Startups

DataRobot Raises $206M To Make Artificial Intelligence More Than Just A Buzzword

Whether you’re a Walmart or the Chicago Bulls, Boston-based DataRobot wants to help companies use data better to save revenue and make their enterprise teams more productive.

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And the artificial intelligence company just raised a $206 million Series E, more than double its round prior, to help implement its vision.

This financing round was led by Sapphire Ventures, with participation from Tiger Global Management, World Innovation Lab, Intel Capital, NEA, Meritech and many others.

DataRobot, which started in 2012 in West Hartford, Conn., now has $431 million in venture-backed funding to date. Founded by Tom de Godoy and Jeremy Achin, the company claims it can help “customers rapidly turn data into value.” Think building and deploying machine learning models, or monitoring and governing AI across multiple infrastructures. Customers include Deloitte and Kroger.

The company claimed it has had triple-digit annual recurring revenue growth every year since 2015, in a press release.

A Hungry Robot

In the release, DataRobot said the new funding will be used to grow the company, and specifically, to help fuel acquisitions.

In June, the AI company acquired ParallelM, a Santa Clara machine learning company. Earlier this year, DataRobot also acquired Cursor, a San Francisco analytics platform. Other investments include Nexosis, a machine learning API startup, in July 2018 and Nutonian, an AI  modeling engine company, in May 2017; it has done four deals in approximately two years, based on Crunchbase data.

To Close

DataRobot’s business pitch to investors, I’d imagine, was pretty clear: it’s trying to make everyone’s favorite buzzword into real results. Now it’s time to see whether DataRobot will effectively use the fresh cash to expand not just inward, but outward as well.

Illustration: Li-Anne Dias

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