Cloud Data Integration Race Heats Up
Fivetran, the up-and-coming data integration specialist, announced a $100 million funding round this week as it sharpens competition with rivals such as Alooma and Stitch to provide integration services for cloud data warehouse operators.
Oakland-based Fivetran has so far raised more than $163 million in venture funding, and claims a valuation of $1.2 billion. That valuation has been driven in part by the company’s transition from a subscription pricing to a consumption-based model increasingly offered by cloud data vendors.
The Series C round was led by Andreessen Horowitz and General Catalyst Growth along with existing backers CEAS Investments and Matrix Partners. Trevor Oelschig, managing director at General Catalyst, will join Fivetran’s board.
The funding will be used to expand its line of data connectors, the company said Tuesday (June 30).
Fivetran is among a growing list of startups that along with data integration leaders like Talend and its Stitch unit offer automated connections to siloed data. The goal is linking any data source to any warehouse, especially cloud-based repositories, to accelerate data access.
Fivetran specializes in automating the connections used to synchronize data from cloud applications, databases and event logs into data warehouses. The streamlined data extraction workflow, for example, helps eliminate the need to build internal data pipelines.
“Fivetran has continued to grow rapidly as customers see the opportunity to reduce their total cost of ownership by adopting our product in place of highly customized, in-house ETL pipelines that require constant maintenance,” Fivetran CEO George Fraser said in a blog postannouncing the funding round.
The company counts more than 1,100 customers, with revenue growing at a rate of 129 percent. Between February 2019 and February 2020, Fivetran said its volume of managed data grew from 500 billion to 1.3 trillion rows.