SingleStore raises additional funds to grow its database business – TechCrunch
Single storea database provider for cloud and on-premises applications and analytical systems, today announced that it has raised $116 million in an expansion of its Series F. The new money brings the total of the company at $382 million at “unicorn status” (i.e., a valuation of $1 billion or more after the money), which CEO Raj Verma says is dedicated to development of products and the increase in staff at SingleStore by the end of the year.
Goldman Sachs led the Series F expansion of SingleStore with participation from Sanabil, Dell Technologies Capital, Google Ventures, Hewlett Packard Enterprise, IBM and Insight Partners. It comes as SingleStore brings in a new chief financial officer, Brad Kinnish, who came through Aryaka Networks and Deutsche Bank, where he was managing director of software investment banking.
The fundraising may reflect the growing demand for platforms that allow flexible storage and processing of data. An increasingly popular application is big data analysis, or the process of examining data to discover patterns, correlations, and trends (eg, customer preferences). According a recent surveythe number of companies investing more than $50 million per year in big data and AI initiatives increased to 33.9% in 2019. The same survey found that the vast majority of companies believe that data and AI analytics are essential to their organization’s digital transformation initiatives.
There has been a corollary growth in interest within the company for extracting insights from real-time data – a capability offered by SingleStore. According to a Fivetran survey, 82% of companies make decisions based on outdated information. Eighty-five percent of companies responding to the survey said this leads to incorrect decisions and lost revenue. Real-time databases promise to solve this problem.
SingleStore was founded as MemSQL in 2011 by Eric Frenkiel, Adam Prout, and Nikita Shamgunov. Frenkiel was an engineer at Meta focused on developing partnerships specifically on the Facebook platform. Prout was a software engineer at Microsoft and contributed to the company’s SQL Server product, while Shamgunov spent time at Microsoft and Meta as a senior software development engineer and infrastructure engineer, respectively.
Verma became CEO in 2020 after a year in a co-CEO role.
SingleStore’s technology is what is called a relational database, which means it uses a structure of rows and columns to identify and access data in relation to other data items in the database. . This is opposed to a non-relational database, which has a storage model optimized for the type of data it stores. Otherwise, like any database system, SingleStore accepts requests (for example, for a user profile, image, video or document) in the form of requests for data contained in the database and processes these queries – which can come from apps, websites, or elsewhere – to return results.
The provider allows customers to run real-time transactions and analytics in a single database. Customers using the platform can integrate, monitor, and query their data as a single entity, whether that data is stored in one or multiple repositories. By separating storage and compute, SingleStore claims its database platform can process a trillion rows per second, ingest billions of rows of data per hour, and host databases with tens of thousands of tables. .
“SingleStore provides unparalleled scalability by decoupling compute between individual applications such as operational analytics and real-time machine learning without these workloads interfering with each other. Workloads run on shared databases, minimizing unnecessary data movement, cost, and complexity,” Verma told TechCrunch in an email interview. “[It also] allows customers to use all the cores of their machines to process a single request…maximizing CPU utilization. »
Among other rivals, SingleStore competes with Imply, Oracle, Snowflake, and MongoDB for market share of relational database services. But the company has done well by launching joint solutions with major enterprise partners like Dell and IBM. Verma says SingleStore is approaching $100 million in annual recurring revenue with a customer base of about 300 brands, including Hulu, Uber and Comcast.
Widespread and continued growth to the cloud is partly driving SingleStore’s growth — Gartner predicted that 75% of all databases will be migrated to a cloud service by 2022. According to Verma, new customer acquisition has increased by 300% for the company’s cloud-based service, while revenue cloud increased by 150%.