The pandemic may feel all-encompassing at the moment, but Confluent announced a $250 million Series E today, showing that major investment continues in spite of the dire economic situation at the moment.
The company is now valued at $4.5 billion.Todays round follows last years $125 million Series D.
At that point the company was valued at a mere $2.5 billion.
Investors obviously see a lot of potential here.Coatue Management led the round, with help from Altimeter Capital and Franklin Templeton.
Existing investors Index Ventures and Sequoia Capital also participated.
Todays investment brings the total raised to $456 million.The company is based on Apache Kafka, the open-source streaming data project that emerged from LinkedIn in 2011.
Confluent launched in 2014 and has gained steam, funding and gaudy valuations along the way.CEO and co-founder Jay Kreps reports that growth continued last year when sales grew 100% over the previous year.
A big part of that is the cloud product the company launched in 2017.
It added a free tier last September, which feels pretty prescient right about now.But the company isnt making money giving stuff away, so much as attracting users, who can become customers at some point as they make their way through the sales funnel.
The beauty of the cloud product is that you can buy by the sip.The company has big plans for the product this year.
Although Kreps was loath to go into detail, he says that there will be a series of changes coming up this year that will add significantly to the products capabilities.As part of this were going to have a major new set of capabilities for our cloud service, and for open-source Kafka, and for our product that were going to announce every month for the rest of the year, Kreps told A Technology News Room.
These will start rolling out the first week in May.While he wouldnt get specific, he says that it relates to the changing nature of cloud infrastructure deployment.
This whole infrastructure area is really evolving as it moves to the cloud.
And so it has to become much, much more elastic and scalable as it really changes how it works.
And were going to have announcements around what we think are the core capabilities of event streaming in the cloud, he said.While a round this big with a valuation this high and an institutional investor like Franklin Templeton involved typically means an IPO could be the next step, Kreps was not ready to talk about that, except to say the company does plan to begin behaving in the cadence of a public company with a set of quarterly earnings, just not for public consumption yet.The company was founded in 2014.
It has 1,000 employees and has plans to continue to hire and to expand the product.
Kreps sees plenty of opportunity here in spite of the current economics.I dont think you want to just turtle up and hang on to your existing customers and not expand if youre in a market thats really growing.
What really got this round of investors excited is the fact that were onto something that has a huge market, and we want to continue to advance, even in these really weird uncertain times, he said.