When Snowflake, the cloud knowledge warehouse, landed a $263 million investment earlier this 12 months, CEO Bob Muglia speculated that it could be the final cash his firm would want earlier than an eventual IPO. But simply 9 months after that assertion, the corporate introduced a second even bigger spherical. This time it’s getting $450 million, as an sudden degree of progress led them to hunt more money.
Sequoia Capital led the spherical, joined by new investor Meritech Capital and current buyers Altimeter Capital, Capital One Growth Ventures, Madrona Venture Group, Redpoint Ventures, Sutter Hill Ventures and Wing Ventures. Today’s spherical brings the full raised to over $928 million with $713 million coming simply this 12 months. That’s lots of dough.
Oh and the valuation has skyrocketed too from $1.5 billion in January to $3.5 billion with right now’s funding. “We are increasing the valuation from the prior round substantially, and it’s driven by the growth numbers of almost quadrupling the revenue, and tripling the customer base,” firm CFO Thomas Tuchscherer informed TechCrunch.
At the time of the $263 million spherical, Muglia was satisfied the corporate had sufficient funds and that the subsequent fundraise can be an IPO. “We have put ourselves on the trail to IPO. That’s our mid- to long-term plan. This funding permits us to go on to IPO and provides us ample capital, that if we select, IPO can be our subsequent funding step,” he said in January.
Tuchscherer mentioned the truth is that was the plan on the time of the primary batch of funding. He joined the corporate, partly due to his expertise bringing Talend public in 2016, however he mentioned the expansion has been so phenomenal, that they felt it was mandatory to vary course.
“When we raised $263 million earlier in the year, we raised based on a plan that was ambitious in terms of growth and investment. We are exceeding and beating that, and it prompted us to explore how do we accelerate investment to continue driving the company’s growth,” he mentioned.
Running on each Amazon Web Services and Microsoft Azure, which they added as a supported platform earlier this 12 months, definitely contributed to the elevated gross sales, and compelled them to rethink the amount of cash it could take to gasoline their progress spurt.
“I think it’s very important as a distinction that we view the funding as being customer driven in the sense that in order to meet the demand that we’re seeing in the market for Snowflake, we have to invest in our infrastructure, as well as in our R&D capacity. So the funding that we’re raising now is meant to finance those two core investments,” he confused
The variety of staff is skyrocketing as the corporate provides prospects. Just eight months in the past the corporate had round 350 staff. Today it has near 650. Tuchscherer expects that to develop to between 900 and 1000 by the tip of January, not that far off.
As for that IPO, certainly that’s nonetheless a purpose, however the progress merely obtained in the best way. “We are building the company to be autonomous and to be a large independent company. It’s definitely on the horizon,” he mentioned.
While Tuchscherer wouldn’t definitively say that the corporate is trying to help a minimum of another cloud platform along with Amazon and Microsoft, he strongly hinted that such a prospect might occur.
The firm additionally plans to plunge some huge cash into the gross sales group, constructing out new gross sales workplaces within the US and doubling their presence all over the world, whereas additionally enhancing the engineering and R&D groups to develop their product choices.
Just this 12 months alone the corporate has added Netflix, Office Depot, DoorDash, Netgear, Ebates and Yamaha as prospects. Other prospects embody Capital One, Lions Gate and Hubspot.