Databricks has managed to raise more than 469 million euros ($500 million) in a recent Series I investment round. This brings the value of the data lakehouse and AI specialist to the previously desired amount of $43 billion.
Experts say it is extraordinary that the data lakehouse and AI specialist was able to boost its market value with this investment round. As many other and in most cases, larger start-ups are currently seeing their market value drop because investment money is not forthcoming.
Possible preparation for an IPO?
It is also notable that the investments in this round were made by investment companies hoping to initiate an IPO. These include T. Rowe Price, Morgan Stanley, Fidelity and Franklin Templeton.
Ali Ghodsi, CEO of Databricks, has so far always announced that the company is not yet working on an IPO. The stock market climate would still be unfavourable at this time. Moreover, the status as a private company would give many advantages, including easier innovation.
Other investors in the latest round were present from a more strategic point of view. They included private equity firm Capital One Ventures and chip and AI giant Nvidia. Investors such as Andreessen Horowitz and Tiger Global also participated.
Use obtained capital
It is not known for which purposes Databricks will use the obtained capital. It may be used for strategic goals, including perhaps some acquisitions of other interesting parties.