Databricks, one of the most valuable privately held companies, on Tuesday, December 17, announced the raising of financing for $10 billion after one of the largest venture capital funding rounds in history.
The mentioned result contributed to the fact that the specified software maker’s market capitalization reached $62 billion. It is worth noting that in this case there is an illustrative example of the growing interest of investors in private companies which business is on a high-intensity upward trajectory. The corresponding tendency is largely related to the so-called artificial intelligence boom.
After receiving $10 billion in funding, Databricks can provide liquidity for current and former employees. Also, this money will allow the software developer to make acquisitions and expand the scope of overseas activities.
Last year, Databricks’ market capitalization was fixed at $43 billion. The valuation of the company’s competitor, which is Snowflake, last Monday, December 16, was about $ 57 billion.
Databricks develops software for analyzing and cleaning up data. The company also runs artificial intelligence models for customers. Databricks’ software is available on the Amazon, Google, and Microsoft clouds.
In the fiscal quarter, which ends on January 31, the company expects to generate free cash flow with revenue of $3 billion. Software maker’s revenue in the fiscal quarter, which ended in October, showed growth of more than 60% year-on-year.
Investors in the financing include Thrive Capital, Andreessen Horowitz, DST Global, GIC, Iconiq Growth, Insight Partners, MGX, Sands Capital, WCM Investment Management and Wellington Management.
It is worth noting that for several years there have been expectations that Databricks will hold its initial public offering (IPO) of shares. The corresponding expectations are inherent in technology investors. Databricks has so far refrained from making any specific comments about the potential IPO.
Ali Ghodsi, the company’s co-founder and chief executive officer, said at the Cerebral Valley AI Summit in November that if the firm was going to list, it would be in the middle of next year or something like that. It’s worth noting that this is a hypothetical reflection, not an announcement of plans.
As we have reported earlier, AI Startup Vapi Raises $20 Million.
