Databricks' IPO is expected to serve as a bellwether for the global IPO market's health. The company was founded in 2013 and was recently named the No. 2 company on Forbes' Cloud 100 list. The recent funding round also saw participation from new investors Capital One and existing investors Andreessen Horowitz and Tiger Global.
Key takeaways:
- Databricks has raised over $500 million in a Series I funding round, with Nvidia as a new strategic investor. This funding round values the company at $43 billion, making it the eighth-most valuable private company in the world.
- The company, which uses machine learning for its cloud-based data storage and processing software, plans to expand its partnership with Nvidia and focus more on generative AI.
- Despite the new funding, the timeline for Databricks' anticipated initial public offering (IPO) remains unchanged. The company is observing the market's response to the current wave of IPOs before making its move.
- When Databricks does go public, it will serve as a bellwether for the health of the global IPO market, according to David Erickson, a professor at the University of Pennsylvania’s Wharton School of Business.