Fivetran, a data integration player focused on cloud data warehouses, today announced it has closed a $100M Series C funding round, led by Andreessen Horowitz and General Catalyst, and with participation from previous-round investors CEAS Investments and Matrix Partners. Fivetran says it will use the funding for global expansion, accelerated enterprise adoption, and to deepen and broaden its library of data connectors (of which it has over 140, according to the list on its Web site).
Growth in funding; growth in usage
Fivetran say it has now raised a total $163M and has a valuation of $1.2B. Fivetran’s funding fortunes seem well-correlated with the growth of the cloud data warehouse platforms its product focuses on, like Snowflake and Amazon Web Services’ Redshift. Unlike traditional data integration/data pipeline competitors, Fivetran’s approach has been to use cloud data warehouses as the collection point for data, and then let data engineers use those platforms to transform their data after it lands.
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Given the elasticity and multi-cluster capabilities of such platforms, Fivetran’s approach is a sensible, cloud-forward one. And customers certainly seem to be warming to the idea — Fivetran says that for the 12-month period ending this past February, customers expanded their usage of Fivetran by 150 percent. This calculus is based on the aggregate number of data rows managed, which the company said went from 500 billion to nearly 1.3 trillion over the one-year period. The company also said its revenue has grown by 129 percent within the past 12 months.
Approach and demand
While Fivetran started out focusing almost exclusively on data movement into the warehouse, it has expanded its capability set for transforming the data once it has landed. This part of the product is driven by SQL queries, rather than visual pipelines. That approach is a bit contrarian, but for a certain class of customer, it may be preferred.
Fivetran says its customer count now stands at over 1100, so it must be doing something right. Cloud data warehouses are a popular and growing option for customers doing analytics. Data silos are a major pain point for that same customer group. Fivetran is using the former to address the latter, and investors would seem to be rewarding the approach.