Snowflake Closes $450M Funding for Cloud Data Warehousing
SAN MATEO, Calif. Snowflake Computing, the only data warehouse built for the cloud, today announced it has closed $450 million in additional growth funding led by Sequoia Capital. The remainder of Snowflake's existing investors also participated: Altimeter Capital, Capital One Growth Ventures, ICONIQ Capital, Madrona Venture Group, Redpoint Ventures, Sutter Hill Ventures and Wing Ventures. New investor Meritech Capital also joined this round, which raises Snowflake's pre-money valuation to $3.5 billion. This is the company's second financing announcement in 2018, bringing Snowflake's total amount raised to $923 million.
The data warehouse market is expected to grow by more than 40 percent, from $14 billion in 2017 to $20 billion in 2020, according to global market intelligence firm IDC. In addition, multiple global research and market intelligence firms have revealed that only a small fraction of big data initiatives are successfully deployed to production. These figures reveal the increasing demand for a modern data warehouse as legacy cloud and on-premise solutions continue to provide limited insight from limited data to a limited number of users in the enterprise. Snowflake's cloud-built data warehouse removes those barriers, so all business users gain limitless insight from all their data, quickly, and at a fraction of the cost of legacy solutions.
Snowflake is a values-based company, and its first value is to always put the customer first. Since the general availability of its offering in mid-2015, Snowflake has earned the trust of more than 1,000 active customers and continues to grow rapidly. New customers in 2018 include leading brands such as Netflix, Office Depot, DoorDash, Netgear, Ebates and Yamaha. The power, performance, flexibility and infinite elasticity enabled by Snowflake's cloud-built architecture will continue to drive the company's growth and equip Snowflake to meet the many use cases that a cloud-built data warehouse offers.
In addition, Snowflake recently announced its availability on Microsoft Azure and its continued support for Amazon Web Services (AWS). Providing multiple options for customers continues to increase Snowflake's market opportunity for organizations that prefer a specific cloud provider, or require a cloud-built data warehouse for a multi-cloud strategy.
Today's funding will help Snowflake execute new and existing strategies, such as:
- Continuing to expand its multi-cloud strategy. With Snowflake now available on Microsoft Azure and AWS, customers can choose Snowflake and the cloud infrastructure platform(s) that best fit their needs.
- Growing Snowflake's sales teams across the US and around the world to meet the increasing demand for the only cloud-built data warehouse.
- Investing further in Snowflake's data warehouse-as-a-service by growing the company's world-class engineering team, located at its San Mateo, California headquarters in the heart of Silicon Valley, at Snowflake's engineering office in Bellevue, Washington, and at the company's newest engineering location planned for Berlin, Germany.
- Continuing to solve customers' biggest data challenges by delivering innovations such as Snowflake Data Sharing, also known as The Data Sharehouse, which further expands Snowflake's lead over legacy cloud and on-premise solutions.