Data and AI company Databricks recently announced a Series I funding round at over $500 million. This funding round values the company at $43 billion and establishes the price per share at $73.50. This funding round was led by funds and accounts advised by T. Rowe Price Associates, which is joined by other existing investors, including Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, funds and accounts managed by Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, Franklin Templeton, GIC, Octahedron Capital and Tiger Global and new investors Capital One Ventures, Ontario Teachers’ Pension Plan and NVIDIA.
Databricks’ Lakehouse unifies data, analytics, and AI on a single platform so customers can govern, manage, and derive insights from enterprise data and build their generative AI solutions faster. And the support from Databricks’ financial and strategic partners comes on the heels of its Q2 momentum (ended July 31, 2023), which includes:
1.) Crossed $1.5 billion revenue run rate at over 50% revenue year-over-year growth, with the second quarter representing the strongest quarterly incremental revenue growth in Databricks’ history
2.) Ended the quarter with over 10,000 global customers, including >300 customers consuming at over $1+ million annual revenue run-rate
3.) Achieved record Non-GAAP subscription gross margins of 85%
4.) Closed acquisition of MosaicML, a leading generative AI platform
5.) Delivered 20 product and feature releases at the sold-out Data and AI Summit in June with over 30,000 global attendees
KEY QUOTES:
“The commitment from long-term focused strategic and financial partners reflects Databricks’ continued momentum, the rapid customer adoption of the Databricks Lakehouse, and the success customers are seeing from moving to a unified data and AI platform. Databricks and NVIDIA are building transformative AI technology, and we’re excited about the business value and innovation we can bring to our customers.”
– Ali Ghodsi, Co-Founder and CEO of Databricks
“Enterprise data is a goldmine for generative AI. Databricks is doing incredible work with NVIDIA technology to accelerate data processing and generative AI models.”
– Jensen Huang, founder and CEO of NVIDIA
“Data and AI have rapidly become the centerpiece of many business strategies. Databricks has not only pioneered the Lakehouse category with a world-class team and product, but it is now also at the forefront of Generative AI for the enterprise. We’re proud to extend our investment at such a pivotal time for the company, its customers, and the data and AI industry.”
– Alan Tu, Lead Private Equity Analyst, T. Rowe Price Associates
“Teachers’ Venture Growth is excited to invest in Databricks and sees tremendous growth potential for the business as enterprises increasingly deploy AI across their operations. As investors focused on long-term value creation, we look forward to working with Ali and Databricks’ strong management team on the next phase of their growth journey.”
– Olivia Steedman, Executive Managing Director, Teachers’ Venture Growth at Ontario Teachers’
