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May 23, 2024

Sigma Secures $200M Round to Advance Its BI and Analytics Solutions


Sigma Computing, a cloud-based analytics solutions provider, has raised $200 million in Series D funding to further advance its efforts in broadening BI use within organizations by enabling users to query and analyze data without writing code. 

The latest rounding of funding takes the vendor’s total funding to $581.3 million with a valuation estimated to be around $1.5 billion, a staggering rise of 60% since the last funding round in 2021. The steep rise in valuation is partially a result of rising demand for greater productivity and monetization in the era of cloud data transition. 

Spark Capital and Avenir Growth Capital led the Series D funding round with additional investments from new investor NewView Capital. All previous investors participated in the round, including Sutter Hill Ventures, D1 Ventures, Altimeter Capital, Xn Ventures, and Snowflake Ventures. Sigma will use the new funding towards data application development, AI infrastructure, business user adoption, and enterprise-wide collaboration. 

“Unique features like Sigma’s Input Tables allow teams to effortlessly incorporate deeper context into their analyses by bringing their own data directly into the cloud data warehouse, all without writing any code. That kind of capability spreads like wildfire through enterprises and unlocks a new level of decision-making and collaboration,” said James Kuklinski, General Partner, Spark Capital. 

Founded in 2014, Sigma initially offered only basic BI and analytics tools. However, the company has expanded its offering significantly and now offers a wide range of products and services including deep data exploration and visualization tools. Sigma’s offerings are geared toward processing data in cloud platforms such as Databricks and Snowflake. Users can use SQL, Python, or a graphical interface to interact with their data. 

One of the key focus areas for Sigma has been to enable business decision-makers to have access to powerful analytics tools through an easy-to-use interface. “For the first time, people in charge of making business decisions can access their organizations’ data as if it were in a spreadsheet, building conviction and generating insights faster than ever before,” said Jared Sleeper, Partner, Avenir Growth Capital.

Sigma’s approach to processing information offers a key advantage. Historically, BI and analytics platforms required data to be exported from a data warehouse for processing. However, Sigma’s platform doesn’t require data to be moved out of the data warehouse. This helps improve security and efficiency. 

The last year has been particularly remarkable for Sigma. It has expanded its partner network, achieved record growth in revenue, and secured the acquisition of a new logo. Last month, Sigma introduced new AI features to enhance the platform’s UI and functionality.  

While Sigma has been on a roll, the platform faces stiff competition from companies such as Microsoft Power BI and Tableau, who have intensified their focus on developing innovative and user-friendly data analytics tools. 

It helps that the BI sector is growing at a rapid pace and there might just be enough for companies to carve out their niches and specialize in various aspects of BI. The BI sector is expected to grow from around $33 billion in 2024 to $61 billion in 2024. However, Sigma will be keen to capitalize on its momentum, and with the $581 in funding, it has the capital to fuel its growth.

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