Morning Report: Why IPO when you could just raise another $450 million?
Public cloud stocks didn’t do too well yesterday, but today, private cloud companies aren’t feeling the burn.
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A cloud computing company called Snowflake Computing has bagged $450 million in new capital at a $3.95 billion valuation, post-money. The money comes primarily from Sequoia Capital, with participation from previous investors Madrona Venture Group, Redpoint Ventures, Meritech Capital Partners and others.
The company raised $263 million just nine months ago. And, according to GeekWire, it was planning to go public instead of raising again while private. Snowflake has, understandably, pushed that idea to 2020.
According to VentureBeat Snowflake sells database software that runs on Amazon Web Services and Microsoft Azure, and is moving into data-sharing partnerships. The company expects its revenue to quadruple by the end of the fiscal year and has a customer base of 1000, according to the Wall Street Journal.
That sounds like a big sales push, and now the company has the money to fund it. As for its 2020 IPO plans, it must hope that yesterday’s dip doesn’t become the new normal.
Illustration Credit: Li Anne Dias