Boston Based Data Robot is in discussions to raise about US$500 million in a funding round that could value the machine learning startup at more than US$7 billion. The new funding would more than double the company’s valuation of US$2.7 billion from a November fundraiser, highlighting the robust investor appetite for fast-growing enterprise software companies.
The pandemic has pushed people to work remotely, and has accelerated the use of data tools provided by companies such as DataRobot.Tiger Global, an existing investor in DataRobot, will participate in the round, which is expected to be the last private fundraiser before a stock market flotation of the company, the sources added.
Boston Based Data Robot was founded in 2013 offers a subscription-based machine learning platform to help companies use big data to perform predictive analytics, a process that otherwise would require manual effort. It counts the likes of United Airlines and Deloitte among its customers. The company said last year that its annual recurring revenue was well over US$100 million, after a pickup in growth during the pandemic.
Co-founder and longtime Chief Executive Jeremy Achin left in March to focus on making major contributions to all matters of national security.Dan Wright, who joined the company as president in January 2020, has taken over as CEO. Data Robot also hired a new chief financial officer, Damon Fletcher, from data visualization software company Tableau as it prepares for a public listing, the sources said.
Fletcher, Tableau’s former finance chief, led the company through its US$15.7 billion sales to Salesforce in 2019. Boston Based Data Robot raised over US$740 million to date, according to data platform PitchBook. Its backers include Altimeter Capital, T Rowe Price, funds and accounts managed by BlackRock, Silver Lake Waterman, NEA and Sapphire Ventures.