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Databricks, a $38 Billion Startup, Creates Its Own Venture Fund

  • Company is not capping the amount of money for investments
  • Closely held cloud software provider is valued at $38 billion

Databricks Inc., a data analytics software maker, is launching a venture fund that will back startups using its tools, and young companies it sees as potential partners.

The San Francisco-based company gained a $38 billion valuation by popularizing what it calls the data lakehouse. Backers claim this updated way to store, cull and analyze information will be a death knell for the data warehouse, a software technology that has remained a staple within corporate IT portfolios for more than three decades. To push that vision along and compete against rivals like Snowflake Inc., Amazon.com Inc. and Alphabet Inc.’s Google, the company has created Databricks Ventures, which will invest in companies that adopt the data lakehouse.