Business

Databricks raises $1B at $28B valuation as it reaches $425M ARR


Databricks also raised part of the capital from major cloud vendors including AWS, Alphabet via its CapitalG vehicle, and Salesforce Ventures.


Other prior investors including a16z, T. Rowe Price, Tiger Global, BlackRock, and Coatue were also involved along with Alkeon Capital Management.


The company makes money by offering each of those open source products as a software service and it’s doing exceedingly well at it, so much so that investors were tripping over each other to be part of this deal.


The extra $800 million that the company raised will be used for M&A opportunities with an eye on talent, spend on establishing a Lakehouse concept, international expansion, while also expanding its engineering team, the CEO said.


That means that companies that want to lead in this space will have to stay on the bleeding edge of their market or fall back swiftly.


The Databricks model appears to be working well, with the company closing 2020 at $425 million in annual recurring revenue, or ARR.






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