Cockroach Labs raised $86.6 million in its Series D round, bringing its total funding to $195 million.
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Cockroach Labs’ Cockroach DB helps companies move and manage transactional data to the cloud. It’s used at companies like Bose and Comcast, and is backed by investors including Benchmark, Bond, Altimeter Capital and Index Ventures.
The funding will be used for product, engineering and marketing, CEO Spencer Kimball said in an interview with Crunchbase News.
Kimball said he looks at the funding as needing to be directly deployed for Cockroach Labs to compete with the major players in the space.
“Legacy players have long dominated the enterprise software market,” Altimeter Capital partner Kevin Wang said in a statement. “With recent investments in companies like Confluent, Snowflake, and now Cockroach Labs, we’re seeing huge market disruption as enterprises move to the cloud and build on a modern tech stack, replacing legacy companies, who are struggling to adapt.”
“We can move faster than them from a product and strategic perspective, but you need engineers and you need designers,” Kimball told Crunchbase News.
Years ago, companies used to rent their own space for data centers. Now, it doesn’t make sense for a company, no matter how large, to specialize and run its own data center, according to Kimball. That’s where companies like Cockroach Labs come in.
“Everything is sort of converging on the idea that a company should focus more on their business-use case and the things that aren’t as critical to that, get somebody else to do it,” Kimball said.
The company says it has seen year-over-year commercial customer growth of 295 percent. First-year customers have also renewed at a rate higher than 90 percent and increased their usage two times over.
Cockroach Labs last raised money with its Series C round in August 2019, when it brought in $55 million, according to Crunchbase. The New York-based company first raised its Series A in 2015.
Illustration Credit: Li-Anne Dias