Snowflake Computing, which wants to stay independent, could go public in about two years after a USD 450m funding round earlier this month, said CFO Thomas Tuchscherer.
The San Mateo, California-based cloud data warehouse closed the Sequoia Capital-led round on 11 October. The company had raised USD 263m in January, but Tuchscherer said Snowflake decided in July to raise another, larger round after it began to significantly outpace its business plan.
The raise brings the company’s valuation to USD 3.5bn.
The company expects to quadruple revenue for its fiscal year ending 31 January 2019 and expects similar growth next year, said Tuchscherer. The company expects the new round will allow it to scale to the size of a public company in about two years, but it has not started to talk to banks about a public offering, said Tuchscherer. He added the company will focus on consistent and sustainable “hyper growth” through the next couple of years, and hopes to show public investors that type of trajectory.
Tuchscherer added that while the possibility of being acquired remains, Snowflake does desire to remain independent.
Tuchscherer knows about taking a company public. Prior to Snowflake, he served as CFO at Talend [NASDAQ:TLND] from 2012, leading the company through a successful IPO in 2016 and helping it increase revenue 20x.
Snowflake will use the funding to invest in research and development, increase sales capacity and increase its global presence, said Tuchscherer. The company will be in nine countries by January, and expects to increase to 19 by 2021, he said. The company also expects to grow its employee count from 650 today to about 1,000 by January, he added.
Snowflake allows companies to house their data in the cloud, and take advantage of the cloud’s ability to allow for scaling and data sharing.
The company sees its biggest advantage as being created with the cloud in mind, not being an older, on-premise data warehouse system that has had to adapt to the cloud like some of its competitors, which include Oracle [NYSE:ORCL] and Teradata [NYSE:TDC], said Tuchscherer.
The company also competes on some levels with some of the large cloud providers, such as Microsoft’s [NASDAQ:MSFT] Azure, Amazon’s[NASDAQ:AMZN] AWS and Alphabet’s [NASDAQ:GOOG] Google, which have data warehousing capabilities, he said. However, the company also is a partner with Microsoft and Amazon, as its platform works on their public clouds, he added.
Founded in 2012, Snowflake has raised a total of USD 923m to date. Along with Sequoia, Altimeter Capital, Capital One Growth Ventures, ICONIQ Capital, Madrona Venture Group, Redpoint Ventures, Sutter Hill Ventures, Meritech Capital and Wing Ventures also participated in the most recent round.
The Northern California company uses Cooley LLP as its legal adviser, according to the California Department of Business Oversight.
by Chris Metinko in San Francisco