On Monday, cloud data storage and analytics startup Snowflake announced it secured $479 million in Series G funding. Dragonneer Investment Group and Salesforce Ventures led the round, and the latter announced it would now collaborate with the San Mateo, California-based company. Following its latest cash injection, the 8-year-old firm is currently valued at $12.4 billion, up from $3.95 billion in 2018.
What Snowflake Does
Snowflake promotes itself based on three qualities; flexibility, affordability, and efficiency. The data warehouse company offers to store client data regardless of scale, meaning its partners only pay for space and computation tasks they need. Moreover, the firm provides its customers with tools that allow them to create secure internal data exchanges. As such, it gives firms the ability to access and share company information across their network seamlessly.
Also, as Snowflake is a platform-as-a-service provider, its clients don’t have to worry about digital infrastructure management.
The startup allows clients to upload data from different sources, ranging from traditional to artificial intelligence generated. The firm also designed its architecture for multi-cluster, shared data functionality so that users can create their own data lakes and pipelines.
At present, the cloud-based data company counts Adobe, Capital One, DoorDash, EA, Sony, and the University of Notre Dame among its customers.
In addition, Snowflake has configured its systems to perform storage and competition tasks separately, which allows its clients to scale up or down without disruption or downtime. It’s also worth noting the startup’s products are highly accessible. Its platform is available via Amazon Web Services, Azure, and Google Cloud Services.
Because of the affordability, efficiency, and flexibility of its services, Snowflake has received significant attention from investors. Since its founding in 2012, the firm has received $1.4 billion in funding. In 2018, the startup held a Series F round that netted it a $450 million capital infusion. That round also saw the company’s valuation jump from $1.2 billion to $3.95 billion.
What’s Next for Snowflake
Snowflake didn’t actually need its latest cash injection. CEO Frank Slootman told Crunchbase his firm is “well-capitalized” following its 2018 funding round. Instead, the executive explained it took on more outside money to facilitate its partnership with Salesforce.
Right now, Snowflake is keeping the specifics of its new corporate alliance under wraps. The firm plans to present details about the new relationship at its June Snowflake Summit conference. However, Slootman noted his company regularly receives requests to integrate with the customer relationship management software giant. The startup’s new arrangement will allow it to satisfy its clients.
“At a high level, the partnership is about allowing Salesforce data to very easily, seamlessly, frictionlessly be shared on the Snowflake platform,” said the chief executive.
The company also has an interest in preparing an initial public offering (IPO). Slootman stated his startup could launch an IPO as early as this July. However, the CEO said Snowflake is currently focused on acquiring more “high-value data assets.” Thanks to its new partnership with Salesforce, the startup is well on its way to achieving that goal.