Podcast Episode 64

Episode 064 29 min

Building a Billion-Dollar Security Company: Lessons from Drata’s Co-Founder and CTO

with Daniel Marashlian · Drata

0:00 / 29:00

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Episode 64 of The Security Podcast of Silicon Valley, published March 11, 2025 and recorded in November 2024. Hosts Jon McLachlan and Sasha Sinkevich, co-founders of YSecurity, talk with Daniel Marashlian, co-founder and chief technology officer of Drata, the compliance automation and trust management company he started in 2020 with Adam Markowitz and Troy Markowitz. Daniel explains why the first engineer at a startup is always its first security engineer, how a SOC 2 request at his previous company, Portfolium, pulled three of its six engineers off the roadmap, and what he learned watching Instructure, the makers of Canvas, run compliance by hand. He describes Drata's focus on continuous evidence collection to automate the messy middle of compliance, how Drata added generative AI on Amazon Bedrock, powered by Anthropic, with each customer's data isolated first, and his plan to help enterprises shrink 70-person compliance teams. He also talks about leading 550 people with 100 five-minute problems a day, product-led tools like GitHub against the partnership the enterprise needs, launching Drata the day after it earned its own SOC 2 Type 1 report, the $100 million Series B at a $1 billion valuation 10 months after launch, the hardest part of signing a big term sheet, growing up in Sedona, Arizona, where Winamp was built, and two tools he wishes someone would build.

Episode notes

What happens when a seasoned entrepreneur tackles one of the biggest security challenges for startups? Daniel Marashlian, Co-Founder and CTO of Drata, built a billion-dollar company by automating security audits. In this episode, he breaks down compliance headaches, AI’s role in security, and why automation is the future.

Hosted by Jon McLachlan and Sasha Sinkevich — co-founders of YSecurity.

The deep dive

The messy middle of compliance

Daniel Marashlian has been the first engineer, and so the first security engineer, at every company he co-founded. At Portfolium a SOC 2 request pulled half his engineers off the roadmap, and Drata was his answer. Here is our November 2024 conversation with the public record beside it: continuous evidence collection, AI on isolated customer data, the 70-person compliance teams he wants to shrink, a launch with Drata's own SOC 2 report in hand, and the change impact tool he calls a trillion-dollar idea.

Daniel Marashlian has a name for the part of compliance nobody enjoys, and he built a company to make it go away.

“That messy middle is kind of boring and gross and mundane. And that’s what we’re trying to automate, is that continuous collection of data.”

Daniel Marashlian, at 5:47

Listen · Daniel on episode 64, from 5:58
About 29 seconds: the meetings, the screenshots, the structure that's actually fun, and the messy middle in between. The clip stops on its own. Read the full transcript.

Daniel is the co-founder and chief technology officer of Drata, the compliance automation company he started in June 2020 with Adam Markowitz and Troy Markowitz (LinkedIn, Drata). Drata’s own page now counts more than 8,000 customers, more than 30 frameworks and 15.7 million evidence items processed every day, and it calls the company the trust layer between great companies (Drata). Before Drata he was co-founder and chief technology officer of Portfolium, a LinkedIn for college students that Instructure, the company behind Canvas, bought in 2019. Drata’s author page lists the ventures before that, including RapidEngage, TweetPhoto and Pelotonics, and more than 20 years across product and engineering (Drata). He went to the University of Arizona, grew up in Sedona, and lives in San Diego.

Sasha and I recorded this in November 2024, a little under four years after Drata’s launch, and it aired on March 11, 2025. Where we sit, so you can weigh what follows: YSecurity runs SOC 2 programs for startups, and we set up the compliance platform with our clients, Drata among them, so we see this market from the customer’s side of the screen. Daniel’s numbers are labeled as his, and the public record sits beside them. I opened by telling him the honest version of how Drata looked from where I stood.

“I felt like it just sort of showed up out of nowhere, was a really nice, viable alternative to that other platform.”

Jon McLachlan, at 0:24

“Yeah, it does kind of seem like we came out of nowhere,” he said, and then he told us where it actually came from.

The first engineer is the security engineer

I asked whether he thinks of himself as a security person. His answer is the one most startup founders would give if they were honest, and it’s why so many of them end up running a security program they never planned to own.

“But you always had, as the first engineer, I had to be the security engineer. Not only from the engineering AppSec side, but, you know, IT, you know, networking, firewalls, all that fun, goody stuff, offense, defense.”

Daniel Marashlian, at 0:58

Listen · Daniel on episode 64, from 1:22
About 15 seconds: the first engineer, the security engineer, and everything from AppSec to the firewall. Read the full transcript.

He has lost count of the companies, he said, though Drata is “my eighth from my last count that I did,” and some of the others “we started and shut down in three, six months.” His LinkedIn fills in the shape. He started as a web and database developer at Rio Salado College in Tempe, Arizona, working on the college’s learning management system, then led backend work at Epic Cycle Interactive, including ncaa.com through the 2008 tournament. He co-founded Pelotonics, where his profile says he was the first person to wrap corporate security around Google Docs, then ran engineering at TweetPhoto, renamed Plixi, a photo API his profile puts at 150 million requests a day before Lockerz bought it. RapidEngage and Portfolium came next, both as co-founder and chief technology officer, then Instructure, then Drata (LinkedIn). In a January 2026 post he was still counting, inviting people to a talk about “the 8-crazy companies I’ve started” (LinkedIn).

A timeline of nine roles. 2005 to 2007, Rio Salado College, web and database developer on the college's learning management system in Tempe, Arizona. 2007 to 2008, Epic Cycle Interactive, backend technical lead, including ncaa.com through the March 2008 tournament. 2008 to 2012, Pelotonics, co-founder and chief technology officer, wrapping corporate security around Google Docs. 2009 to 2011, TweetPhoto, then Plixi, chief technology officer of a photo API taking 150 million requests a day, until Lockerz bought it. 2011 to 2013, Lockerz, director of engineering. 2013 to 2014, RapidEngage, co-founder and chief technology officer, later bought by QuestionPro. 2014 to 2019, Portfolium, co-founder and chief technology officer of LinkedIn for college students, bought by Instructure. 2019 to 2020, Instructure, senior director of engineering at the makers of Canvas. 2020 to now, filled, Drata, co-founder and chief technology officer.
Nine roles, and the security work that came with being first. Source: Daniel's LinkedIn.

As each company grew, the security work went to a specialist, “obviously, always pass it down to the experts,” and he calls Drata’s security team “one of my favorite teams at Drata to work with.” So, a career in cyber? “In terms of a career in cyber, the answer is no, right?” His 20 years were in B2B, social networking and education, and this time around he started a cybersecurity company. I asked the obvious question.

“Yeah, why? Well, you got to be a little crazy to get into this security space, right?”

Jon McLachlan, at 2:29

We wrote a whole post about the arrangement he described, the founder or first engineer as the security team until the company can afford a real one, in In-House, On-Demand, or YOLO?. The short version is that it’s the right call early, and the bill comes due on a buyer’s schedule, which is exactly what happened next.

Let me see your SOC 2 report

The company before Drata was Portfolium, and he described it in one line: “Think of LinkedIn for college kids is the easiest way to think about it.” It ran seven years, raised what he remembered as “like 8 million, somewhere around there,” and sold to Instructure, the makers of Canvas. His LinkedIn has him at Portfolium from May 2014 and at Instructure from February 2019, leading Portfolium’s engineering after the acquisition (LinkedIn).

Portfolium started bottom-up, like a social network, and found its revenue top-down, selling to universities. That’s where the security question arrived, every time.

“And the more and more we got to selling to universities, like almost every time the CIO or someone like that would come in and it’d be like, this looks great. Love what you guys are doing. How are you going to protect our student data? And it kept coming back to the extremely long security questionnaires or, let me see your SOC 2 report.”

Daniel Marashlian, at 2:35

His first reaction will sound familiar to anyone who has built on a cloud provider: “And even a decade ago, it was like, well, SOC 2, what? Like, we’re on AWS. Don’t worry about it. Let’s go.” Then it stopped being theoretical: “Like, we’re starting to block deal flow.” And then came the cost, which he measured in engineers.

“you don’t know what you don’t know. Hire a consultant, rip engineers off the roadmap, go through the whole gamut. And for a small startup, I think we had six engineers at that startup, ripping three engineers off to help go get a SOC 2 report is no joke. It’s a big decision.”

Daniel Marashlian, at 2:35

Listen · Daniel on episode 64, from 3:59
About 17 seconds: a consultant, the whole gamut, and three of six engineers off the roadmap. Read the full transcript.
Four boxes joined by arrows. The CIO, asking how you will protect student data. The ask, a security questionnaire or a SOC 2 report. Filled, the cost, three of six engineers. Dashed, the deal, waiting on the report. Below: selling top-down to universities, almost every chief information officer asked how the startup would protect student data, then for a long security questionnaire or a SOC 2 report. With six engineers, pulling three off the roadmap to get the report was a big decision, half the engineering team. Daniel calls it starting to block deal flow.
Half the engineering team, for one report. Source: the tape at 2:35.

Three of six is half the engineering team for a document, and it’s the number I’d put in front of any founder who thinks SOC 2 is a sales problem. If the request is new to you, What Even Is a SOC 2? covers what the report is and the SOC 2 readiness checklist covers where to start.

The good news is in Drata’s own numbers, from a report Daniel wrote up in August 2026. Roughly 70 percent of Drata customers have SOC 2, which he is careful to say describes Drata’s base and not the whole market, and the data cut against the assumption that small teams are at a disadvantage: smaller teams reached strong readiness and finished more often than large ones. “Starting small does not put your program behind,” the post says. It also draws the line I wish every founder knew on day one, that readiness isn’t a report, because a SOC 2 Type 2 needs an observation period of roughly six to twelve months after the controls are in place (Drata).

Spreadsheets, screenshots, tickets, meetings

The surprise in the Portfolium story is what came after the acquisition. Working with Instructure’s security team, “I was extremely excited about compliance,” he said, because he’d watched his sales team fight through procurement and wanted to know how a big company did it. The answer was the same way he had, just bigger.

“It was like the same way that I was doing it: spreadsheets, screenshots, [Jira] tickets, meetings, but not of like a 40-person company, like a 1,400-person company.”

Daniel Marashlian, at 2:35

“So you could think about those very large entities and they’re just doing it by hand with just humans,” he went on, and that was the moment: “I think we need to automate this for the industry.” I said what I’d felt listening to it, “You felt that pain,” and he had.

Drata tells the same origin story on its own page. Adam Markowitz worked as an aerospace engineer on NASA’s Space Shuttle Program, where systems only move forward when every part is documented and verified, and at Portfolium the three co-founders ran into audit readiness that meant chasing evidence across tools and teams, so in 2020 they launched Drata (Drata). Five years later Daniel put the before picture in almost the same words he used with us.

