Venture Capital: DataRobot Banks $300M Series G; Acquires Algorithmia
DataRobot is a leader in Augmented Intelligence for enterprises and the Series G round valued it at $6.3 billion, post-money.
DataRobot announced today its raise of $300 million in a Series G round led by existing investors Altimeter Capital and Tiger Global and joined by new investors Counterpoint Global (Morgan Stanley), Franklin Templeton, ServiceNow Ventures, and Sutter Hill Ventures. The financing came simultaneously with news of DataRobot’s acquisition of the machine learning operations (MLOps) platform, Algorithmia. (DataRobot)
“This new investment further validates our vision for combining the best that humans and machines have to offer in order to power predictive insights, enhanced data-driven decisions, and unprecedented business value for our customers,” said Dan Wright, CEO of DataRobot.
Use of funds
The AI startup will use the proceeds of the round, which valued it at $6.3 billion (post-money), for developing further its Augmented Intelligence platform and to expand its reach across the world. The startup will also further build out its go-to-market team, including hiring across North America, EMEA, and Asia Pacific/Japan to serve the company’s global customer base.
The company’s platform assists enterprises of all sizes in product development, customer relationship management, demand forecasting, and cost control. A third of the Fortune 50 currently utilize this service.
“Since day one, DataRobot has been committed to the democratization of trusted AI and delivering massive value across every industry,” said John Curtius, Partner, Tiger Global.
“With the breadth of its platform and the bench of talent, we saw a unique opportunity to invest in DataRobot that we couldn’t pass up — it’s actually the first time we’ve made an investment at this stage of a company’s growth,” said Chad Peets, Managing Director of Sutter Hill Ventures.
According to VentureBeat, DataRobot has enjoyed triple-digit recurring revenue growth since 2015. More than 2 billion models have been built on its platform to date.
Acquisition of Algorithmia
DataRobot also acquired Algorithmia, an MLOps platform that aims to bring models into production with “enterprise-grade” security and governance, for undisclosed terms.
“Algorithmia’s people and technology significantly enhance our mission to rapidly move from experimental to applied AI by helping customers bring every model into production with rapid time to value,” said Dan Wright.
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