Venture Capital: The Pandemic-Triggered Shift To Cloud Boosts Growth At Cockroach Labs
Cockroach scores $160 million Series E at a $2 billion valuation tag.
Cockroach Labs, which offers CockroachDB, the leading cloud-native distributed SQL database, says it more than doubled revenues and customers over the past year after the events of 2020 forced businesses to digitize and move to the cloud. Investors poured $160 million into the company’s Series E round, valuing it at an impressive $2 billion. (CISION PRNewswire)
The latest round was led by Altimeter Capital. New investors Greenoaks and Lone Pine, and existing investors Benchmark, BOND, FirstMark, GV, Index Ventures, and Tiger Global, also chipped in.
The valuation in the latest round is twice that of the Series D round in May 2020.
Cockroach has now raised a total of $355 million.
Transactional databases in the cloud
Cockroach is at the forefront of the latest shift. Businesses are now moving their transactional data (after initial shifts of application and analytical data) to the cloud.
Calling transactional data the “lifeblood of a company’s operations,” Cockroach says its CockroachDB cloud DBMS product helps organizations scale fast with unmatched elasticity, survive anything through a failure-resistant architecture, and thrive everywhere with multi-cloud flexibility and data-locking for regulatory compliance.
“The financial ledgers, every bit of our supply chain, this is traditionally the province of databases like Oracle and now that’s moving to the cloud,” Spencer Kimball, co-founder and CEO of Cockroach, told Crunchbase.
Cockroach says it is looking at a massive market opportunity. Gartner forecasts that by 2022, 75% of all databases will be deployed or migrated to a cloud platform.
By 2023, cloud DBMS revenue will account for 50% of the total DBMS market revenue, currently estimated at $55.4 billion.
“Cockroach Labs has quickly become the cornerstone database for all transactional workloads. It offers a disruptive leap forward in scalability, reliability, and performance,” said Kevin Wang of Altimeter Capital, in a statement.
“The story of transactional SQL workloads moving to the cloud is still largely unwritten and represents a tremendous opportunity for the next Oracle-like business to emerge,” said Neil Mehta of Greenoaks Capital. “CockroachDB’s high availability, strong consistency, and low latency allow them to address the lion’s share of these relational workloads.”
The company counts Equifax (NYSE: EFX), Bose, Comcast (NASDAQ: CMCSA), and some of the largest companies in banking, retail, and media amongst its customers.
Use of funds
Cockroach intends to use the funding to further boost its growth trajectory, and to invest in product development.
It also intends to expand its workforce in every department.
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