Trend Micro, and Palo Alto Networks in adjacent endpoint and network security markets, as well as specialized competitors in client-side protection including Probely, Relyance, and Next DLP. Feroot differentiates its offering through the depth of its automation capabilities and the breadth of its regulatory coverage.

As regulatory scrutiny intensifies and settlement amounts continue climbing, compliance software vendors are positioning their solutions as essential cost-avoidance tools rather than discretionary technology spending. The value proposition centers on preventing multimillion-dollar penalties and reputational damage that accompany high-profile data breaches and privacy violations.

The funding provides Feroot with runway to compete for enterprise contracts and expand internationally as privacy regulations proliferate across global markets. The company’s growth trajectory and investor backing reflect confidence in sustained demand for automated compliance tools as organizations struggle to manage increasing regulatory complexity with limited security resources.