Dataiku is the latest well funded firm to fall victim to macroeconomic headwinds, having to raise additional funding at a far lower valuation than before. Wellington Management led the $200 million Series F round that valued the firm at $3.7 billion, down from the $4.6 billion valuation that Dataiku got in August of 2021.
Dataiku has indicated in an SEC filing that it hopes to raise up to $275 million to conclude its Series F. With Wellington’s investment of $200 million, the New York-based business has now raised a total of almost $600 million.
“Dataiku’s strong track record, management team, growth trajectory, and customer roster, positions the firm to expand AI to new heights,” said Matt Withelier of Wellington Management in a statement. We’re happy to work with them and be a part of their remarkable progress. Dataiku is in the vanguard of companies that “help corporations put large datasets to work at unprecedented speed, while also establishing an AI culture centred on producing accretive business outcomes.”
The speed bump is a bit of a shock. In contrast to its competitors like DataRobot, Dataiku, which offers tools to help customers design, test, and deploy AI and analytics applications, has avoided significant layoffs. This year, Dataiku gave investors their first look at its yearly recurring revenue (around $150 million) and made its first external hire for a C-suite position (a new chief financial officer).
Dataiku’s new chief financial officer, Adam Towns, was instrumental in taking Mimecast public, thus his hire sparked rumours that the company was planning an initial public offering (IPO) soon. However, the Series F announcement hints that a listing may still be in the future.
There are indicators that venture capital investments in AI businesses are beginning to slow. Overall investments in AI companies reached $20.2 billion over 1,340 transactions in Q2 2022, according to a new study by PitchBook, a drop of 27.8% quarter over quarter. To early this year, venture capitalists have invested a total of $48.1 billion across more than 3,000 artificial intelligence company deals.
Dataiku has over 500 customers, including more than 150 of the Fortune 500 businesses, according to a news statement. Dataiku co-founder and CEO Florian Douetteau said the company’s customers are putting the platform to use for things like predictive maintenance, supply chain optimization, engineering quality control, and marketing optimization.
It’s clear that now is the moment for businesses to adopt AI, or they risk being left behind, according to a recent statement from Douetteau. When faced with such adversity, the fact that we were still able to recruit global leaders like Wellington as investors speaks volumes about the quality of our solutions, the calibre of our team, and the scope of the potential that lie ahead. As the advent of AI ushers in a period of profound market change, we find ourselves prepared to seize the moment.
Dataiku is in competition with many other firms for leadership in the artificial intelligence and big data analytics industries since its start in Paris in 2013. Databricks, a more serious competitor, raised $1.6 billion in August 2021, while DataRobot, aforementioned, raised $300 at a $6.3 billion value in July 2021.
Dataiku has just introduced Dataiku Online, a fully managed version of their data science platform, in an effort to attract more startups and SMEs as clients. Dataiku has released new tools that facilitate the development and deployment of AI and analytics applications, the transformation of raw data into advanced analytics, and the creation of machine learning models for use in a variety of businesses’ own products and services.
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