Automated Data Integration Firm Fivetran Secures $ 565 Million Funding • The Register
Automated data integration firm Fivetran has confirmed a funding round of $ 565 million, valuing the company at $ 5.6 billion, roughly the GDP of Montenegro.
Meanwhile, the company founded in 2013 used some of its start-up capital and purchased data replication company HVR, which uses log-based change data capture (CDC) technology, as part of the process. ‘A cash and stock deal worth around $ 700 million.
The investment arm of web pioneer Marc Andreessen (a16z) led the Fivetran funding round, which also included General Catalyst, CEAS Investments and Matrix Partners, and brings total seed capital to $ 730 million to date.
Promising pre-built connectors, automated schema migration and SQL transformation, Fivetran, which was founded by CEO George Fraser and COO Taylor Brown, counts sportswear maker ASICS, Autodesk, BJ’s Restaurants, DocuSign and the giant among its clients. from Lionsgate Media.
The company says its technology offers out-of-the-box connectors that automatically adapt to changing schemas and APIs, ensuring consistent and reliable access to data, saving data managers’ time. data warehousing and analysis issues.
In a preconceived statement, Martin Casado, general partner at Andreessen Horowitz, said: “Fivetran solves the complex challenge of scaling and automating data integration better than anyone, and joining forces with HVR will expand Fivetran’s capabilities to meet performance and safety. business requirements. “
Fivetran has made strides in recent years, hooking its cart to another data-of-the-day darling, Databricks, now valued at $ 38 billion.
Earlier this year, Gartner gave the company notable mention as one of the technologies to consider outside of the data management tools of major cloud vendors.
Despite the enthusiasm of investors, Fivetran faces challenges. Namely, cloud providers and other cloud-based data warehousing companies could go eat their lunch.
For example, Snowflake launched its own ETL tools, hoping that data engineers, data scientists, and developers will use ETL / ELT, data preparation, and feature engineering tools in the Snowflake environment rather than to use third-party tools.
At the time, Philip Howard, research director at Bloor Research, named Fivetran and Matillion as companies that might find the move to be a challenge for their future growth strategies. ®