CockroachLabs Secures $160M to Grow Their Distributed SQL Database
If last week was any indication, then the year 2021 promises to be a good one for the data market. Cockroach Labs, the creators of the cloud SQL database known as CockroachDB, announced a $160 million investment headed by Altimeter Capital. Other investors include previous investors such as Benchmark, Bond, FirstMark Capital, GV, Index Ventures, and Tiger Global Management, and new investors such as Greenoaks Capital, and Lone Pine Capital.
This latest stream of investments and funding brings Cockroach Labs' total funding to $355 million, and the company at a current market valuation of about $2 billion.
With a growth in the product comes an increase in the company and its workforce.
As at the close of the year 2020, the company ended the year with roughly 200 employees.
As at November last year, the company rolled out a new update which incorporated new geospatial abilities.
A critical part of the update that the company plans to release, is to reduce the complexity of data.
This new investor saw the company join other data management companies such as Dremio and Starbust as companies. They have succeeded in raising new funding at the early stages of the New Year.
New investors, Greenoaks Capital, expressed their faith in CockroachDB and its potential and expressed their excitement in partnering with the company.
“Cockroach Labs offers a remarkable experience. It removes much of the incremental cost of scaling, driving massive cost-savings and improving developer agility. We could not be more excited to partner with the Cockroach team."
In 2020, the CEO Spencer Kimball noted that the company's revenue more than doubled despite the pandemic and said that was potentially what attracted more investors; he stated the company didn't seek funding but was approached by investors instead.
This influx of funds is the second significant funding into Cockroach labs in just eight months. This increase of financing can be considered a show of the potential of CockroachDB and the company's fast growth. The COVID-19 pandemic saw a lot of businesses move their businesses to the cloud. This is looking to be the new future for businesses as it seems unlikely that companies will return to old ways even after the pandemic is over. This new wave of companies adapting to digital spaces and remote workforce has been a significant force of acceleration for Cockroach Labs.
CEO Spencer Kimball said this about why there has been a surge in investments for CockroachDB.
However, the company says development for a new update they plan to release later this year is already underway.
"I think fundamentally investors look at Cockroach, which represents the sort of next generation of the largest market in software, which is relational databases, and they see that same potential."
Going further, Kimball explained:
"We have an initiative called 'make global easy', and it's really about making it so that the complexity of using geo-partitioning is about equal to the complexity for a developer of using an index in a relational schema."
With the more businesses moving to the cloud, Cockroach labs have swiftly made itself one of the most highly developed cloud-native SQL databases for all transactional workloads proving itself to be reliable and a major cornerstone in the world of database management.
Altimeter Capital, the leading investor, represented by Kevin Wang, also shared this confidence in Cockroach Labs' work.
"Cockroach is proving to be a key piece of the multi-cloud reference architecture of the future. We are excited to partner again with the Cockroach team as we build an iconic and generational company."