Five years ago, we saw how fragmented and manual the foundations of trust were. Spreadsheets for risk, screenshots for audits, questionnaires answered over and over again. As companies scaled and adopted AI, that approach simply couldn’t hold.

That demand fueled meaningful growth for Drata this year:
⚡️60% year-over-year revenue growth
⚡️Quadrupled year-over-year growth in new enterprise revenue
⚡️8,000+ customers in 80+ countries, including Fortune 100 leaders and a third of the Cloud 100
⚡️190% year-over-year enterprise customer growth
⚡️400+ new features launched, many leveraging AI to surface risk and streamline assurance

Daniel Marashlian · February 17, 2026
Five years in, the same list he gave us: spreadsheets, screenshots, questionnaires. The post also announced Drata's new San Francisco headquarters. View on LinkedIn.

The messy middle

Sasha asked the question every automation company has to answer first, “When we start talking about automation, where do you begin automating?” Daniel’s answer was specific: “there’s a big emphasis, which is continuous evidence collection for controls, security controls.” Then he drew the line between the work that matters and the work that doesn’t.

“I don’t think anyone’s excited about having meetings, collecting screenshots, and like getting evidence of how I effectively operate a security control in my business. That’s not the fun part. The cool part is setting up structure for your business to run secure, you know, a well-oiled machine.”

Daniel Marashlian, at 5:47

The structure is the program: the controls, the owners, the reasons. The artifact at the end is the report you use “to build trust.” Everything between them is the messy middle, and it’s the part that eats the engineers.

Three boxes joined by arrows. Structure, controls that run secure. Filled, the messy middle, screenshots and meetings. The artifact, a report that earns trust. Below, two bars for the hours a year it takes to maintain a SOC 2 report, by Drata's estimate: about 500 by hand, and about 50, an hour a week, with continuous evidence collection. Then two notes: the parts nobody is excited about, in Daniel's words, are meetings, collecting screenshots and getting evidence of how a control operates. And Drata started in 2021 as SOC 2 automation built around continuous evidence collection, then grew into the rest of governance, risk and compliance.
Automate the middle, keep the ends. Sources: the tape at 5:47 and 27:18, and Drata's August 2025 post.

He put a number on it at the end of the episode: “On average, it takes roughly 500 hours to maintain your SOC 2 report. We get that down to about 50 hours, right? Roughly an hour a week.” That’s Drata’s claim for its own product, and Daniel repeated it in an August 2025 post, as 500 hours a year down to under an hour a week (Drata). By August 2026 the advice had shrunk to two short lines: “Integrations over screenshots. Continuous monitoring over point-in-time scrambles.” (Drata).

We’d add one thing from the auditor’s chair. Continuous collection only helps if the test checks what the control actually does. Our post Enabled Isn’t Enforced is about the gap between a setting that’s on and a control that’s enforced, and the calculator further down turns Daniel’s 500 and 50 hours into dollars for your team.

Isolating and indexing and sharding the data

Sasha’s next question was the one everyone was asking in 2024: “How do you guys take advantage of the AI or Gen AI technology as a whole?” Daniel’s answer started with the part most AI announcements skip, the plumbing.

“We stayed with our AWS partner in using Bedrock and that technology downstream, which is powered by Anthropic, and like isolating and indexing and sharding the data appropriately. So we took a lot of time in the data pipelining and just the hard engineering part.”

Daniel Marashlian, at 6:45

Listen · Daniel on episode 64, from 6:49
About 15 seconds: Bedrock, Anthropic, and each customer's data kept apart before any feature shipped. Read the full transcript.

Only once that was done did the product teams get the question “what do you want to do with this?” The first six to nine months went to infrastructure, he said, then about three quarters of adding generative AI to workflows “from an hour to 10 hours” of a person’s time, with a goal: “It’s like, how do we use generative AI to reduce that by 90%?”

The record backs the order he described. Amazon Bedrock, the AWS service that offers foundation models from several AI companies through one API, launched in 2023 (Wikipedia). In March 2024 Drata published its AI philosophy, written by Lior Solomon, its vice president of engineering for data, naming Anthropic’s Claude among the Bedrock models and describing models and datasets segregated by tenant to “eliminate the risk of cross-contamination between different customers’ data” (Drata). In June 2024 Drata showed AI questionnaire automation live to more than 600 GRC, IT and security professionals at its Drataverse conference (Drata), and by July 2025 that tool had processed more than a million questions and answered 85 percent of them (Drata).

In August 2025 Daniel wrote the whole sequence up as four stages. The first was trust, built before a single AI feature launched, starting with “Isolated indexes per customer to eliminate data leakage risk.” The second was compressing hours into minutes with summaries of vendor SOC 2 reports and help with security questionnaires. The third and fourth were the roadmap at the time, a co-pilot that answers inside Slack and then governance that agents check before they act, with people kept in the loop (Drata).

Four stage boxes joined by arrows, from Daniel's August 2025 post. Filled, stage 1, trust, isolated indexes. Stage 2, hours to minutes, for reports and questionnaires. Dashed, stage 3, on demand, a co-pilot in Slack. Dashed, stage 4, autonomy, where agents ask first. Below: on the tape, Amazon Bedrock, powered by Anthropic, with each customer's data isolated, indexed and sharded, and the first six to nine months spent on that infrastructure. Then about three quarters of adding generative AI to workflows that take a person an hour to 10 hours, with a target of cutting them by 90 percent. Stages 3 and 4 were the roadmap in August 2025.
Trust first, features second. Sources: the tape at 6:45, Drata's March 2024 AI philosophy and Daniel's August 2025 post.

The question to take from this into your own vendor reviews is the one Daniel answered before anyone asked: where does my data go when your AI reads it, and what keeps it apart from every other customer’s? If a vendor can’t answer in writing, the AI data bill of materials is a good place to start the conversation.

Go disrupt ourselves

The part of the AI answer I liked best wasn’t about a feature. It was about staying hungry at 550 people.

“if we don’t continue to innovate, someone else will. And we don’t want that to happen to us. So we even have like a little team inside Drata of like, go disrupt ourselves, right? Using AI and make sure that we’re on the cutting edge of that.”

Daniel Marashlian, at 6:45

Sasha connected it to a conversation we keep having with growing companies, “Yeah, and this is quite a common topic of how do we ensure that we don’t slow down as a company.” Drata’s moves around the tape show the habit. In May 2024 it bought oak9 and launched Compliance as Code, checking compliance while code is written as well as after it ships (Drata). Three months after the recording it agreed to buy SafeBase, the trust center company, which we come back to after the tape.

A hundred five-minute problems

I asked what a typical day looks like for him. Some days are podcasts, “CISO dinners and fun marketing field stuff,” and the technical days have a shape he has a phrase for.

“you know what I always say? 100 five-minute problems every day. A lot of times, that is one of my days. It’s, and that’s fine. It’s not really, it’s not a complaint.”

Daniel Marashlian, at 8:12

The math behind it is the team. Drata had “about 550, about 250-ish, somewhere in there on technology,” his estimate in November 2024, and if he can help each of them “move even, you know, 20 minutes faster, that’s awesome.” So the day is code reviews, architecture reviews and anything blocking someone, and some weeks it’s the opposite altitude. The week before we recorded, he had pulled every technology leader, director and up, into a three-day 2025 planning session.

“I always call it like changing elevation. Like, you need to be able to fly at 30,000 feet, operate and lead the business and think forward.”

Daniel Marashlian, at 8:12

And if there’s an incident, “literally, next moment, be able to drop down to the ground floor with the troops.”

Two stacked boxes with arrows going down and up between them. 30,000 feet, lead the business and plan the year. Filled, the ground floor, code reviews and incidents. Beside them, three numbers from the tape: 550 people at Drata, about 250 of them in technology. 100 five-minute problems a day, in his words. 20 minutes saved for each person he unblocks. Below: up high, a three-day 2025 planning session with every director and above in technology and product. On the ground, code reviews, architecture reviews and incidents, the next moment, and every leader on his team technical enough to jump into the code.
Both altitudes, the same day. Source: the tape at 8:12, with headcount as Daniel estimated it in November 2024.

“I love that,” I told him. “I love also that you still get your hands dirty here and there and pay attention to where the rubber hits the road.”

Everyone is super technical

It’s a rule he hires by, not just a habit.

“So everyone from me to directors to managers to ICs, like, everyone is super technical. Obviously, we have our respective roles and pie charts of duties, but, uh, when it comes time, we all can jump into the code.”

Daniel Marashlian, at 9:59

I asked what he thinks is the most important quality in a leader. “I think just have respect for the people you’re leading and know their craft.” Earn their trust by relating to their pains, their wins and their craft, he said, and “you can build trust with them for them to follow you forever.” His example was his head architect, someone he has worked with for almost 20 years and built four-plus companies with, where the trust runs both ways: the architect trusts Daniel to keep the business paying, and Daniel has his back on what they build, and “there are many more like that at Drata that I’ve worked with time and time again.”

For a security program, this is the quiet advantage of technical leadership. A leader who can read the pull request can tell a real fix from a checkbox, and the engineers know it.

Guide the machine

I asked where Drata goes next. His answer was the enterprise, and the picture he painted will be familiar to anyone who has sat in a public company’s compliance department.

“And how do you disrupt that legacy thinking of GRC and needing to hire a 70-person security compliance team to maintain all these certs because I’m a public company and I have to do SOX and I have to do SOC 2 and I have to do GDPR and all this other fun stuff, and therefore I need to hire humans to do it all?”

Daniel Marashlian, at 11:38

“There still are humans that are involved,” he said, “but instead of having a 70-person team, maybe you have a 20-person team. I don’t know, whatever it may be.” Both numbers are his illustration, and the shape of the idea is the point: “kind of being there to, like, guide the machine versus having the program and the process guide you.” SOX here is the Sarbanes–Oxley Act of 2002, the U.S. law behind public companies’ financial controls (Wikipedia). I told him what I liked about the answer.

“I love that you’re falling in love with the problem instead of like the answer to that question.”

Jon McLachlan, at 12:39

Sasha pushed on the hard part. “As we know, especially in larger organizations, it’s pretty hard to come in with a new process. It needs to be obvious to people who follow the process why they should follow something new.” Daniel agreed and split the room in two. The innovative CISOs and GRC leaders want it, “even if it’s not about reducing staff,” so highly skilled engineers can work on securing the business instead of the messy middle. The practitioners on the floor are a different conversation.

“Like, they think we’re going to displace them, or they think it’s not trustworthy, or they think it’s, you know, just a different way. So I think it’s brand, it’s communication, it’s collaboration and partnership versus just, here’s a tool, go use it.”

Daniel Marashlian, at 13:08

Two bars. A public company's compliance team in Daniel's example, 70 people. The same program automated, his guess, 20 people. Below, four boxes: brand, communication, collaboration and, filled, partnership. Then three notes. Who wants it: the innovative chief information security officers and GRC leaders, so skilled engineers can work on securing the business. Who resists: the practitioners on the floor, who worry about being displaced, about trust, or about a different way. What wins them, in his words: brand, communication, collaboration and partnership, instead of just handing over a tool.
Two team sizes, four ways to win the people in between. Source: the tape at 11:38 and 13:08. Both team sizes are Daniel's illustration.

