Databricks Raises $1.6 Billion in Series H Funding, Valued at $38 Billion

Databricks, a platform provider for data engineering, data science, machine learning, and analytics, has announced a $1.6 billion round of investment to accelerate innovation and adoption of the data lakehouse. The Series H financing, coordinated by Morgan Stanley”s Counterpoint Global, values Databricks at $38 billion post-money.

This latest round of investment takes Databricks’ total capital to over $3.6 billion, and will be utilized to help the business maintain its leadership position in the large and quickly developing data lakehouse industry.

Databricks intends to build on its lead by investing in innovations that further simplify AI, preserve choice and flexibility across all major public clouds, and establish the lakehouse as a modern replacement for the legacy data warehouse, driven by open standards, cloud adoption, and the continued rise of machine learning applications.

Furthermore, Databricks will invest to accelerate worldwide adoption of the Databricks Lakehouse Platform by entering new markets, enabling and extending its partner ecosystem, and developing a comprehensive catalog of industry solutions.

Databricks has pioneered an open and unified architecture for data and AI through its cloud lakehouse platform, bringing the reliability, governance, and performance of a data warehouse straight to the data lakes where most businesses already store all of their data.

Databricks clients are creating lakehouses on AWS, Microsoft Azure, and Google Cloud to handle every data and analytics workload on a single platform, rather than being forced to transfer data out of the data lake and between numerous unconnected and antiquated systems for different use cases. As a consequence, companies may minimize architectural complexity, save infrastructure expenses, and enhance data storage.

“This new investment is a reflection of the rapid adoption and incredible customer demand we’re seeing for the Databricks Lakehouse Platform and underscores the industry and investor confidence in our vision – that lakehouse is the data architecture of the future,” said Ali Ghodsi, Co-Founder and CEO of Databricks. “This marks a thrilling new chapter that will allow us to accelerate our pace of innovation and further invest in the success of data-driven organizations on their journey to the lakehouse.”

Investors

Photo Ali Ghodsi, Co-Founder and CEO of Databricks
“This new investment is a reflection of the rapid adoption and incredible customer demand we’re seeing for the Databricks Lakehouse Platform,” said Ali Ghodsi, Co-Founder and CEO of Databricks.

Other new investors joining Counterpoint Global include Baillie Gifford, ClearBridge Investments, and UC Investments (Office of the Chief Investment Officer of the Regents of the University of California). Andreessen Horowitz, BlackRock funds and accounts, Canada Pension Plan Investment Board (CPP Investments), Coatue Management, Fidelity Management & Research, Franklin Templeton, GIC, Greenoaks, Octahedron Capital, T. Rowe Price Associates, Inc., Tiger Global Management, and Whale Rock Capital Management are among the existing investors in the round.

“We’re incredibly excited to partner with the world class team at Databricks whose cloud lakehouse platform is reinventing analytics with the speed and scale customers require today,” said Dennis Lynch, Head of Counterpoint Global. “We believe the company is well positioned to become a platform of choice among forward thinking enterprises that want to transform valuable data into strategic business insights.”

Other existing and new Investors that participated in this funding round include: Alta Park Capital, a suite of BNY Mellon funds, Discovery Capital, Dragoneer Investment Group, Flucas Ventures, Gaingels, Geodesic, Green Bay Ventures, the House Fund, Insight Partners, and New Enterprise Associates.

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