Mon. Jan 17th, 2022

Cockroach Labs, makers of CockroachDB, raised money this year. It started the year with a $160 million Series E at a valuation of $2 billion and ended with a Series F at $278 million at a valuation of $5 billion, more than doubling its company value in less than 12 months.

Greenoaks led the final round – they were participants in the previous round – with participation from Altimeter, Bond, Benchmark, Coatue, FirstMark, GV, Index Ventures, JP Morgan, Lone Pine Capital, Redpoint Ventures and Tiger Global. The company reports that it has raised a total of $633 million with more than $550 million in three rounds starting with a round of $86.6 million in May 2020.

That’s a lot of capital, and that’s probably because the database market is growing by leaps and bounds. The company’s co-founder and CEO Spencer Kimball says there’s been a lot of follow-up interest in investing in the company since the January roundup, which is how it came together so soon after the last one. In addition, he says there was an alignment between the investors and the company.

“You want investors who understand the business from their own perspective. They ask us to invest instead of trying to convince them that our company is the right one to invest in. That gives a very, I say, complementary [relationship where] their perspective ultimately contributes to our perspective,” Kimball told me.

The company reports that it has 200 paying customers, with the cloud side of the business growing 500% in the past year and the ARR tripling yoy from Q3 to Q3. While the bulk of its revenue still comes from the self-hosted version, the company expects the hosted version to continue to grow faster over time. They also offer a serverless product that they launched in beta in October.

This is consistent with a recent report from Battery Ventures, State of the Open Cloud, which we reported on last month. The company found that cloud-native companies saw much more revenue growth from their hosted versions than from self-installed versions.

Chart showing infrastructure companies making much more money from their hosted cloud versions than from self-installs

Image Credits: battery companies

The company is currently working with Amazon and Google on the cloud deployment side, with plans to support Microsoft Azure by 2022.

Cockroach has actually had a complicated history with Amazon, especially when Amazon played fast and loose with open source licensing, and several companies like Cockroach, Elastic, and MongoDB changed their approach to licensing to protect against Amazon’s infringement.

Today, however, the company sees Amazon much more as a partner, using Amazon’s services in-house, hosting the SaaS version on Amazon, and even having Amazon as a go-to-market partner where Amazon offers Cockroach to its customers if needed. sells.

The company is focused on maintaining momentum while expanding the product family, and the new money should help. Kimball thinks he’ll have at least 3-4 years of runway with this round, and it’s a hedge against an economic downturn and tighter money (although clearly there’s no sign of that at the moment).

Kimball expects this could be the last round to raise the company, though he left the door open to raise more if the right opportunity presented itself. Going forward, he says his goal from day one was to become a publicly traded company and that could be the next step.

“So that’s our expectation. Our TAM (total addressable market) is certainly big enough and our growth reflects that. What we’re looking at now as a management team is what it takes to get there,” he said.

The company hired a CFO this year, often the first step before going public, so all the signs are there – the big round, the flashy valuation, the growth trajectory, the new CFO – the company just has to decide when the time is right .

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