Data Intelligence Technology Provider Alation Raises $123M in Latest Funding Round
Software investment firm Thoma Bravo, whose portfolio of companies includes Qlik and Talend, was among the Series E investors that pegged Alation’s valuation at more than $1.7 billion.
Data intelligence software developer Alation has raised $123 million in a Series E funding round, which the company will use to accelerate its global expansion and continue its strategic product development efforts.
The impressive funding round comes as venture capital becomes increasingly difficult to find given the current uncertain state of the economy. The late-stage funding round brings the Redwood City, Calif.-based company’s total funding to $340 million and increases its valuation to more than $1.7 billion.
The additional funding will be used to increase product-focused research and development and possibly for acquisitions to expand Alation’s technology portfolio, the company said in a statement.
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The company also plans to grow its employee base, which grew by 75% over the past year to more than 700 worldwide, particularly by adding development engineers, deployment and support representatives.
Alation develops a number of software products, including data catalogs, data governance, and data search and discovery tools – all under the broader category of “data intelligence” – that help businesses and organizations to find, understand and manage the increasingly huge volumes of data they possess. .
IDC estimates the data intelligence and integration software market at $7.9 billion and projects it to grow to $11.6 billion over the next four years.
“We raised $123 million because we wanted to continue investing and giving our customers the world-class data intelligence experience they deserve,” said Alation co-founder and CEO Satyen. Sangani, in a press release.
“The modern business needs data in good times…and even more so in bad times. With a challenging economic outlook, companies are turning to their data to orient themselves, improve operational efficiency, and gain or maintain competitive advantage,” said the CEO. “Alation makes this happen consistently, with customers increasing their spending year over year. Our business cards are consistent ROI, engagement and adoption. This latest round of funding will help us move even faster, so that more organizations can harness the power of their data and convert this wealth of information into usable and trusted insights.
The funding comes after five consecutive quarters of accelerated annual growth for Alation, including the recent surpassing of $100 million in annual recurring revenue, according to the company.
The funding round was led by Thoma Bravo, Sanabil Investments and Costanoa Ventures with participation from new investor Databricks Ventures. Others who participated in the round. Including some previous investors including Dell Technologies Capital, Hewlett Packard Enterprise, Icon Ventures, Queensland Investment Corp., Riverwood Capital, Salesforce Ventures, Sapphire Ventures and Union Grove.
Software investment firm Thoma Bravo is particularly active in big data, holding investments in business intelligence software company Qlik, ETL software developer Talend and data platform providers Starburst and Imply.
“As companies pursue their digital transformations, capturing and interpreting high-quality data is essential for decision-making and creating value for stakeholders,” said Robert (Tre) Sayle, a partner at Thoma Bravo, in the press release. “Data intelligence is a high growth market and Satyen and his talented team have built a leading platform trusted by businesses around the world.”
Alation also noted that the Databricks investment will expand the two companies’ longstanding partnership, which includes integrations between their two product lines, joint go-to-market initiatives and more than 100 shared customers.