Drata’s next two years were the enterprise bet paying out. By February 2026 it reported 190 percent year-over-year growth in enterprise customers, what it called quadrupled year-over-year growth in new enterprise revenue, and customers that include Fortune 100 companies and a third of the Cloud 100 (LinkedIn). His ASPs, average selling prices, were already rising when we talked, he said, “It’s been great to see our ASPs increase and all that fun, fun stuff.”

Here’s a tool, go use it

To explain why the enterprise needs partnership, he used the opposite case, a tool that never needed a salesperson.

“I think, you know, I’m the biggest fan of GitHub, and I love it as a developer.”

Daniel Marashlian, at 13:08

Drata now has “probably 200-ish-plus people that contribute to code on GitHub,” and he signed up when the company started without ever talking to anyone there. “But you weren’t, like, disrupting how I did code,” he added. The disruption had happened years earlier, from CVS to Subversion to Git, and he was on the side pushing it: “I used Subversion, but it was like, I was the one fighting the team to go to Git very early on.”

A timeline of six entries. July 1986, CVS, the Concurrent Versions System, written by Dick Grune on top of the older RCS. October 2000, Subversion, the popular choice when Daniel started out, and the one he used. Filled, April 2005, Git, created by Linus Torvalds for the Linux kernel, and Daniel fought his team to switch early. Filled, February 2008, GitHub is founded, and Drata later signed up without talking to anyone there. Dashed, later, the cloud computing wave, his best example of a technology that changed how people work. Dashed, now, AI, his most modern example. In every wave, he says, the tool alone is not enough.
The tools that spread on their own. Sources: Wikipedia, and the tape at 13:08.
The version control fight Daniel was on the winning side of. Linus Torvalds at Google in May 2007, about 70 minutes on git, which he had created two years earlier. Watch on YouTube.

His point was that a tool like Git can spread by itself among developers, and a change to how a whole compliance department works can’t. “no matter what disruption of technology, the cloud, you know, the cloud computing wave is probably the best example. Maybe the most modern example is AI,” he said, and in every one of them “I don’t think it’s just like, here’s the technology, use it.” What wins, in his telling, is customer obsession after the sale, implementation, support and customer success, with “customers are the center of the business.” His model was AWS: “I can talk to so many people at AWS for free to help me, like, figure something out.” They don’t charge, he said, “because they know the more you’re successful on AWS, the more you’ll spend on the services.”

Customer experience is critical

Sasha took that one step further, to who owns the customer.

“And I know some organizations shy away from creating a dedicated UI UX team or, I should say, customer success teams, because the idea is that everyone who is building the product should be that team member of the customer experience. You have to understand what the pain point is.”

Sasha Sinkevich, at 16:36

It’s the same principle we apply to security programs: the engineers who build the product should understand the buyer’s security review, because they’re the ones who can make the next answer true.

A seven-year-old startup on day one

I asked for his best day at Drata, and he started with launch day, “just because of this immense hard work.” They had launched in the middle of COVID, after incorporating, by his memory, around July 6, 2020. What made the first months unusual was who was in the room.

“So it was like, from day one, it was this, you know, 10 or whatever person team that we had, this, like, seven-year-old startup on day one. It was a, it was a cheat code that we had.”

Daniel Marashlian, at 17:10

Three co-founders who had built Portfolium together, a group of founding engineers, a couple of founding salespeople and a customer success lead, working “just grueling, like literally 16, 18 hours a day of coding.” Drata’s own count of that team, from its second anniversary post, is “With just 15 of us and a handful of amazing beta customers” (Drata).

Drata tells its own founding story in about two minutes, posted to its YouTube channel in April 2026. Watch on YouTube.

The lesson I’d pull out for founders is the one Andrew Rubin of Illumio gave us from the other direction on episode 88, where the overnight success took a decade. Drata’s clock looked fast because the waiting had already happened at Portfolium, with the same people, and the problem was one they had lived as customers.

Our own SOC 2 report, the day before launch

The detail in the launch story that I love most is the order of operations.

“We used our own tool to get our own SOC 2 report. And the day I remember when we got it, we got our own SOC 2 report, Type 1, because it was like the first one, on January 14th of 2021. We launched on January 15th, the next day. We wanted to have it and prove to the world that you can use Drata for what we’re selling.”

Daniel Marashlian, at 17:10

Listen · Daniel on episode 64, from 18:00
About 19 seconds: Drata's own SOC 2 Type 1 on January 14, 2021, and the launch the next day. Read the full transcript.

Drata’s January 2023 post tells it the same way. The team wanted to “drink our own champagne,” as Adam Markowitz put it, so it delayed the launch to January 2021 until it had a clean SOC 2 report in hand, earned with its own product (Drata). Daniel calls it “a really proud moment,” and it’s also a lesson in which report to get first. A Type 1 shows your controls are designed well at one point in time, which is exactly what a company on its first day can prove. A Type 2 shows they worked over months, and the clock for that starts once the controls exist. We wrote up the difference in SOC 2 Type 1 vs Type 2.

It turned into a habit. In June 2026, launching a product to govern AI agents, Daniel wrote that Drata was “customer 0” again, with thousands of its own agents to watch.

We're customer 0 here at Drata - and even within our own "walls" we have multi-thousands of agents across Glean, Drata (our software), Anthropic, and a few other places. Our internal use of Drata's AI Agent Governance has already been super helpful for our IT & Security teams to better govern, monitor, alert, and remediate findings our own use of Agents at Drata as our use of AI continues to increase to build and innovate at scale.

Daniel Marashlian · June 10, 2026
The first customer, again. The post reshares Drata's announcement that day, which named AI agent governance a new security category. View on LinkedIn.

Ten months to a billion

His second best day was a funding round, and he was clear which one.

“the one that really stands out was our B round, the $100 million round we raised at a billion-dollar valuation. And that was 10 months into the business of launching the company.”

Daniel Marashlian, at 17:10

Listen · Daniel on episode 64, from 18:28
About 17 seconds: the Series B, 10 months after launch, and where he thinks it ranks. Read the full transcript.

“From everything I’ve found online, I think we were the 10th fastest in the world to ever do that,” he said, and that ranking is his. Drata’s own announcement, on November 8, 2021, said the $100 million Series B, led by ICONIQ Growth with Alkeon Capital and Salesforce Ventures, made it “one of the fastest SaaS companies ever to reach $1 billion valuation.” The same post counted “more than 70 employees,” so the team was a little bigger than the “like 40 or so people” he remembered, and it was still tiny for a unicorn (Drata). The Series A, $25 million led by GGV Capital, had come that June (Drata), and in December 2022 a $200 million Series C co-led by ICONIQ Growth and GGV Capital doubled the valuation “in little over a year” (Drata).

A timeline of seven entries. Dashed, July 2020, Drata is incorporated, around July 6 by Daniel's memory, with three co-founders who had built Portfolium together. Dashed, January 14, 2021, its own SOC 2 Type 1 report, earned with its own product, by his account. Filled, January 2021, launch out of stealth with about 15 people and a handful of beta customers, by Drata's count. June 2021, a 25 million dollar Series A led by GGV Capital. Filled, November 2021, a 100 million dollar Series B at a 1 billion dollar valuation, led by ICONIQ Growth, 10 months after launch, with more than 70 employees. December 2022, a 200 million dollar Series C co-led by ICONIQ Growth and GGV Capital, doubling the valuation. January 2023, two years in, thousands of customers and more than 300 employees.
The first two years, by Drata's own posts and Daniel's memory. Sources: Drata's blog and the tape at 17:10.

His third day was an award, a Tech 50 list in its inaugural year that put Drata on the Nasdaq floor and its founders’ faces on the Nasdaq tower in Times Square, “a big surreal moment where me and Adam, my CEO, were, our faces on the middle of Times Square.” The tape doesn’t make the list’s name clear, so here it stays his story. Times Square came back, though. In June 2026 Drata’s AI agent governance launch went up on the same kind of screen, and Daniel thanked Nasdaq for it.

You can't govern what you can't see!

Drata's AI Agent Governance opens your eyes to your enterprise's Agent surface and allows you to govern, visualize, take action, and prevent!

Thank you Nasdaq for your continued support ❤️

Daniel Marashlian · June 14, 2026
Back on a screen in Times Square. The post reshares Drata's own, which says Nasdaq celebrated the launch with them. View on LinkedIn.

Signing the term sheet

Then I asked for the hardest day, and the answer surprised me.

“Sometimes one of the most challenging days was actually signing the term sheet of those big rounds.”

Daniel Marashlian, at 19:53

As a serial entrepreneur, he said, an exit has real value for him, his family and his coworkers’ families, and every big round shrinks the list of companies that could buy you. “So it’s like, okay, we’re going to go take this billion-dollar round. All of those three, four, $500 million acquisitions are out of the door.” He was candid that he likes where it led, “I love where we’re at and where we’re going, and, like, that we’re marching towards an IPO, but, like, those options were gone.” For a founder reading this with a term sheet on the desk, it’s the most useful sentence in the episode: a higher valuation is also a decision about which endings are still possible.

A mark of success

On the technical side, the hard days are incidents, and he talked about them without flinching.

“I would say on the technical side, probably, you know, there’s incidents that happen just like at any shop, and you get through those. It’s almost a mark of success, you know.”

Daniel Marashlian, at 19:53

“Yeah, it happens,” I said, and he went on to the part he finds rewarding: “you see the people that step up, and you see the people that truly are experts at their craft, but also have care for their customers and their business.” That’s the culture side of incident response. The engineering side, making sure the next incident reaches as little as possible, is what Once They’re In is about.

Winamp was out of Sedona

I asked what he’d tell a younger Daniel. Stick with sports, he said. He’s a big tennis player who came to it at about 16, though his mother had put him in lessons at six, and he’d tell himself to stick with that and with a team sport, because “it’s all about the team and the people that build the product.” Sasha asked where he grew up.

“In Sedona, Arizona, a little tourist town. When MP3s first came out, the world’s largest MP3 player was called Winamp.”

Daniel Marashlian, at 22:18

“Oh, I used to use Winamp,” I said. The record backs his hometown claim. Nullsoft, the company behind Winamp, was founded in Sedona in 1997 by Justin Frankel, Winamp was written by Frankel and Dmitry Boldyrev, and AOL bought Nullsoft in 1999 for $80 million (Wikipedia, Wikipedia). For a geeky kid, seeing that “something like that could be built from that small town” mattered, and he remembered Sedona as “like 8,000 people.” The 2020 census counted 9,684 (Wikipedia), which makes his point better: it’s a very small town to produce two of these stories.

“So now I feel like with Drata, I think we beat that number to have the biggest tech success out of Sedona.”

