Snowflake Lands Growth Funding of $263M

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Snowflake Lands Growth Funding of $263M

Things just keep getting bigger and better for big data company, Snowflake

By Philip de Souza, February 21, 2018

Bob Muglia's Snowflake, the #1 ranked cloud data-warehouse-as-a-service, not only secured over $100 million in their Series D funding round last April ($105 million once Capital One joined-in last September), but has recently just secured another $263 million in growth funding, bringing its pre-money valuation to a whopping $1.5 billion today.

Venture capitalists involved included existing investors Iconiq Capital, Altimeter Capital, Capital One Growth Ventures, Madrona Venture Group, Redpoint Ventures, Sutter Hill Ventures and Wing Ventures, with new investment being spearheaded by none other than Sequoia Capital, who has already helped companies like Google, Apple, and Cisco reach a successful IPO.

“The biggest thing Sequoia has that will benefit our business in the short run, is they have very strong relationships with executives at tech companies,” former leader of Microsoft's Windows Server and Tools team, Muglia said. “This should carry us to the point where we could ultimately IPO the company.”

The biggest news in big data is how the shift has gradually been a move towards the cloud, but with much greater velocity over the last year. Not just for little dev projects here and there, as had been the case previously, but with the entire, core data an enterprise relies upon, completely. Cloud data warehousing has increasingly been recognized not just as the best way to lower infrastructure costs on-site, but (with services such as Snowflake's), even administration costs, all while providing the best platform for data analytics on the market.

From their own news release regarding the funding, "Snowflake continues to experience rapid growth thanks to its innovative cloud data warehouse that far surpasses the capabilities of legacy competitors. But the data warehouse was just the beginning. Snowflake continues to evolve what’s possible with data analytics, enabling enterprises to easily access critical data within their ecosystems and beyond. In the past year, Snowflake grew its customer base by 300 percent and has increased customer data stored in Snowflake four-fold."

“Data is the currency of today’s economy and the data warehouse is the engine of that economy,” Snowflake CEO, Bob Muglia said. “But legacy technologies still hinder organizations from becoming modern, data-driven enterprises. Snowflake’s vision, which began with the data warehouse built for the cloud, has gained significant traction with enterprises across dozens of industries. Today’s announcement further validates Snowflake’s continued mission to enable a true data economy by removing the barriers that prevent enterprises from easily acquiring insight from all their data no matter where that data resides.”

The funding will help Snowflake execute new and existing strategies, such as:

"Doubling down on R&D by growing Snowflake’s world-class engineering team, located at the company’s San Mateo, Calif., headquarters in the heart of Silicon Valley and its newest engineering office in Bellevue, Wash."

"Expanding current operations across North America, EU and Asia Pacific regions to address the global surge in demand for Snowflake’s data-warehouse-as-a-service, which is now available across four AWS deployment zones."

"Continuing to deliver new innovations such as The Data Sharehouse™, which further expands Snowflake’s lead over legacy cloud and on-premises solutions, while transforming what a cloud-built data warehouse can achieve by enabling live global data sharing and a true data economy."

“Similar to how Salesforce disrupted the CRM industry nearly 20 years ago, Snowflake is disrupting the data analytics market and leading the way in the modern data economy,” Sequoia Capital Partner Pat Grady said. “Every company today needs a strategy for managing data in the cloud, and as IoT has ushered in a new era of complexity, Snowflake is helping enterprises gain the most value from their data.”