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Software & services

Databricks' mega funding round paves way for $62B valuation

Databricks Inc is on course to reach a $62 billion valuation through a new $10 billion funding round.

Software maker startup Databricks unveiled the capital raise on Tuesday, which will be led by Thrive Capital and include participation from Andreessen Horowitz and DST Global.

Funding would go to “new artificial intelligence products, acquisitions, and a significant expansion of [...] international go-to-market operations,” Databricks said.

Shares held by former and current employees would also be bought back with the funds.

Databricks, a competitor to Snowflake Inc and the likes of Microsoft Corp (NASDAQ:MSFT)’s Fabric, has guided for $3 billion in annualized revenue over the year to January.

Sales at the firm, which makes software to develop artificial intelligence apps, had surged by more than 60% in its most recent quarter.

Anticipation has long built around a public offering of Databricks’ shares, with chief executive Ali Ghodsi in November hinting at next year for a float.

No details of plans for a listing were unveiled in Tuesday’s statement though.

“These guys are execution machines. They are ready to be a public company,” Thrive Capital partner Vince Hankes said.

“Raising a little capital and providing liquidity to employees takes some of that pressure off.”

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