Data analytics startup receives largest VC deal of the year

An 11-year-old Silicon Valley startup providing data analytics software closed one of the largest venture capital funding rounds of the year and is contemplating an IPO for 2025.

Databricks has secured $10 billion in new funding from prominent VC firms like Andreessen Horowitz and Thrive Capital. Its valuations skyrocketed to $62 billion under CEO Ali Ghodsi’s leadership and became one of the most valuable companies in the world.

The new funding is among the largest in the history of venture capital and is also one of the biggest fundraising rounds in the history of Silicon Valley.

Initially providing its software, which processes massive data sets, for free, Ghodsi turned the tide by introducing premium features and ramping up sales efforts. A $100 million sales partnership with Microsoft Azure in 2017 helped establish Databricks in the cloud space.

AI engineers swear by its data-crunching capabilities, saying it’s indispensable for their work.

The company also implemented aggressive cost-cutting strategies and made some acquisitions, like buying AI startup MosaicML for $1.3 billion and a $2 billion bid for Tabular to outpace rival Snowflake.

CEO Ghodsi shared his board presentations with all staff to ensure everyone’s goals were aligned.

Databricks’ clients include Walgreens, Rivian and MLB’s Texas Rangers. They use its services for solutions ranging from inventory forecasting to battery optimization.