This data analytics start-up is eyeing a $100B valuation
What's the story
Databricks, a leading analytics firm based in San Francisco, is looking at a whopping 61% jump in its valuation to over $100 billion. The move comes as part of a new funding round and highlights the growing investor interest in artificial intelligence (AI) start-ups. The company has already signed a term sheet for its Series K round but has not disclosed how much it plans to raise.
Clientele and funding
Impressive growth and funding history
Databricks boasts an impressive clientele of 15,000 customers including big names like Block, Shell, and Rivian. The firm had raised $10 billion in one of the largest venture capital funding rounds late last year, which had valued it at $62 billion. Now, with this new funding round, Databricks hopes to further boost its valuation while continuing to innovate in the AI space.
Strategic direction
Plans to invest in product development and acquisitions
The company plans to use some of the new funds for product development and mergers and acquisitions in the AI sector. This comes as businesses and governments around the world are racing to harness efficiencies from this emerging technology. "Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies' data into goldmines," said Ali Ghodsi, co-founder and CEO of Databricks.
Investment climate
Start-ups opting to remain private amid uncertain market conditions
In recent years, many start-ups have opted to remain private for longer due to high interest rates and an uncertain market appetite for initial public offerings (IPOs). However, capital is still available for bigger late-stage rounds.