Snowflake Computing CEO Bob Muglia (second from left) with co-founders (L to R) Thierry Cruanes, Benoit Dageville, and Marcin Zukowski. (Snowflake Photo)
In January, after raising $263 million, Snowflake Computing CEO Bob Muglia indicated that the next time his fast-growing cloud data warehousing company tapped the financing markets, it would likely involve an IPO. Plans changed.
Snowflake plans to announce Thursday that it has raised a new $450 million round led by Sequoia Capital. Existing investors, including Seattle’s Madrona Venture Group, participated in the round and have now poured $923 million into the former Microsoft executive’s new company. The latest round comes with a pre-money valuation of $3.5 billion.
“I certainly didn’t see this coming in January,” Muglia said in an interview with GeekWire. “Simply put, the speed of our growth has increased so much that it’s really appropriate for us to get more capital.”
Interview: Bob Muglia, Microsoft veteran and Snowflake Computing CEO, on databases and a changing Seattle
Snowflake built a data warehouse — a special kind of database designed for analytical applications — designed for the cloud computing era around its own database engine, and the company is “approaching $100 million in revenue,” Muglia said, which would be about four times the “tens of millions” figure he quoted back in January for 2017 revenue.
Headcount has doubled this year to 650 employees, and Snowflake is seeing an increasing number of deals valued at over $1 million, Muglia said. The company plans to reach around 1,000 employees by the end of this year, and plans to hire another 1,000 next year, including an expansion of its Bellevue engineering center.
Snowflake Computing executives, with CEO Bob Muglia wearing the sleeveless vest in the center, gather in the snow. (Snowflake Computing Photo)
An IPO is still on the table around 2020, Muglia said, …read more