Daniel Marashlian, at 22:34

These days tennis is how he switches off, “the rest of the world melts away,” along with friends, family and the beach in San Diego.

Two tools he wishes someone would build

I asked for the tool he wishes someone would just build. He had two, and a confession first.

“I don’t want to know how the canvas is made. Just let me go buy a canvas and I’ll use it, right?”

Daniel Marashlian, at 24:10

It’s a lovely line from someone whose last company sold to the makers of Canvas, and it’s the buy-don’t-build instinct of a developer who would rather write the product than run the infrastructure. The first wish is about incidents. Drata deploys on AWS Elastic Container Service, and a one-line fix still has to build a container, release it and swap the running ones out: “it’s like 20, 30 minutes, based on however long things take. And it’s like, I need that down to, like, one minute or three minutes.” He misses the days when “like PHP, just push the file to the server and it’s up, because it’s interpreted.”

The second one is bigger. In his words, “honestly, I think this would be a trillion-dollar idea,” and “I think AI is really going to help eventually solve it for people.” As software grows, every change depends on more of the system, and the hard question is always the same: “What does it impact?”

“So a tool to say, hey, you’re changing this one line of code or this function, you need to go check these six spots.”

Daniel Marashlian, at 24:10

Listen · Daniel on episode 64, from 26:57
About 12 seconds: one changed line, and the six spots you need to go check. Read the full transcript.
Two bars for the time a one-line fix takes to reach production during an incident: 20 to 30 minutes through the container pipeline, by Daniel's account, against the 1 to 3 minutes he wants. Below, a filled box for one changed line or one function, with an arrow to six outlined boxes, spots one to six, each saying check it. Then two notes. The first tool: during an incident, a one-line change still waits for the container to build and the service to swap containers, where an interpreted PHP file used to go live the moment it was pushed. The second, which he calls a trillion-dollar idea: a tool that tells you that the line or function you're changing means you need to go check these six spots.
Two wishes from a chief technology officer. Source: the tape at 24:10.

The field has a name for the second one, change impact analysis, the study of a change and its potential consequences in a product that’s already deployed (Wikipedia), and since we recorded, AI coding tools have gone after it directly. Scott Dietzen described Augment’s version on episode 74, where the AI watches one change and infers what else in the repository has to change with it. The security version of his wish is the one we care about most: before a change ships, know which controls it touches, so the evidence and the review follow the code. And the buy-don’t-build instinct runs all through Drata. In May 2026 Daniel wrote that Drata runs Socket “across every repo” for supply chain risk (LinkedIn), the company Feross Aboukhadijeh described on episode 36.

“I would love that,” I said. “This sounds magical.”

Dive in with both feet

I asked him to leave our listeners with some advice, and he spoke to the founders.

“my advice is it’s going to be the hardest thing that you’ve ever done, but at the same time, extremely rewarding. Just dive in with both feet and go all in.”

Daniel Marashlian, at 27:18

His version of going all in is learning. “It’s tempting to sit down and turn your brain off and watch the reruns of Friends or something at night. But instead of that, learn about a new, you know, design paradigm.” Go watch “the F8 conference or whatever it may be,” he said. “Just learn, keep learning.” And for the founders just getting started with compliance, he closed with Drata’s pitch, roughly 500 hours a year to maintain a SOC 2 report, down to about 50, “So it, it just makes it easier.”

What happened after the tape

The months after the recording were busy. On February 11, 2025, Drata agreed to buy SafeBase, the trust center company founded in 2020 by Al Yang and Adar Arnon, whose trust centers more than 1,000 organizations had used, with the deal expected to close later that month (Drata). About a week later, at four years since launch, Drata reported $100 million in annual recurring revenue, more than 7,000 customers and 60 percent year-over-year revenue growth, with frameworks like DORA, NIS 2 and ISO 42001 added along the way (Drata).

The episode aired on March 11, 2025. That summer Drata’s questionnaire AI passed a million questions, and in August Daniel published his four-stage AI roadmap. In February 2026, at five years, Drata opened a headquarters in San Francisco and counted more than 8,000 customers (Drata), and that April it unveiled a new brand “inspired by mission-grade aerospace discipline,” which fits the founding story on its about page, where Adam Markowitz starts out on NASA’s Space Shuttle Program.

About a minute: Drata's new brand, from April 30, 2026. Watch on YouTube.

On June 10, 2026, Drata declared AI agent governance the next major enterprise security category and revealed the product it is building for it, extending a platform it said 8,500 organizations use (Drata). In July its research found only 13 percent of GRC professionals fully confident in their AI visibility (Drata), and on August 4 the product went to limited availability, shipping first for Anthropic.

Continuous evidence collection, the idea Drata started with, applied to AI agents. The post says the product ships first for Anthropic. View on X.

Daniel’s own writing kept coming back to the messy middle. His August 2026 report on SOC 2 is the one quoted above, and in September Drata launched agentic third-party risk management (Drata). On October 28, 2026, Fortune’s fourth annual Cyber 60 put Drata at number 8 among growth-stage companies (Fortune). And this week Daniel is back in his own community, speaking at San Diego Startup Week from November 2 to 6 (LinkedIn).

A timeline of nine entries. February 2025, Drata agrees to buy SafeBase, the trust center company used by more than 1,000 organizations. February 2025, 100 million dollars in annual recurring revenue at four years, with more than 7,000 customers. Filled, March 11, 2025, episode 64 airs, recorded in November 2024. July 2025, a million questions processed by Drata's questionnaire AI, 85 percent of them answered. Dashed, August 2025, Daniel's AI roadmap, from a secure foundation to autonomous GRC. February 2026, five years, more than 8,000 customers, 190 percent more enterprise customers in a year, and a San Francisco headquarters. June 2026, AI Agent Governance declared a new security category, then shown on a screen in Times Square. October 2026, Fortune Cyber 60, with Drata at number 8 among growth-stage companies. Dashed, November 2026, Daniel on the program at San Diego Startup Week, November 2 to 6.
Two years after the tape. Sources: Drata's newsroom and blog, Daniel's LinkedIn and Fortune.

The phrase I keep from this episode is his first one. The first engineer is the security engineer, and the work that eats that engineer is the messy middle: the screenshots, the meetings, the questionnaire answered for the tenth time. Automate the middle and the two ends get better too. The structure gets more attention, and the report means more, because it’s built from evidence that never stopped flowing.

Did you catch it? A six-question quiz

Interactive · six questions

Did you catch it?

Six questions on what Daniel, Sasha and I actually said, with the timestamp for each answer. The answers are under each question for anyone reading without JavaScript.

  1. What did university buyers keep asking Portfolium for?

    1. A penetration test report
    2. Long security questionnaires, or a SOC 2 report
    3. Proof of cyber insurance

    b. "And it kept coming back to the extremely long security questionnaires or, let me see your SOC 2 report." Transcript, 2:35.

  2. How many of Portfolium's six engineers went to the first SOC 2?

    1. One
    2. Two
    3. Three

    c. "ripping three engineers off to help go get a SOC 2 report is no joke." Transcript, 2:35.

  3. What does Daniel call the part of compliance Drata set out to automate?

    1. The messy middle
    2. The last mile
    3. The paper trail

    a. "That messy middle is kind of boring and gross and mundane." Transcript, 5:47.

  4. Where does Drata run its generative AI, by Daniel's account?

    1. On models it trains in its own data centers
    2. On Amazon Bedrock, powered by Anthropic
    3. On a different model for every customer

    b. "We stayed with our AWS partner in using Bedrock and that technology downstream, which is powered by Anthropic." Transcript, 6:45.

  5. What did Drata have in hand the day before it launched?

    1. Its first paying customer
    2. A Series A term sheet
    3. Its own SOC 2 Type 1 report

    c. "we got our own SOC 2 report, Type 1, because it was like the first one, on January 14th of 2021. We launched on January 15th, the next day." Transcript, 17:10.

  6. What does Daniel call a trillion-dollar idea?

    1. A tool that tells you which spots a code change touches
    2. A container platform that deploys in seconds
    3. An AI that writes the SOC 2 report

    a. "you're changing this one line of code or this function, you need to go check these six spots." Transcript, 24:10.

Is your compliance program stuck in the messy middle?

Daniel’s line between structure, the messy middle and the artifact makes a good test of any program. This scorecard asks eight questions about yours, from how evidence gets collected to who answers the questionnaires.

Scorecard · eight questions

Is your compliance program stuck in the messy middle?

Answer for the framework your buyers ask about most, usually SOC 2. If two answers fit, pick the lower one.

  1. How does evidence for your controls get collected?

    • Screenshots and spreadsheets, gathered before each audit
    • Some integrations, and the rest by hand
    • Integrations collect it continuously, and people review the exceptions

    Daniel's starting point: continuous evidence collection for security controls. See The messy middle.

  2. When a control drifts, say MFA gets turned off or a former employee still has access, when do you find out?

    • When the auditor finds it
    • At a quarterly access review
    • Within a day, from a test that runs on its own

    Auditors sample the whole period, not the month before. A setting that's on isn't always enforced.

  3. How many engineers will your next audit pull off the roadmap?

    • Half the team, like Portfolium's three of six
    • One or two people, for a few weeks
    • A few hours each, because the evidence is already flowing

    "ripping three engineers off to help go get a SOC 2 report is no joke." Let me see your SOC 2 report.

  4. Who answers security questionnaires?

    • Whoever the salesperson can find
    • One person, from a spreadsheet of old answers
    • An owner, from a maintained answer library or trust center

    The questionnaires are the messy middle's second home. Drata's questionnaire AI had processed a million questions by July 2025.

  5. Can a buyer see your current security posture without a meeting?

    • No, they have to ask
    • We send the report and a bridge letter when asked
    • A trust center with current documents and status

    Drata bought SafeBase, the trust center company, three months after this recording.

  6. If your compliance tools use AI, how is your data kept apart from other customers'?

    • We haven't asked
    • The vendor says it's separated
    • It's in writing: isolated per customer, and no training on our data

    Daniel's team isolated, indexed and sharded each customer's data before shipping a single AI feature. See Isolating and indexing and sharding the data.

  7. How do you review your own vendors' SOC 2 reports?

    • We don't
    • Someone reads them when there's time
    • For every critical vendor, with exceptions and bridge letters tracked

    A 200-page report is where Drata pointed its first AI summaries.

  8. Who owns the program?

    • Whoever has time, usually the first engineer
    • An engineer, part time
    • A named owner with time set aside, and outside help for the audit

    "as the first engineer, I had to be the security engineer." It's the right start and the wrong long-term plan.

Still in the messy middle

The program runs on people remembering things, and every audit and every questionnaire starts from scratch. Start with the evidence: connect the systems your auditor samples most, so the proof collects itself, and give one person ownership of the program with time to do it.

Halfway out

The evidence mostly flows, and the gaps are around it: drift you find late, questionnaires answered from memory, buyers who have to ask. Add tests that catch drift within a day, build one answer library with an owner, and put your current posture where buyers can see it.

