Anomalo has closed a $5.95 million seed round to help companies validate the data they use.
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The round was raised in two tranches—a $2.75 million initial round led by First Round Capital and a $3.2 million round this summer led by Foundation Capital, with First Round Capital participating. Both rounds also include several Silicon Valley angels and participation from Village Global.
The San Francisco-based company allows users to continuously inspect and validate the data coming into their warehouses, while also fixing potential issues before they lead to bad decisions or product failures.
“As more and more critical business decisions are data-driven, the quality of the data, and identifying and maintaining high data quality, has emerged as a very large, unmet need,” said Phin Barnes, a partner at First Round Capital.
“Anomalo solves this problem by allowing companies to validate their data before they use it,” he adds. “It turns out having data you can trust is even more valuable than the processes and tools to support data-driven decisions.”
Data validation is simply the process of making sure a set of data is correct, said co-founder and CEO Elliot Shmukler.
The Anomalo platform—which sits inside a company’s data warehouse—allows users to configure specific rules to validate data, while also using its own machine-learning tools to set rules automatically derived from historical data.
While there are other small startups in the space, as well as older extract, transform and load software tools produced by companies like Fivetran, Alooma and Oracle, it is Anomalo’s ability to use machine learning to set rules that differentiates the company, Shmukler added.
Founded in 2018, data validation is still in the “early days” as a sector, Shmukler said.
Anomalo’s current product only has been in the market for about four months and the five-employee company has about “a handful” of customers, he added
While the solution can be used in a variety of verticals, the company initially will focus on e-commerce, social media, adtech, fintech and others with complex data streams as it grows its market, Shmukler said.
The company will use the seed money for product development and initial go-to-market activities and could look for a Series A next year as it builds a customer base, Shmukler said.
“We want to be at a place where we have 10 to 20 significant enterprise customers,” he said. “That will show we have market fit.”
Illustration: Li-Anne Dias.
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