Tiger Global Management, one of the world’s largest hedge funds, recently announced the completion of a $75 million Series D investment in Snowflake. This round of funding is led by existing investor Tiger Global Management, with participation from CEO Bob Muglia and Lardo Technologies.
This investment follows a $479 million Series C funding announced in October 2019. This brings Snowflake’s total funding to $1.4 billion, making it one of the best-funded software companies in the world.
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Tiger Global Management is a private investment firm founded by Chase Coleman III in 2001 and based in New York City. The firm primarily focuses on late-stage venture capital and growth investments in public and private technology companies around the world, including software, consumer internet/mobile, financial technology (FinTech), Outsourced Administrative Services (Outsourcing), Internet of Things (IoT), Omnichannel Retailing (Retailing) and other sectors.
Coleman manages the firm alongside co-investors Scott Shleifer and Lee Fixel, investing with a long-term view on companies that can benefit the growing global digital economy. Tiger Global has invested over $8 billion since its foundation and continues adding to its varied investments portfolio with notable successes such as Dropbox, Despegar.com, Flipkart, Spotify and Twitch.
Most recently Tiger Global Management has announced it will be investing $75 million into Snowflake’s Series D funding round alongside Iconiq Capital and Dragoneer Investment Group. This latest capital injection into Snowflake comes as CEO Bob Muglia prepares to take the cloud data warehousing company public later this year. Although no comment from Tiger Global management has been made regarding this latest development, it is clear that
the company is confident in their decision to invest further into Snowflake, indicating that Tiger Global are becoming more involved within today’s tech industry.
Overview of Snowflake
Snowflake Inc. is a cloud-based data warehouse provider based in San Mateo, California and founded in 2012 by industry veterans Bob Muglia, Thierry Fautier, Benoit Dageville and Marcin Zukowski. Snowflake provides software and services to make it easier for customers to store, query, analyse, and share their data using a single platform.
In December 2019, the company announced that it had raised $1 billion in private funding at a nearly $12 billion valuation. On October 15th 2020, Snowflake announced yet another funding round with Tiger Global Management investing $75 million in a Series I debt financing. This additional funding raised the company’s total value to approximately $35 billion.
The influx of cash from this latest financing provided more financial stability for Snowflake which had previously only been valued at just over one-third of that amount earlier this year. The Series I debt financing also follows up on an unusually large injection of capital from its competitor Microsoft, who announced an investment package valued at $250 million during the summer of 2020.
Snowflake CEO Bob Muglia commented on the new funding round: “The additional financial flexibility enabled by this investment strengthens our market position as we continue to expand globally to help more institutions become fully data-driven enterprises.”
Investment Details
Tiger Global Management, the New York-based investment firm, recently invested $75 million in Snowflake, a data warehouse company. The investment was part of the company’s Series F round led by the CEO of Snowflake, Bob Muglia. The new financing brings the company’s total funding to $775 million.
Let’s look at the details of this investment.
Amount of Investment
On August 18th, 2020, Tiger Global Management invested $75 million in Snowflake in the Series F funding round led by existing investors Iconiq Capital and Madrona Venture Group. This investment brings the total raised to date by Snowflake to $1.4 billion. Led by CEO Bob Muglia, Snowflake has seen tremendous success since its launch in 2012 and is one of the most successful cloud companies of this decade.
The capital infusion will help support the company’s mission to create a modern data warehouse platform that powers businesses of all sizes and industries worldwide. With this investment, Tiger Global joins an impressive list of investors including Sutter Hill Ventures, Redpoint Ventures, Greylock Partners and Sequoia Capital who have backed Snowflake over past funding rounds.
The cloud data market is expanding quickly as companies search for ways to analyse and manage increasingly large amounts of data more efficiently. This investment will give Tiger Global access to this growing market while providing significant funds for further product development initiatives at Snowflake.
Series of Investment
Renowned venture capital firm Tiger Global Management announced on Tuesday, July 28, 2020 that it has invested $75 million in the data warehousing and cloud-based analytics company Snowflake. The investment round was led by Tiger Global Managing Partner Scott Shleifer, and follows a prior $105 million funding round in March of this year.
The new capital will be used for product development, customer acquisition, and increasing Snowflake’s presence in Europe. The new funding brings the total amount of money raised by Snowflake to date to $1.4 billion, making it one of the most widely funded tech companies of 2020.
In addition to Tiger Global Management, existing investor Altimeter Capital participated in the latest investment round alongside several other investors including Index Ventures, Redpoint Ventures and Sutter Hill Ventures. Bob Muglia, CEO of Snowflake, said: “We are thrilled to have this world-class group of new investors joining our existing base around this latest investment.”