Running like a well-oiled machine

Your evidence is continuous, your answers are maintained and your buyers can see the current state. Now spend the time you got back on the structure: the controls that match how your product works today, including the AI features and agents you're adding.

What does the messy middle cost you?

Daniel’s numbers were 500 hours a year to maintain a SOC 2 report by hand and about 50 with automation, and three of six engineers for Portfolium’s first report. This calculator puts your own numbers next to his.

Calculator

What does the messy middle cost you?

Hours a year your team spends on evidence, audits and questionnaires, the hours you'd spend with the evidence collecting itself, what an hour of that time costs, and what your first report pulls off the roadmap.

–hours a year back
–a year, at your hourly cost
–of engineering on the first report
–engineering hours off the roadmap

At 500 hours a year today and 50 with the evidence collecting itself, you get back 450 hours, about $54,000 a year at $120 an hour. Pulling 3 of 6 engineers for 3 months puts 50% of engineering on the first report, about 1,440 hours off the roadmap.

The 500 and 50 hour defaults are Drata's own figures for maintaining a SOC 2 report, from Daniel on the tape and his August 2025 post. The three of six engineers are his Portfolium story, and the three months, the 160 working hours a month and the $120 an hour are placeholders for yours. A first audit also costs the auditor's fee and a few months of observation for a Type 2, which this doesn't count.

From Winamp to agent governance

Everything on this page sits on one timeline, from a Sedona software company to agents with their own governance. Filter it by thread.

Timeline · 1986 to 2026

From Winamp to agent governance

Filter by thread. Dates are from the public record except where marked as Daniel's own account on the tape.

  1. CVS

    Dick Grune's Concurrent Versions System, built on the older RCS (Wikipedia).

  2. Nullsoft, in Sedona

    Justin Frankel founds the company behind Winamp in Daniel's hometown (Wikipedia).

  3. AOL buys Nullsoft

    For $80 million (Wikipedia).

  4. Subversion

    The version control system Daniel used before Git (Wikipedia).

  5. Sarbanes–Oxley

    The SOX in his list of a public company's obligations (Wikipedia).

  6. Rio Salado College

    Web and database developer on a learning management system, in Tempe (LinkedIn).

  7. Git

    Linus Torvalds releases it for the Linux kernel (Wikipedia).

  8. GitHub

    Founded, the tool Drata later signed up for without a sales call (Wikipedia).

  9. Pelotonics

    Co-founder and chief technology officer (LinkedIn).

  10. TweetPhoto, then Plixi

    Chief technology officer, until Lockerz bought it in January 2011 (LinkedIn).

  11. RapidEngage

    Co-founder and chief technology officer, later bought by QuestionPro (LinkedIn).

  12. Portfolium

    Co-founder and chief technology officer of LinkedIn for college students (LinkedIn).

  13. Instructure

    Senior director of engineering after it bought Portfolium (LinkedIn).

  14. Drata is incorporated

    Around July 6, by Daniel's account on the tape, in the middle of COVID.

  15. Launch, with its own SOC 2

    Delayed until it had a clean report, earned with its own product (Drata).

  16. Series A

    $25 million, led by GGV Capital (Drata).

  17. A billion, in 10 months

    A $100 million Series B led by ICONIQ Growth (Drata).

  18. Series C

    $200 million, doubling the valuation (Drata).

  19. Amazon Bedrock

    AWS launches its foundation model service (Wikipedia).

  20. An AI philosophy

    Segregated models and datasets per customer (Drata).

  21. oak9

    Drata buys it and launches Compliance as Code (Drata).

  22. Questionnaire AI

    A first look, live at Drataverse (Drata).

  23. We record episode 64

    "That messy middle is kind of boring and gross and mundane."

  24. SafeBase

    Drata agrees to buy the trust center company (Drata).

  25. $100 million

    In annual recurring revenue at four years, with more than 7,000 customers (Drata).

  26. Episode 64 airs

    This conversation.

  27. A million questions

    Processed by Drata's questionnaire AI, 85 percent answered (Drata).

  28. Scott Dietzen on this show

    Augment's version of knowing what a change touches (episode 74).

  29. Four stages of Drata AI

    Daniel's roadmap, from isolated indexes to autonomous governance (Drata).

  30. Five years

    A San Francisco headquarters and more than 8,000 customers (Drata).

  31. AI agent governance

    Declared the next major enterprise security category (Drata).

  32. Limited availability

    Shipping first for Anthropic (X).

  33. SOC 2, unfiltered

    Roughly 70 percent of Drata customers have SOC 2 (Drata).

  34. Fortune Cyber 60

    Number 8 among growth-stage companies (Fortune).

  35. San Diego Startup Week

    Daniel on the program, November 2 to 6 (LinkedIn).

What to do this week

Five things, in the order Daniel’s story suggests.

  1. Count the hours. Add up what your team spent last quarter on evidence, audits and security questionnaires, and put it in the calculator above. Most teams have never written that number down.
  2. Automate the evidence your auditor samples most. Access reviews, MFA, offboarding and change management are usually the top of the list. Connect each one to a test that runs every day, and give someone the job of reading the failures.
  3. Build one answer library. Collect the answers from your last ten questionnaires in one place, give it an owner and publish what you can on a trust center, so the next buyer doesn’t start a meeting.
  4. Ask your AI vendors how your data is kept apart. In writing: isolated per customer or not, trained on or not, and who else sees it. Daniel’s team answered that question before shipping a single AI feature.
  5. Pick your first report on purpose. If a deal needs proof now, a Type 1 can start the record while the Type 2 observation window runs, the way Drata launched with its own report in hand. Don’t pull half your engineers to get there.

Key takeaways

  1. The first engineer is the security engineer

    At every company he co-founded, Daniel was the first engineer, and so also the security engineer, from AppSec to IT, networking and firewalls, until the company could hand it to specialists. He counts Drata as his eighth company.

  2. A SOC 2 request can stall a deal

    Selling Portfolium to universities, almost every chief information officer asked how the startup would protect student data, then asked for long security questionnaires or a SOC 2 report. Daniel calls it starting to block deal flow.

  3. Half the engineers, for one report

    Portfolium had six engineers, and pulling three of them off the roadmap to get its first SOC 2 report was, in Daniel's words, no joke and a big decision.

  4. Big companies did it by hand too

    After Instructure bought Portfolium, Daniel found its 1,400-person company running compliance the same way his 40-person company had, with spreadsheets, screenshots, tickets and meetings. That convinced him the industry needed automation.

  5. Automate the messy middle

    Drata's emphasis is continuous evidence collection for security controls. The structure of a secure business and the report that builds trust are the valuable ends, and the meetings, screenshots and evidence gathering in between are the messy middle worth automating.

  6. Isolate the data before adding AI

    Drata added generative AI on Amazon Bedrock, powered by Anthropic, after spending six to nine months isolating, indexing and sharding each customer's data. Then it added AI to workflows with a goal of cutting the human time by 90 percent.

  7. Disrupt yourself

    Drata keeps a small internal team whose job is to disrupt the company with AI, because if Drata doesn't keep innovating, someone else will.

  8. Change elevation

    Daniel's days swing between 30,000 feet, planning and leading a company of about 550 people, and the ground floor, with code reviews, architecture reviews and incidents. He thinks of it as 100 five-minute problems a day.

  9. Respect the craft

    His most important leadership quality is respect for the people you lead and knowledge of their craft, which earns the trust that keeps teams together. Every leader on his team is technical enough to jump into the code.

  10. Guide the machine

    Drata's long-term goal is the enterprise: helping a public company that runs SOX, SOC 2 and GDPR with a 70-person compliance team do it with something more like 20, by guiding the machine instead of letting the process guide them.

  11. Partnership wins the practitioners

    Innovative security and GRC leaders want automation, while practitioners can fear displacement or distrust a new way of working. Daniel says brand, communication, collaboration and partnership win them, not just handing over a tool.

  12. Drink your own champagne

    Drata used its own product to earn its own SOC 2 Type 1 report on January 14, 2021, and launched the next day, to prove the product did what it sold.

  13. Every big round closes some exits

    Daniel names signing the term sheets of big rounds as one of the hardest days, because each higher valuation removes the smaller acquisitions a founder could otherwise take.

  14. Know what a change touches

    His trillion-dollar idea is a tool that tells a developer that changing one line or function means checking six specific places, which he expects AI to help solve.

Chapters

Tap a chapter to play from there.

Pull quotes

“But you always had, as the first engineer, I had to be the security engineer.”

Daniel Marashlian ·

“How are you going to protect our student data? And it kept coming back to the extremely long security questionnaires or, let me see your SOC 2 report.”

Daniel Marashlian ·

“And even a decade ago, it was like, well, SOC 2, what? Like, we're on AWS. Don't worry about it. Let's go.”

Daniel Marashlian ·

“And for a small startup, I think we had six engineers at that startup, ripping three engineers off to help go get a SOC 2 report is no joke. It's a big decision.”

Daniel Marashlian ·

“It was like the same way that I was doing it: spreadsheets, screenshots, [Jira] tickets, meetings, but not of like a 40-person company, like a 1,400-person company.”

Daniel Marashlian ·

“I think we need to automate this for the industry.”

Daniel Marashlian ·

“I don't think anyone's excited about having meetings, collecting screenshots, and like getting evidence of how I effectively operate a security control in my business. That's not the fun part.”

Daniel Marashlian ·

“That messy middle is kind of boring and gross and mundane. And that's what we're trying to automate, is that continuous collection of data.”

Daniel Marashlian ·

“We stayed with our AWS partner in using Bedrock and that technology downstream, which is powered by Anthropic, and like isolating and indexing and sharding the data appropriately.”

Daniel Marashlian ·

“So we even have like a little team inside Drata of like, go disrupt ourselves, right?”

Daniel Marashlian ·

“you know what I always say? 100 five-minute problems every day.”

Daniel Marashlian ·

“I always call it like changing elevation. Like, you need to be able to fly at 30,000 feet, operate and lead the business and think forward.”

Daniel Marashlian ·

“I think just have respect for the people you're leading and know their craft.”

Daniel Marashlian ·

“There still are humans that are involved, but instead of having a 70-person team, maybe you have a 20-person team.”

Daniel Marashlian ·

“I love that you're falling in love with the problem instead of like the answer to that question.”

Jon McLachlan ·

“So I think it's brand, it's communication, it's collaboration and partnership versus just, here's a tool, go use it.”

Daniel Marashlian ·

“the idea is that everyone who is building the product should be that team member of the customer experience.”

Sasha Sinkevich ·

“this, like, seven-year-old startup on day one. It was a, it was a cheat code that we had.”

Daniel Marashlian ·

“We wanted to have it and prove to the world that you can use Drata for what we're selling.”

Daniel Marashlian ·

“Sometimes one of the most challenging days was actually signing the term sheet of those big rounds.”

Daniel Marashlian ·

“I don't want to know how the canvas is made. Just let me go buy a canvas and I'll use it, right?”

