Smart Money: YTD Funding for Analytics Doubles vs. 2013

Funding for analytics startups continued at a torrid pace in the second quarter; 140 announced investments totaled $1.03 billion, compared to 137 investments totaling $657 million in the second quarter of 2013.  Year to date, investment in analytic ventures is up 97% versus the first two quarters of last year.  (All data sourced from Crunchbase).

Screen Shot 2014-07-13 at 4.06.49 PM

 

Eleven mezzanine rounds raised a total of $412m, 40% of the total amount invested in the sector.  There were two private equity investments:

  • Attensity raised $90m on the strength of its natural language processing, text mining and sentiment analysis solution.
  • Hadoop distributor MapR raised $80m from Google Capital, Qualcomm Ventures, Redpoint Ventures, New Enterprise Associates, Mayfield Fund and Lightspeed Venture Partners.  MapR also received a $30m loan from Silicon Valley Bank.

In other notable mezzanine rounds:

  • BPM solution vendor Tidemark raised $32m in an E round funded by Tenaya Capital, Redpoint Ventures, Andreeson Horowitz, Greylock Partners and Silicon Valley Bank.
  • Social media platform Sprinklr landed $40m in D round funding from Intel Capital, Battery Ventures and Iconiq Capital.
  • BI vendor SiSense raised $30m in a C round from Opus Capital, Genesis Partners, Battery Ventures and DFJ Growth.
  • HR solutions provider Visier raised $25.5m in a C round from Summit Partners, Foundation Capital and Adams Street Partners.
  • Predictive marketing platform provider AgilOne received $25m in C round funding from Sequoia Capital, Four Rivers Group, Next World Capital, Tenaya Capital and Mayfield Fund.

Nineteen “B” rounds raised $282m.  Top recipients include:

  • Credit scoring specialist Kreditech raised $40m from Point Nine Capital, Blumberg Capital and Varde Partners.
  • Data platform Krux landed $35m in a round led by SAP Capital.
  • Databricks capitalized on interest in Apache Spark by raising $33m from New Enterprise Associates and Andreeson Horowitz.
  • Social listening vendor Brandwatch raised $22m from Nauta Capital and Highland Capital Partners.
  • Context Relevant, a firm that offers diverse horizontal solutions with embedded analytics, landed $21m in funding from a group led by Formation 8.

Nineteen “A” rounds raised $126m.  Notable recipients include:

  • Evidence-based medicine provider Orange Health Solutions disclosed an equity investment of $22.5m from unknown investors.
  • 6Sense, developer of an eponymous sales and marketing intelligence platform, raised $12m from Battery Ventures, Venrock and Silicon Valley Bank.
  • Health analytics platform vendor Aver Informatics landed $8.5 from GE Ventures and Drive Capital.

Forty pre-venture rounds — Seed, Angel, Grants and Crowdsourcing — raised $30m.  The largest of these, at $2.65m, went to Farmeron, developer of a cloud-based analytics app for farm business management.

For this analysis, I classify firms as analytics providers if the Crunchbase company_category_list field contains the word “Analytics”.  This is a broad definition that includes:

  • Analytic data platforms (MapR)
  • Analytic tools providers (RapidMiner)
  • Analytic service providers (Palantir)
  • Business solutions with embedded analytics (AgilOne)

Of course, the quality of this classification depends on the quality of the data in Crunchbase, which is a work in progress.

Smart Money: More Funding for Analytics

Funding for analytic ventures remained robust in January, with 17 significant funding transactions and three acquisitions.   Key themes:

  • Outcomes-based medicine and health care
  • Vertical solutions for the energy industry
  • Solutions for risk management
  • Mobile analytics, including location-based targeting and app metrics
  • Social media sentiment analysis
  • Graph engines (and solutions based on graph engines)
  • In-memory SQL engines

All funding news via Crunchbase.

Funding

Health Catalyst led the way with $41 million in Series C funding.   Health Catalyst offers a solution stack consisting of a proprietary data warehouse optimized for electronic medical records, plus analytic applications designed to support outcomes-based health care.

Other transactions greater than $1 million include:

MemSQL, provider of a high performance in-memory distributed database, raised $35 million in a Series B round.

— Still in stealth mode, marketing analytics provider OrigamiLogic closed on $15 million in Series B funding.

— Kreditech scored $15 million in debt financing.  Kreditech uses machine learning and Big Data to offer credit scoring for microlending.

— Radius closed on $13 million in Series B funding.  Radius supports B2B targeted marketing and lead generation for small businesses.

— Smart grid analytics provider AutoGrid landed $12.8 million in Series C funding.

— GNS Healthcare leverages Bayesian Networks and Monte Carlo Simulation to deliver solutions for outcomes-based medicine to hospitals, health insurance plans, pharmaceutical companies and other entities in the health care delivery chain.  GNS completed $10 million in Series B financing.

— Simple Energy raised $6 million in Series B funding.  Simple Energy offers utilities services to improve customer interactions through microtargeting and social gaming.

— Binary Fountain, provider of software integrating social sentiment analysis with BPM, raised $5.7 million.

— 4C Insights integrates social media sentiment analysis with public data to support media planning and targeting.   The firm raised $5 million in Series B funding.

— Kontagent secured $4.8 million in venture funding.  Kontagent offers mobile analytic solutions to mobile app developers and marketers.

— Offshore analytic services provider Axtria received $4.8 million in venture funding.

— Enigma Technologies raised $4.5 million in Series A funding.  Enigma provides a platform for the analysis of public data that includes a repository and directory to sources, plus tools for search, export and simple analytics.

— Lumiata raised $4 million in Series A funding.  Lumiata leverages graph engine technology to deliver evidence-based predictions to medical practitioners.

— BI vendor Chartio received $2.2 million in venture funding

Bottlenose, purveyor of dashboard and insight tools for social sentiment analysis, raised $1.1 million in debt financing.

Geofeedia, a provider of open source location-based social media mining tools, received 1.25 million in Series A funding.

Acquisitions

There were three acquisitions of note; purchase prices were not disclosed.

— yp, the corporate successor to AT&T Interactive and AT&T Advertising Solutions, acquired Sense Networks on January 6.   Sense Networks uses predictive analytics to drive location-based behavioral targeting for mobile ad platforms.

— Pinterest acquired VisualGraph on January 6.  VisualGraph, a two-man operation, has developed a distributed in-memory visual search engine.

— Apigee, an API management company, acquired InsightsOne on January 8.   InsightsOne offers cloud-based infrastructure for predictive analytics based on Hadoop, plus an in-memory graph engine.