Cloudera Said to Raise at Least $200 Million in Funding
Cloudera Inc. is raising at least $200 million in a new round of financing from investors including Intel Corp., according to people with knowledge of the situation.
The deal values the maker of open source database software at more than $2 billion, said one of the people, who asked not to be identified because the information isn’t public. The Palo Alto, California-based company said today that it raised $160 million from investors including T. Rowe Price Group Inc., Google Inc. (GOOG)’s venture arm and Michael Dell’s investment firm. The Intel funding will be announced later, the people said.
The funding underscores investor interest in a technology movement known as big data and software called Hadoop, used by Cloudera. Companies are seeking new ways to manage a flood of information on their customers and the markets they serve, aiming to use the data to make decisions in real time. The market for big-data technology and services will grow at 32 percent annually, research firm IDC has predicted.
“In the past nine months, Hadoop and big data has moved from a collection of technologies to a true platform that is now being architected into pretty much every enterprise,” said Tom Reilly, Cloudera’s chief executive officer, in an interview today. “Larger enterprises are moving the fastest.”
Reilly declined to comment on additional funding from Intel. Chuck Mulloy, a spokesman at Intel, also declined to comment.
In October, online database software provider MongoDB Inc. raised $150 million at a $1.2 billion valuation from investors including EMC Corp. and Salesforce.com Inc., along with previous backers Red Hat Inc., Intel, Sequoia Capital and others.
Founded in 2008, Cloudera helped pioneer Hadoop, which companies can use to organize and sort through their own data.
Last June, the company appointed Reilly, a former Hewlett-Packard Co. executive, as CEO. Reilly succeeded Cloudera co-founder Mike Olson, who became chief strategy officer and chairman of the board. Another co-founder is Jeff Hammerbacher, former head of data at Facebook Inc., an early Hadoop user.
Cloudera said today that it’s raised a total of $300 million. Previous investors include Accel Partners, Greylock Partners and Ignition Partners.
Reilly said the cash will be used to expand Cloudera’s operations globally, including in Europe and Asia, and accelerate its sales, service and support teams. He said the company is seeing increased demand in areas like financial services, telecommunications, retail and the public sector.
The public markets have welcomed cloud-software companies of late. Business-software companies Workday Inc. (WDAY), ServiceNow Inc. and Veeva Systems Inc. have soared following their initial public offerings.
Cloudera Chief Financial Officer Jim Frankola said today that an IPO isn’t imminent.
“An IPO is valuable for the company and we want to be a public company,” Frankola said in an interview. “It’s not around the corner, but we’re not one of those companies that will take years to get there either.”
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