Daniel Marashlian ·

“So a tool to say, hey, you're changing this one line of code or this function, you need to go check these six spots.”

Daniel Marashlian ·

“Just dive in with both feet and go all in.”

Daniel Marashlian ·

About the guest

Daniel Marashlian, Co-Founder and Chief Technology Officer, Drata

Daniel Marashlian is the co-founder and chief technology officer of Drata, the compliance automation and trust management company he started in June 2020 with Adam Markowitz and Troy Markowitz. Drata launched in January 2021 with its own SOC 2 report, reached a $1 billion valuation 10 months later and counts more than 8,000 customers. Before Drata, Daniel was co-founder and chief technology officer of Portfolium, a LinkedIn for college students that Instructure, the makers of Canvas, bought in 2019, and he led its engineering inside Instructure until 2020. His earlier companies include RapidEngage, TweetPhoto, later Plixi, and Pelotonics, and he started his career building a learning management system at Rio Salado College in Arizona. He went to the University of Arizona, grew up in Sedona and lives in San Diego.

About the host

Jon McLachlan and Sasha Sinkevich are co-founders of YSecurity, the on-demand cybersecurity team for startups, and of Cyberbase.ai. The Security Podcast of Silicon Valley is hosted by Jon McLachlan and Sasha Sinkevich. Jon McLachlan on LinkedIn ↗Sasha Sinkevich on LinkedIn ↗

Context and sources

  • Daniel Marashlian's LinkedIn experience: Drata co-founder and chief technology officer since June 2020, Instructure senior director of engineering from February 2019 to June 2020, Portfolium co-founder and chief technology officer from May 2014 to February 2019, RapidEngage, Lockerz, Pelotonics, Plixi, Epic Cycle Interactive and Rio Salado College. Source ↗
  • Drata, About: the co-founders Adam Markowitz, Daniel Marashlian and Troy Markowitz, the Portfolium origin story, Adam's start on NASA's Space Shuttle Program, and more than 8,000 customers, more than 30 frameworks and 15.7 million evidence items processed daily. Source ↗
  • Drata's author page for Daniel Marashlian: 20-plus years across product and engineering, and earlier ventures including Portfolium, RapidEngage, TweetPhoto and Pelotonics. Source ↗
  • Adam Markowitz, Drata Raises $25M Series A, Drata's blog, June 23, 2021: led by GGV Capital with SVCI, Okta Ventures and Basis Set Ventures. Source ↗
  • Adam Markowitz, Drata on its $100M Series B Led by ICONIQ Growth, Drata's blog, November 8, 2021: with Alkeon Capital and Salesforce Ventures, one of the fastest SaaS companies ever to reach a $1 billion valuation, after 10 months, with more than 70 employees. Source ↗
  • Adam Markowitz, Announcing Drata's Series C, Drata's blog, December 7, 2022: $200 million co-led by ICONIQ Growth and GGV Capital, doubling the valuation in a little over a year. Source ↗
  • Adam Markowitz, Key Takeaways From Two Years Since Launch, Drata's blog, January 13, 2023: launch delayed to January 2021 until Drata had its own clean SOC 2 report, 15 people at launch, more than 300 employees two years in. Source ↗
  • Lior Solomon, Trust and Privacy by Design: Drata's AI Philosophy, Drata's blog, March 19, 2024: Amazon Bedrock models including Anthropic's Claude, and tenant-specific models and datasets to prevent cross-contamination between customers. Source ↗
  • Adam Markowitz, Drata's Acquisition of oak9 Ushers in New Era of Compliance as Code, Drata's blog, May 2, 2024. Source ↗
  • Drata, Drata Unveils First Look at AI Questionnaire Automation at Drataverse 2024, June 12, 2024: shown live to more than 600 GRC, IT and cybersecurity professionals. Source ↗
  • Drata, Drata to Acquire SafeBase, February 11, 2025: SafeBase founded in 2020 by Al Yang and Adar Arnon, with trust centers used by more than 1,000 organizations. Source ↗
  • Drata, Drata Celebrates Four Years, February 19, 2025: $100 million in annual recurring revenue, more than 7,000 customers and 60 percent year-over-year revenue growth. Source ↗
  • Daniel Marashlian, Revitalizing SOC 2 and Beyond: How Drata Transforms Compliance and Auditing, Drata's blog, February 28, 2025. Source ↗
  • Drata, AIQA milestone, Drata's blog, July 29, 2025: more than 1,000,000 questions processed and 85 percent answered. Source ↗
  • Daniel Marashlian, Drata AI: From Secure Foundation to the Future of Autonomous GRC, Drata's blog, August 8, 2025: four stages, isolated indexes per customer, and 500 hours a year down to under an hour a week. Source ↗
  • Adam Markowitz, Five Years In: Becoming The Trust Layer Between Great Companies, Drata's blog, February 10, 2026: 60 percent revenue growth, more than 8,000 customers and a San Francisco headquarters. Source ↗
  • Daniel Marashlian on LinkedIn, February 17, 2026: five years of Drata, 190 percent year-over-year enterprise customer growth and customers in more than 80 countries. Source ↗
  • Daniel Marashlian on LinkedIn, January 26, 2026: a talk about the eight companies he has started. Source ↗
  • Drata, Drata Expands Trust Management Platform to Support Governance of Enterprise AI Agents, June 10, 2026. Source ↗
  • Daniel Marashlian on LinkedIn, June 10, 2026: Drata as customer zero for its own AI agent governance. Source ↗
  • Daniel Marashlian on LinkedIn, June 14, 2026: the AI agent governance launch on the Nasdaq screen in Times Square. Source ↗
  • Drata, New Drata Research Finds Only 13% of GRC Professionals Are Fully Confident in Their AI Visibility, July 15, 2026. Source ↗
  • Drata on X, August 4, 2026: AI Agent Governance in limited availability, shipping first for Anthropic. Source ↗
  • Daniel Marashlian, SOC 2, Unfiltered: What the Data Tells Us, Drata's blog, August 25, 2026: roughly 70 percent of Drata customers have SOC 2, smaller teams reach readiness and complete more often, and a Type 2 observation period of roughly six to twelve months. Source ↗
  • Drata, Drata Debuts Agentic Third-Party Risk Management, September 16, 2026. Source ↗
  • Fortune, Cyber 60, the fourth annual list: Drata at number 8 among growth-stage companies. Source ↗
  • Daniel Marashlian on LinkedIn, October 2026: speaking at San Diego Startup Week, November 2 to 6. Source ↗
  • Drata, Drata: The Founding Story, YouTube, April 2, 2026. Source ↗
  • Wikipedia, Nullsoft and Winamp: founded in Sedona, Arizona in 1997 by Justin Frankel, and sold to AOL in 1999 for $80 million. Source ↗
  • Wikipedia, Sedona, Arizona: a population of 9,684 in the 2020 census. Source ↗
  • Wikipedia, Git, Apache Subversion and Concurrent Versions System: release dates for the version control history Daniel describes. Source ↗
  • Wikipedia, Amazon Bedrock: AWS's foundation model service, launched in 2023. Source ↗
  • Wikipedia, Change impact analysis. Source ↗
  • Google, Tech Talk: Linus Torvalds on git, YouTube, May 14, 2007. Source ↗

Transcript

Automatic transcription. There is no diarization on the tape, so speaker labels were assigned from the content with help from speaker-embedding labels and word-level pitch, and a few short lines may sit with the wrong speaker. The published episode is edited down from a longer recording, so a few answers begin or end where two parts of the conversation were joined. Names and product names were normalized where the recognizer misheard them (Jon McLachlan, Sasha Sinkevich, Daniel Marashlian, Drata, Portfolium, Instructure, SOC 2, SOX, Bedrock, Anthropic, CISO, Subversion, CVS, Winamp, AWS ECS). Short backchannels such as "mm-hmm" and "oh, yeah" are left out. Words in [brackets] are best guesses where the audio is unclear.

Read the full transcript 5,093 words

Jon McLachlan

Hello everyone and welcome to another episode of The Security Podcast of Silicon Valley. I'm one of the hosts, Jon McLachlan. I'm joined today by Sasha Sinkevich, our other host. And we have an amazing guest to share with everyone, Daniel Marashlian, the co-founder and CTO of Drata, an amazing security company here in the Valley. Welcome to the show.

Daniel Marashlian

Thank you.

Jon McLachlan

Welcome, Daniel. It's great to have you. Congratulations on all of the success with Drata. I felt like it just sort of showed up out of nowhere, was a really nice, viable alternative to that other platform.

Daniel Marashlian

Yeah, it does kind of seem like we came out of nowhere. And we're approaching our four-year mark in market, like three and a half, three and three quarters, somewhere in between there. If you're, you know, a little, I mean, we're still like little toddler size, right? So you can say three and a half, I think, still. But we're getting there. It's fun.

Jon McLachlan

Do you think of yourself as a security person? Are you a security person?

Daniel Marashlian

I would say, so I'm a serial entrepreneur. I'm on the tech side of life. I've been, you know, trained programmer, been programming for 20-plus years, expert developer myself. But as that first engineer in all these companies I've started, I think I've lost count. This is my eighth from my last count that I did. Some, you know, we started and shut down in three, six months, and some we went on to exit and beyond. But you always had, as the first engineer, I had to be the security engineer. Not only from the engineering AppSec side, but, you know, IT, you know, networking, firewalls, all that fun, goody stuff, offense, defense. But, uh, so, always had to be that, but I wouldn't say that's where my career was. And then, as we grew in whatever company we did, eventually you would offshore that and hire a security engineer or whatever it may be. But it's fun. It's fun being involved with that team. That's one of my favorite teams at Drata to work with. They're awesome. And so, obviously, always pass it down to the experts, but, yeah. In terms of a career in cyber, the answer is no, right? Like, you go look at the cybersecurity community of companies for the past 40 years, and that wasn't my forte in my career of the past almost 20 now. It was in B2B, social networking, education. And all of a sudden, you know, this go-around, we started a cybersecurity company. And some may ask why.

Jon McLachlan

Yeah, why? Well, you got to be a little crazy to get into this security space, right?

