Snowflake has changed the conversation for many businesses when it comes to the potential of data warehousing. Now, one of the startups hoping to disrupt the disruptor is announcing big funding to grow its own business.
Firebolt, which has built a new kind of cloud data warehouse that promises much more efficient and cheaper analytics around everything stored in it, announces a major Series B of $ 127 million following huge demand for its services.
The company, which only came out of stealth mode in December, is not disclosing its valuation with this round, which brings the total raised by the Israeli company to $ 164 million. New backers Dawn Capital and K5 Global are participating in this cycle, alongside previous backers Zeev Ventures, TLV Partners, Bessemer Venture Partners and Angular Ventures.
He is also not disclosing many details about his clients at the moment. CEO and co-founder Eldad Farkash told me in an interview that most of them are based in the United States, and the numbers have grown from the dozen or so who used Firebolt when it was still in stealth mode. (it worked quietly for a couple of years building its product and onboarding customers before finally launching six months ago). They all migrate from existing data warehousing solutions such as Snowflake or BigQuery. In other words, his clients are already cloud-native big data companies: he’s not trying to proselytize on the basic concept but to work with those who are already in a specific location as a business. .
“If you’re not using Snowflake or BigQuery yet, we’d rather you come back to us later,” he said. Judging by the size and rapid succession of the tour, this focus is paying off.
The challenge that Firebolt has decided to take on is that while data warehousing has become an essential way for businesses to analyze, update, and manage their big data stores, after all, your data is as good as it is. the tools you have to analyze and store them. it is secure – data warehousing solutions are generally inefficient and can be very expensive to maintain.
The challenge was seen firsthand by the three founders of Firebolt, Farkash (CEO), Saar Bitner (COO) and Ariel Yaroshevich (CTO) when they were working at a previous company, the central business intelligence Sisense, where they were respectively one of its co-founders and two members of its founding team. At Sisense, the company has run into a constant problem: When you process terabytes of data, cloud data warehouses strive to deliver good performance to power their analytics and other tools, and the The only way to potentially continue to mitigate this was to accumulate more cloud capacity. And it started to get very expensive.
Firebolt set out to solve this problem by taking a different approach, by revamping the concept. According to Farkash, while data warehousing was indeed a big breakthrough in big data, it began to look like an outdated solution as the data treasures grew.
“Data warehouses solve yesterday’s problem, which was, ‘How do I migrate to the cloud and manage scalability? “” He told me in December. Google’s BigQuery, Amazon’s RedShift, and Snowflake are appropriate answers to this problem, but “we see Firebolt as the newcomer to this space, with a new take on design over technology. We’re changing the discussion from a discussion of scale to a discussion of speed and efficiency.
The startup claims its performance is up to 182 times faster than other data warehouses with an SQL-based system that runs on academic research that had not yet been applied anywhere, on how to manage data in a more lean way, using new techniques in compression and how the data is analyzed. Data lakes can in turn be connected to a larger data ecosystem, and this results in a much lower requirement for cloud capacity. And lower costs.
Fast forward to today, and the company says the concept is gaining a lot of popularity with engineers and developers in industries such as business intelligence, customer-facing services who have to analyze a lot of information to deliver insight. to real-time users, and back-end data applications. It proves what investors suspected to be a change even before the startup’s launch, stealthily or not.
“I’ve been an investor in Firebolt since their Series A and before they had paying customers,” said Oren Zeev of Zeev Ventures. “What made me invest in Firebolt was above all the team. A group of very experienced executives, mostly from the big data space, who understand very well the market and the difficulties facing organizations. Also, after talking to a few of my portfolio companies and Firebolt’s initial design partners, it was clear that Firebolt solved a major problem, so overall it was a pretty easy decision. The market in which Firebolt operates is huge when you consider the valuations of Snowflake and Databricks. More importantly, it is growing rapidly as the migration of on-premises data warehouse platforms to the cloud gains momentum and more businesses rely on data for their operations. and create data applications.