Databricks Raises @ $29B

Databricks is raising over $2 billion in a new funding round, people familiar with the deal said, a massive haul that will give the cloud-based data analytics company a $29 billion post-money valuation. (...) Wall Street heavily anticipates a Databricks IPO sometime this year.

Just another observation to feed into your neural net—the data equities market right now is very hot (also see: Starburst).

Here's why you should care. I've talked before about Carlotta Perez' framework on how technological change happens: first you get a bubble, then a crash, then a "golden age." Essentially, the capital rushing in during the bubble gets deployed in building net new technology and infrastructure. Whether or not the financial asset itself is overvalued is kind of besides the point—the dollars still go into funding lots of new R&D.

In this particular case I have absolutely zero opinion on what the "right" valuation is for companies in data today (that question feels boring), but I do get to see very up-close-and-personal where the capital is going. For example, Databricks is investing a tremendous amount in SQL Analytics (and Delta Lake, the open source technology it's built upon). Delta Lake is awesome.

IMO, this is wind in the sales of every data practitioner today. Capital markets have decided that they want all of us to have better tools.


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