Daniel Marashlian

Like, yeah, you know, relatively short. We started a company about a decade ago, my co-founder and I, Adam. And it was in edtech. It was called Portfolium. Think of LinkedIn for college kids is the easiest way to think about it. And it worked, but it was a grind, right? It was your classic start, it was seven years. I think we raised, I should, I'm embarrassed. I should know how much we raised. I think it was like 8 million, somewhere around there. And we did end up selling it seven years later to Instructure, the makers of Canvas. But in that journey, it was a grind, right? From starting it from the bottom-up approach, more like a social network, to realizing where the revenue and sustainability of the business would be is more top-down to the universities. And the more and more we got to selling to universities, like almost every time the CIO or someone like that would come in and it'd be like, this looks great. Love what you guys are doing. How are you going to protect our student data? And it kept coming back to the extremely long security questionnaires or, let me see your SOC 2 report. And even a decade ago, it was like, well, SOC 2, what? Like, we're on AWS. Don't worry about it. Let's go. But, you know, then you're like, okay, this is serious. Like, we're starting to block deal flow. And obviously, the security aspect is super important. And so it was, let's look into this. Let's dive in. And then once I did, it's like, you don't know what you don't know. Hire a consultant, rip engineers off the roadmap, go through the whole gamut. And for a small startup, I think we had six engineers at that startup, ripping three engineers off to help go get a SOC 2 report is no joke. It's a big decision. You know, we did it, all good. But then in that journey of being acquired and working with Instructure's security team, it was awesome. Like, I, it was weird in a way. I was extremely excited about compliance. And I think the reason was I saw the pain that sales teams, my sales teams particularly, went through of like trying to help to grow through procurement and increase deal velocity. So it was like, all right, well, how's this big multinational, multibillion-dollar company doing it? And they had a big-size security compliance group. And so I wanted to learn from them. Canvas is one of the largest brands and probably has the world's largest set of data around students. It was like the same way that I was doing it: spreadsheets, screenshots, [Jira] tickets, meetings, but not of like a 40-person company, like a 1,400-person company. It just opened my eyes to, whoa, I really think this is how the industry is doing it. And while Canvas is a decent-sized business, it's not 14,000 or 140,000. So you could think about those very large entities and they're just doing it by hand with just humans. And it was like, you know what? I think we need to automate this for the industry.

Jon McLachlan

You felt that pain. And you're like, let's do something about this.

Sasha Sinkevich

When we start talking about automation, where do you begin automating? Because there's so many different things that you automate. How did you land your top three automatable spaces or subset of the problem itself?

Daniel Marashlian

It really, when we say automation, not that it's limited to this, but there's a big emphasis, which is continuous evidence collection for controls, security controls. I don't think anyone's excited about having meetings, collecting screenshots, and like getting evidence of how I effectively operate a security control in my business. That's not the fun part. The cool part is setting up structure for your business to run secure, you know, a well-oiled machine. And the output is, call it, this artifact that you can use and to build trust as you continue to grow your brand into different, those are great. That messy middle is kind of boring and gross and mundane. And that's what we're trying to automate, is that continuous collection of data.

Sasha Sinkevich

How do you guys take advantage of the AI or Gen AI technology as a whole? And what are the specific new developments that you're personally excited about?

Daniel Marashlian

Really trying to understand the models, pick the right partner. We stayed with our AWS partner in using Bedrock and that technology downstream, which is powered by Anthropic, and like isolating and indexing and sharding the data appropriately. So we took a lot of time in the data pipelining and just the hard engineering part. Once that was done, we said, hey, application teams and product teams, what do you want to do with this? And so now we're starting to sprinkle all that in across the app and all these workflows that we see a human might take, you know, whatever, from an hour to 10 hours to do. It's like, how do we use generative AI to reduce that by 90%? So that's, that's where we're starting. And that's been kind of, you know, the first six, nine months was the infrastructure. Now it's been roughly nine or like three quarters or so of sprinkling AI and workflows in. And as we look forward into next year and beyond, it's continually finding advancements, automations, reduction of time, tasks. That's great. And I think we're going to be like, I think the thing I'm most excited about that we've been talking about is like, if we don't continue to innovate, someone else will. And we don't want that to happen to us. So we even have like a little team inside Drata of like, go disrupt ourselves, right? Using AI and make sure that we're on the cutting edge of that. So that's kind of what I'm super excited about.

Sasha Sinkevich

Yeah, and this is quite a common topic of how do we ensure that we don't slow down as a company.

Jon McLachlan

So, inside Drata, what does a typical day look like for you?

Daniel Marashlian

It definitely varies day to day, but, uh, from doing podcasts to, to, you know, CISO dinners and fun marketing field stuff. But on a more technical day, call it, sometimes it's, uh, you know what I always say? 100 five-minute problems every day. A lot of times, that is one of my days. It's, and that's fine. It's not really, it's not a complaint. It's about a realization of the role of, we have about, how big [is the team] now, about 550, about 250-ish, somewhere in there on technology. And that's a lot of people, a lot of concerns, a lot of help. And if I can go help each one of them move even, you know, 20 minutes faster, that's awesome. Like, I'm doing my role as a leader across everyone. So a lot of times I'm very involved across code reviews, architecture reviews, any IT blocking stuff, and collaborating with those respective groups to just move everyone as fast as possible. But then sometimes, last week, actually, we grabbed all the technology leaders. So any director-plus that reports up to me or Brian, my head of product, and we grabbed that whole group for three days and did a, you know, 2025 look-ahead and planning session. So those are fun days too. I always call it like changing elevation. Like, you need to be able to fly at 30,000 feet, operate and lead the business and think forward. But if there's an incident, which, you know, hopefully we have none, but, you know, they'll always happen, from an incident to a code review to whatever, literally, next moment, be able to drop down to the ground floor with the troops and being able to do a code review, architecture review, help through an incident.

Jon McLachlan

I love that. I love also that you still get your hands dirty here and there and pay attention to where the rubber hits the road.

Daniel Marashlian

Absolutely. Yeah, that's been a philosophy of day one that I've always been a leader. So when I went on my entrepreneurial journey, it was like, as I hire people, as I bring people on, especially leaders and managers, like, you have to be technical. So everyone from me to directors to managers to ICs, like, everyone is super technical. Obviously, we have our respective roles and pie charts of duties, but, uh, when it comes time, we all can jump into the code.

Jon McLachlan

What's the most important quality of a leader, do you think?

Daniel Marashlian

That's a good call. Hmm. I think just have respect for the people you're leading and know their craft. And A, if you can earn their trust by relating to their pains and their wins and their craft, you can build trust with them for them to follow you forever. So, like, as an example, I've been working with my head architect, John, for almost 20 years now. And we built four-plus companies together. And it's like, the guy is an unbelievable resource. But it's his trust that no matter what, I got his back of what we're going to build. He trusts me on the business side to, like, make sure we're getting paychecks and all that fun stuff. So yeah, there are many more like that at Drata that I've worked with time and time again.

Jon McLachlan

Sounds like a really good, solid, positive collaboration. When you look into the future, what does that next, like, huge milestone for success look like for Drata? What do you see in its future?

Daniel Marashlian

I think the answer long term is the other side of the business, which is upmarket and enterprise. And how do you disrupt that legacy thinking of GRC and needing to hire a 70-person security compliance team to maintain all these certs because I'm a public company and I have to do SOX and I have to do SOC 2 and I have to do GDPR and all this other fun stuff, and therefore I need to hire humans to do it all? How do we use a tool like Drata and reduce the human capital, you know, kind of human capital impact? There still are humans that are involved, but instead of having a 70-person team, maybe you have a 20-person team. I don't know, whatever it may be. So I think, like, helping larger enterprises really adopt this new way of thinking of automating this program and kind of being there to, like, guide the machine versus having the program and the process guide you.

Jon McLachlan

Right. Become the standard. I see. I know, I love that. I love that you're falling in love with the problem instead of like the answer to that question.

Sasha Sinkevich

There is also a very interesting question of how do you disrupt the existing patterns? As we know, especially in larger organizations, it's pretty hard to come in with a new process. It needs to be obvious to people who follow the process why they should follow something new.

Daniel Marashlian

Yeah. You know, we've been moving up more and more upmarket in the past couple years. It's been great to see our ASPs increase and all that fun, fun stuff. But, uh, absolutely, what you just said, right? You'll find the innovative CISOs and GRC leaders and CXO leaders that are like, this is great. Let's automate this. Let's, even if it's not about reducing staff, but it's about automating this process to allow these very highly skilled security engineers, et cetera, [to] focus on different problems and securing the business versus that, again, like I said, that messy middle of compliance. So they want to do it. And then you go talk to the practitioners on the floor, that group of 70 I talked to, and there's a resistance. Like, they think we're going to displace them, or they think it's not trustworthy, or they think it's, you know, just a different way. So I think it's brand, it's communication, it's collaboration and partnership versus just, here's a tool, go use it. I think, you know, I'm the biggest fan of GitHub, and I love it as a developer. And I'm sure the very, very large companies have, like, you know, dedicated partnerships with them. But, like, I just signed up for Drata. I mean, now we have, like, you know, probably 200-ish-plus people that contribute to code on GitHub, but, like, I just signed up for it when we started the company. And I go, I never talked to anyone at GitHub. I think maybe eventually, as we grew to the enterprise plan, I'm sure we have a CSM that IT manages, but, like, we just use it and it's great. And that is a really great place to be. But you weren't, like, disrupting how I did code. Roll back, if you guys all remember, maybe, I don't know, 15, maybe more like 20 years ago, like Subversion was more of the popular, but then even before that, right? It was like this concept, remember that? And then like CVS or whatever. And so it's just like, how do developers collaborate? And then, you know, GitHub and, more importantly, Git came out and it just made the world of difference. So I'm sure in that phase, I never was really in that phase too. I used Subversion, but it was like, I was the one fighting the team to go to Git very early on. And we did that, but no matter what disruption of technology, the cloud, you know, the cloud computing wave is probably the best example. Maybe the most modern example is AI. But, like, uh, yeah, I don't think it's just like, here's the technology, use it. I think you have to really build partnership strategies and just that customer obsession and care in that post-sales world, like implementation and customer support and the customer success management cycles. We just attach ourselves to our customers, and we just, customers are the center of the business. Therefore, like, the rest of the business is surrounding our customer support group. Everyone is there to support them internally. And so with that effort, that's how I would say we win at the end of the day. It's like the relationships and partnerships that we give to our customers. And you see it time and time again with AWS and others. It's like, I can talk to so many people at AWS for free to help me, like, figure something out. They don't charge for it because they know the more you're successful on AWS, the more you'll spend on the services.

Sasha Sinkevich

So yeah, customer experience is critical. And UI, UX, all of these are trivial to the success of the organization. And I know some organizations shy away from creating a dedicated UI UX team or, I should say, customer success teams, because the idea is that everyone who is building the product should be that team member of the customer experience. You have to understand what the pain point is.

Jon McLachlan

So, what's the best day that you've had at Drata?

