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).

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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: Venture Capital for Analytics 2013

Thanks to Crunchbase’s downloadable database, we can report that in 2013 investors poured more than $2 billion into Analytic startups, up 38% from 2012.  Crunchbase reports 2013 funding for Analytics ventures more than five times greater than in 2009.

Source: Crunchbase
Source: Crunchbase

Palantir led the pack in new funding, going to the well twice, in October and December, to raise a total of $304m based on a valuation of $9b.  As a point of reference, at 4X revenue, industry leader SAS is worth about $12b.

Funding flowed to companies that build advanced analytics into focused vertical or horizontal solutions.  Examples include:

Investors paid special attention to vendors who specialize in social media analytic platforms:

Capital also flowed to companies offering general-purpose software, platforms and services for analytics, including:

Investors continue to fund startups offering easy-to-use interfaces for the business user, including:

Top investors in Analytics for 2013 include:

Clearly, investors are placing bets on a robust future for analytics.