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SQL database company Cockroach Labs has raised $ 278 million in a Series F funding round led by Greenoaks. The New York-based company is now valued at $ 5 billion, well above double its previous valuation back in January.
The investment comes as cloud spending has risen sharply, in part due to companies’ digital transformation efforts in the wake of the global pandemic. As companies have embraced cloud computing, this not only makes it easier to roll out new products and services, but to scale them as demand grows. In turn, this promotes competition in industries and then causes companies to channel even deeper into the cloud – which is where Cockroach Labs and the like can benefit.
“The ease with which new products and services can be built and delivered via the cloud has accelerated competition in almost every market – in order to compete and win in any market, companies must meet and even exceed advancing consumer expectations,” Cockroach Labs CEO Spencer Kimball said. VentureBeat.
Resilience as a service
Cockroach Labs was founded in 2015 by former Googlers including CEO Kimball and is the lead developer of CockroachDB, a distributed SQL database used by companies such as Comcast and DoorDash to store multiple copies of their data in different clouds and regions to ensure uninterrupted access . So that means that if there is an outage somewhere, a company’s traffic will simply be redirected to another place where the data is stored. Resilience is pretty much the name of the game here, and is the reason why the company has chosen to line up with a humble insect – cockroaches are known for their almost invincible.
“In order to compete and win in any market, companies must meet and even exceed advancing consumer expectations,” Kimball added. “We are all learning to demand absolute reliability in services that are more and more critical to our daily lives, and we expect frequent improvements in features and functionality.”
CockroachDB was previously available under an open source license, but Cockroach Labs switched to a proprietary license in 2019, essentially preventing third parties from offering CockroachDB “as-a-service” without paying for a license. This follows a similar trend as we have seen elsewhere in the open source sphere where people like MongoDB made a similar move in 2018 and recently Elastic.
Prior to that, Cockroach Labs had raised about $ 355 million, including its $ 160 million series E-tranche earlier this year, and with an additional $ 278 million in the bank, it is well-funded to double its recent growth, which the company said has seen its annual return revenue (ARR) has tripled over the past year.
“This latest funding – and significant valuation – reflects Cockroach Labs’ accelerated growth and the huge opportunity for us to become a leader in the burgeoning cloud database-as-a-service market,” Kimball said. “In the coming decade, we will see more new ‘greenfield’ applications built into the cloud than all the older applications built over the previous few decades.”
The company’s Series F round included a number of notable investors in addition to the leading backer Greenoaks, including Alphabet’s GV, Tiger Global, JP Morgan, Altimeter, Bond, Benchmark, Coatue, Redpoint Ventures, Lone Pine Capital, FirstMark and Index Ventures.
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