Daniel Marashlian

That's a good one. I think launch day was pretty fun, just because of this immense hard work. And we also launched in the middle of COVID, and we started the business in very early July, like July. I think we incorporated on July 6th or something of 2020. There's three co-founders and then a group of founding engineers, a couple founding sales individuals and our CS lead. So it was like, from day one, it was this, you know, 10 or whatever person team that we had, this, like, seven-year-old startup on day one. It was a, it was a cheat code that we had. So all that work in development, R&D mode, stealth mode, and those, you know, just grueling, like literally 16, 18 hours a day of coding. That's it. Yeah. Just that culmination of this product where we were our first customer. We used our own tool to get our own SOC 2 report. And the day I remember when we got it, we got our own SOC 2 report, Type 1, because it was like the first one, on January 14th of 2021. We launched on January 15th, the next day. We wanted to have it and prove to the world that you can use Drata for what we're selling. And so that was a really proud moment. That was fun. I would say another, just a couple more days come to mind was, I mean, the funding rounds are amazing, but the one that really stands out was our B round, the $100 million round we raised at a billion-dollar valuation. And that was 10 months into the business of launching the company. And from everything I've found online, I think we were the 10th fastest in the world to ever do that. And that was just a very proud moment of all my work and my career. That, obviously, not just me, the entire team and what we did. And it was just, you know, I think the sense of team, and it was smaller then. I think we had like 40 or so people. It was just unbelievable, even in the remote culture that we had, to just be there all together. And yeah, that was super fun. And then I would say the third one was, we won an award that got put, like, the [SB] Tech 50, and we, you know, got on that list in their inaugural year. And it was at the NASDAQ floor and tower. And so there was, you know, a whole day where we were at the closing ceremony and up on the big thing in Times Square and stuff. And so I've just never had something like that in my career. So it was just like, again, a big surreal moment where me and Adam, my CEO, were, our faces on the middle of Times Square. So that was, that was pretty fun. Pretty cool stuff. On top of the world.

Jon McLachlan

Nice. I can really feel the pride that you have in the team. That's special. Okay, so what about the most challenging day that you've ever had?

Daniel Marashlian

Fair enough. Sometimes one of the most challenging days was actually signing the term sheet of those big rounds. As a serial entrepreneur, not to say an exit is my strategy, but there's amazing value to the individual person of myself or my family or my coworkers' families on an exit. And the more and more money you take, the more valuation goes up, the pool of acquiring companies, not to say that that's the target, but there's always an option there, it just gets smaller and smaller. It goes down. So it's like, okay, we're going to go take this billion-dollar round. All of those three, four, $500 million acquisitions are out of the door. And holy cow, imagine launching a company in a year to two and getting acquired for four or $500 million. You'd be on top of the world. Like, that's an amazing story. All those are gone and off our plate, right? I love where we're at and where we're going, and, like, that we're marching towards an IPO, but, like, those options were gone. So those were challenging decisions that we did as a founding team. I would say on the technical side, probably, you know, there's incidents that happen just like at any shop, and you get through those. It's almost a mark of success, you know.

Jon McLachlan

Yeah, it happens. Yeah, and you have to get through that just to get on to the next, like, big...

Daniel Marashlian

Yeah. And actually, it's a really weird thing to say. Obviously, I never want an incident, for sure, but they will happen. And you see the people that step up, and you see the people that truly are experts at their craft, but also have care for their customers and their business. And so that's really cool to see.

Jon McLachlan

If you could go back in time and meet the younger Daniel, would you? And if you would, what would you say?

Daniel Marashlian

Yeah, I would probably say get more, I got into tennis. I'm a big tennis player, but I got into it later in life, at like 16 or so. But I remember my mom putting me in lessons when I was young, like six or something. I would have probably said, like, stick with that and stick with team sport. And I think there's a lot of life lessons in, uh, being in sports and playing as a team and winning together that you learn even now in business. And again, like I've said, it's all about the team and the people that build the product.

Sasha Sinkevich

So, where did you grow up?

Daniel Marashlian

In Sedona, Arizona, a little tourist town. When MP3s first came out, the world's largest MP3 player was called Winamp. And I think worldwide, right? It was [acquired by] AOL eventually.

Jon McLachlan

Oh, I used to use Winamp.

Daniel Marashlian

Yeah. So Winamp was out of Sedona, the team that built Winamp. And it was cool to see that as, like, you know, even a younger kid, like, you know, geeky, kind of into computers, like, whoa, this is cool, it's built where, like, you know, they were like a generation above me. But so I didn't really know them personally, but you knew them around. And it was cool to see that something like that could be built from that small town. I mean, I think there were like 8,000 people from that live in Sedona or something. So now I feel like with Drata, I think we beat that number to have the biggest tech success out of Sedona.

Jon McLachlan

So being a founder can be super stressful. Sometimes there's just like super high highs and super low lows, and there's never the same day twice. To balance that stuff out, do you use tennis now as part of your repertoire of tools to, like, unwind a little bit?

Daniel Marashlian

Yeah. Yeah, when I do, when I do play tennis, it's that, like, the rest of the world melts away, because you're only thinking about that, which is fun. But, you know, I think spending time with friends and my family, my wife, and, you know, we live in San Diego, and so going to the beach in the summer and, uh, yeah.

Jon McLachlan

Well, we have a lot of entrepreneurs that actually tune into this podcast. And this is maybe a little bit of a leading question, but you just wish that there was one tool or a product or something or a problem that someone would just fall in love with and go build the right thing already, so that you don't have the pain point anymore? Or anything like that cross your mind?

Daniel Marashlian

Yeah. I mean, the answer is yes, but then which one? It's funny, at the end of the day, while I'm a hardened technologist from development to hosting and the entire gamut, sometimes it's like I hate technology. Not the [end] product, but being in the weeds, like hosting stuff and scaling it and databases and networking. And it's just like, I just want, like, I'm a software developer by trade. Like, I just want to write code and create, and the art, the artisan of it. I don't want to know how the canvas is made. Just let me go buy a canvas and I'll use it, right? Again, I love that stuff too on the other side of my brain, because that's what I do and lead, but sometimes, like, I just want to use stuff. If you had to lay down a specific example, I would say two problems that I've faced lately. We use AWS ECS, the Elastic Container Service. And so, you know, like, if there's, if there's a fire, there's a one-line bug change, code, a line code change. Okay, that sucks. There's an incident, but I fixed it. I want it out as fast as possible. But in, like, the way that you push it up into Git, it builds the container, it releases out to ECS, it, it, like, swaps out, you know, the containers, it's like 20, 30 minutes, based on however long things take. And it's like, I need that down to, like, one minute or three minutes. So that boot time, that just, fighting fires in this containerized world is a little slower than our older days, where it's like, you know, like PHP, just push the file to the server and it's up, because it's interpreted, old-school style. So that's one. Uh, the other one, I would say, is, honestly, I think this would be a trillion-dollar idea. And I think AI is really going to help eventually solve it for people. But, uh, if I'm, we're building, we're all building software and it gets more and more complex, and the neural network of the complexity of changes are, you know, become more and more dependent on each other. So there's a new requirement that comes in, or a bug, whatever. I'm going to go fix it. I'm going to go fix this, or I'm going to add this. What does it impact? Like, as a quality person, even if you don't have manual QA people and you want to rely on software engineers and tests, or even the developers to write the tests, where do I know to go add more logic and more tests and what to look at to make sure it didn't break? And as your app is small, not that hard. Like, we're into almost four years of writing software. Crazy. Imagine getting into, like, 10 years, 20 years of a Salesforce, right? Now it works where people split it out and you have microservices and they're independent, but it still is a mesh of everything. So a tool to say, hey, you're changing this one line of code or this function, you need to go check these six spots. And it just, that time to make sure everything works. That'd be a really amazing tool.

Jon McLachlan

I would love that. This sounds magical. Would you like to leave our listeners with any words of wisdom?

Daniel Marashlian

I would say for those young entrepreneurs or individuals thinking of starting companies, my advice is it's going to be the hardest thing that you've ever done, but at the same time, extremely rewarding. Just dive in with both feet and go all in. It's tempting to sit down and turn your brain off and watch the reruns of Friends or something at night. But instead of that, learn about a new, you know, design paradigm. Learn, you know, go watch the F8 conference or whatever it may be. Just learn, keep learning. For all of you that are just getting started in your world of compliance, or even broader GRC, governance, risk and compliance, we really help make it easy. On average, it takes roughly 500 hours to maintain your SOC 2 report. We get that down to about 50 hours, right? Roughly an hour a week. And we can just kind of tap you on your shoulder when something's going on. So it, it just makes it easier.

Jon McLachlan

Amazing. Well, thank you so much again for joining us on another episode of The Security Podcast of Silicon Valley. That was Daniel, everyone, the CTO and co-founder of Drata. I'm Jon McLachlan, one of the hosts, [joined] by Sasha Sinkevich. Thank you, guys.

FAQ

Questions this episode answers

Who is Daniel Marashlian?
Daniel Marashlian is the co-founder and chief technology officer of Drata, which he started in 2020 with Adam Markowitz and Troy Markowitz. Before Drata he was co-founder and chief technology officer of Portfolium, which Instructure bought in 2019, and his earlier ventures include RapidEngage, TweetPhoto and Pelotonics. He went to the University of Arizona and grew up in Sedona, Arizona.
What does Drata do?
Drata automates compliance and trust management: it collects evidence for security controls continuously, monitors them, and helps companies earn and keep reports like SOC 2 and certifications like ISO 27001. Drata's site lists more than 8,000 customers and more than 30 supported frameworks, and it has added questionnaire automation, trust centers and AI agent governance.
Why did Daniel start Drata?
At Portfolium, university buyers kept asking for security questionnaires and a SOC 2 report, and getting one pulled three of six engineers off the roadmap. After Instructure bought Portfolium, he saw a 1,400-person company doing compliance the same manual way and decided the industry needed automation.
What is the messy middle of compliance?
It's Daniel's name for the work between the structure of a secure business and the report that proves it: the meetings, screenshots and evidence gathering that show a control operated. Drata's approach is to automate it with continuous evidence collection.
How does Drata use AI with customer data?
On the episode Daniel says Drata uses Amazon Bedrock, powered by Anthropic, and spent its first six to nine months on infrastructure that isolates, indexes and shards each customer's data. Drata's later posts describe isolated indexes per customer and models and datasets segregated to prevent cross-contamination between customers.
How long does it take to maintain a SOC 2 report?
Daniel's figure is roughly 500 hours a year by hand, which Drata says its automation brings down to about 50 hours, roughly an hour a week. Those are Drata's own estimates for its product.
Did Drata have its own SOC 2 report at launch?
Yes. Daniel says Drata used its own product to earn its own SOC 2 Type 1 report on January 14, 2021, and launched the next day. Drata's own post says it delayed its launch until it had a clean SOC 2 report in hand.
How fast did Drata become a unicorn?
Drata raised a $100 million Series B at a $1 billion valuation in November 2021, about 10 months after launching, led by ICONIQ Growth with Alkeon Capital and Salesforce Ventures. Drata called itself one of the fastest SaaS companies ever to reach that valuation.
What tool does Daniel wish someone would build?
Two. A faster way to ship a one-line fix during an incident than a 20 to 30 minute container deploy, and what he calls a trillion-dollar idea: a tool that tells you which places to check when you change one line of code or one function.
Does YSecurity work with Drata?
YSecurity runs SOC 2 programs for startups and sets up the compliance platform its clients use, Drata among them. The episode and the deep dive on this page are editorial, with Daniel's claims labeled as his and Drata's own posts cited for the public record.
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