Automated data integration provider, Fivetran recently announced that it has raised $100mn in Series C financing, led by Andreessen Horowitz (a16z) and General Catalyst. The funding round also saw participation from existing investors CEAS Investments and Matrix Partners.
The company said it will use the funding to accelerate global expansion, drive adoption in the enterprise market, and continue building out the depth and breadth of its data connectors.
With the recent funding, the company’s total fundraising now stands at $163mn with a current valuation of $1.2 billion. With the new valuation, Fivetran becomes the latest addition to the list of unicorns in the cloud business.
Fivetran solves a key problem faced by companies today: centralizing data for analysis without wasting engineering resources on building and maintaining individual connectors. In a recent survey by Dimensional Research, data analysts reported spending only half their time actually analyzing data, and 68 percent have profit-driving ideas but little time to implement them. More than 60 percent of respondents reported wasting time waiting for engineering resources several times each month and often spending one-third of every workday just trying to access data. Fivetran gives analysts and data engineers more time for value-added work by automating the integration and maintenance of every data pipeline to ensure reliable, accurate access to data.
“Fivetran completely changed our data extraction workflow. We save a tremendous amount of time by eliminating the need to build and maintain data pipelines internally,” said Evin Anderson, data engineering manager for Autodesk.
He further added,“Fivetran is helping us scale as we acquire new businesses and grow rapidly. We can now focus on data analysis and science by building out dashboards and a machine-learning infrastructure.”
Fivetran is growing rapidly, landing new customers quarter over quarter, as well as expanding the use of Fivetran across current customers. From February 2019 – February 2020, customers expanded their usage of Fivetran by 150 percent, with rows of data managed growing from 500 billion to nearly 1.3 trillion during the time period. Within the past 12 months, new customer growth has increased by more than 75 percent.
The company’s total customer base now stands at over 1,100 companies, including global brands such as BJ’s Restaurants, ClassPass, Conagra Brands, Databricks, DocuSign, Forever 21, Lime, Square, Udacity and Urban Outfitters. During the same period, revenue has grown by 129 percent. Based on strong customer reviews, Fivetran earned the 2019 Gartner Peer Insights Customers’ Choice distinction in the Data Integration Tool category.
Fivetran has also continued to expand around the world, recently opening a new office in Sydney, Australia to continue growing its footprint in the Asia-Pacific region. Fivetran opened new offices in Germany (Munich) and London, and expanded its India operations with a new office in Bengaluru in the past year as well.
“From the start, our vision has been to make access to data as simple and reliable as electricity,” said George Fraser, CEO of Fivetran. “Besides conducting back-channel calls with customers as part of their fundraising due diligence, every investor cited our Glassdoor reviews and the unique culture we’ve created at Fivetran. That culture has enabled us to execute consistently since the beginning and is critical as we continue to pull away from the pack in our pursuit to connect every data source and make them all work perfectly.”
“Fivetran quickly established itself as the clear leader in this incredibly important space and has become the de facto standard for data integration in the modern data stack,” said Andreessen Horowitz general partner David George, who leads the firm’s growth fund.
“They’ve also continued to perfect their automation process, providing customers with reliable, real-time data. All this, during a period of uncertainty, speaks volumes about just how tremendous this company is and how well the product works,” he added.
Trevor Oelschig, Managing Director at General Catalyst Growth, will join the Fivetran board. “When you find a company abstracting away complexity to create a service that’s approachable with a fast time-to-value, you know they’re on to something. That’s exactly what we see with Fivetran,” said Oelschig. “Every company needs to be data-informed to compete. Fivetran keeps that data flowing in a transparent, self-serve, and cloud-native way. What we heard over and over again from their customers: Fivetran just works.”
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.