Databricks raises $500M, valuation at $43B

Databricks, a data analytics and AI software company, just secured $500M in a Series I round, propelling their valuation to $43B. 💥

• Valuation: Databricks has managed to increase their valuation by $5B since their last funding round in August 2021.

• Investors: The Series I round is a fusion of pre-IPO funding and strategic investment. On the pre-IPO side, we see players such as T. Rowe Price, Morgan Stanley, Fidelity, and Franklin Templeton. On the strategic front, Capital One Ventures and Nvidia join the ranks.

• Other Financers: Other contributors to this round include firms Andreessen Horowitz and Tiger Global.

• Market Standing: Databricks has shown significant strength in the market, reporting a revenue run rate exceeding $1.5B in Q2 (ending July 31). It has amassed over 10,000 global customers, with over 300 high-ticket clients churning out $1M or more annually for its software and services.

• Possible IPO: Operating at a revenue multiple of 29x, the company is plotting a slow-and-steady strategy, aiming to grow further before stepping into the public market.

This new influx of capital is a boost for Databricks, providing them with the means to strategize and stake their claim in the AI market.