Databricks reportedly closing on $9.5B mega funding round - SiliconANGLE
Dec 16, 2024 - siliconangle.com
Databricks Inc., a big data software company, is reportedly nearing the close of a significant funding round that could add over $9.5 billion to its balance sheet, making it one of the largest venture capital rounds in history. This funding round, led by Thrive Capital with participation from existing investors like Andreessen Horowitz and GIC, is expected to value Databricks at over $60 billion. The company, which has expanded into the AI industry, is projected to generate more than $3.8 billion in revenue in the next fiscal year. Additionally, Databricks is discussing a $4.5 billion debt financing raise. The funds will be used to buy back expiring restricted stock units from early employees and issue preferred shares to new investors.
The move mirrors a similar strategy by Stripe Inc. and highlights the strong investor interest in AI companies, as seen with recent fundraises by OpenAI and Elon Musk’s xAI Corp. Despite the enthusiasm, Databricks appears in no hurry to go public, even with predictions of a resurgence in IPOs next year. The company is seen as a primary competitor to Snowflake Inc., a publicly traded data warehouse firm. The funding round underscores the ongoing venture capital interest in AI and data analytics firms.
Key takeaways:
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Databricks is reportedly closing on a $9.5 billion funding round, which is one of the largest venture capital rounds in history.
The funding round is expected to be led by Thrive Capital and includes participation from existing investors like Andreessen Horowitz and GIC.
Databricks is also discussing a $4.5 billion debt financing raise, including a $2.5 billion loan.
The funds will be used to buy back expiring restricted stock units for employees and issue preferred shares to new investors.