The news comes shortly after the former CEO of Microsoft Office division Bob Muglia joined Snowflake earlier this month as president and chief executive officer – replacing former CEO Frank Slootman – after Slootman’s five-year tenure at the company officially ended on June 30th.
Investors Involved
Tiger Global Management is the lead investor in Snowflake’s $75 million Series D financing round. The round was led by new investor Tiger Global Management, with participation from existing investors Sequoia Capital and Sutter Hill Ventures, and several new participants.
In addition to Tiger Global Management, funds and accounts managed by T. Rowe Price Associates, Inc. and Dragoneer Investment Group participated in the round along with recent individual investors Bob Muglia (former CEO of Snowflake) and Michael Lardino (co-founder of Interana).
With this investment, Snowflake has raised $205 million since its founding in 2012.
Impact of Investment
Tiger Global Management’s investment of $75 million in Snowflake is sure to positively impact the company’s growth and operations. The Series D round of funding was led by Tiger Global Management and backed by existing investors, including CEO Bob Muglia and Lardino Investment.
This capital injection will give the cloud data platform a much needed boost and the opportunity to accelerate growth and expand their offerings.
Valuation of Snowflake
Snowflake, the data cloud-based platform, has recently seen a surge in its valuation due to a $75 million series C funding round. Led by Tiger Global Management, the funding round, which valued Snowflake at around $1.2 billion, was also joined by Redpoint Ventures and Sutter Hill Ventures. The influx of new capital will be used by Snowflake to further expand operations into Europe and ensure its dominance in cloud-based database services across the globe.
Moreover, the move signals Tiger Global Management’s support for Snowflake’s CEO Bob Muglia and his team who have built an impressive company since 2011 when it started as a technology upstart. This will likely open up more possibilities for Snowflake regarding international expansion and venture funding opportunities in the future. It also indicates strong investor confidence in Snowflake’s unique strategy for tackling big data issues through cloud-based services.
The funds are also likely to be used to accelerate product innovation initiatives to further increase customer adoption of Snowflakes services. Coupled with its rapid customer growth rate of over 300%,Snowflake’s latest injection of capital looks set to propel it towards becoming one of the most attractive investments amongst enterprise tech companies this year alone.
Expansion of Snowflake
Snowflake, a San Mateo-based cloud data platform company, announced recently that it has secured $75 million in a Series F from Tiger Global Management, a renowned investment firm. The latest funding brings the total investment made in Snowflake to over $900 million and values the company at around $3.5 billion. With this funding, Snowflake’s CEO Bob Muglia is confident that the company can continue to expand in its core markets and become a leader in cloud data platforms.
The new funding by Tiger Global Management speaks to the confidence investors have in Snowflake’s ability to fill a much-needed niche in enterprise technology solutions with its streaming analytics and big data storage capabilities. It also signals how more businesses are turning to cloud platforms such as Snowflake to fulfil their increasing demand for real-time operations and performance optimization.
Moving forward, Snowflake looks poised to break new ground not just on the customer front with the expansion of its products but also on the business side with investments such as those from Tiger Global Management which will further bolster its commitment toward customer outcomes on various fronts such as scalability and stability.
Bob Muglia’s New Role
As a result of the investment from Tiger Global Management, the former CEO of Snowflake, Bob Muglia, has taken on the role of co-CEO at Lardinois Techcrunch. This partnership between Snowflake and Lardinois Techcrunch marks a new era for both companies. The $75 million in Series C funding provides resources and knowledge to further propel innovation and success within Snowflake and Lardinois Techcrunch.
Bob Muglia’s role as co-CEO of Lardinois Techcrunch will allow him to draw on his extensive experience in enterprise technology to help solidify the partnership between two dynamic organisations. This new partnership is already helping both companies explore new technologies, generate deeper customer relationships, and identify fresh opportunities for growth in the tech sector.
The impact of this investment goes beyond just providing capital for growth; it also serves as a sign that two leading companies are committed to working together to create even more meaningful results. Bob Muglia’s unique skill set will work closely with each company’s current personnel, creating an environment poised for success over years to come.
Reactions to Investment
The announcement that Tiger Global Management had invested $75 million in the cloud data platform Snowflake drew attention from the tech world. The Series F funding was led by Tiger Global Management, with Snowflake co-founder and CEO Bob Muglia joining the well-known investor Lardino as a participant. It was the most significant investment since Snowflake’s Series E round, which had raised $479 million. This news was met with an enthusiastic reaction from investors and the tech industry.
Reaction from Tiger Global Management
Tiger Global Management was enthusiastic about its new partnership with Snowflake and its $75 million investment. The venture capitalist firm highlighted Snowflake’s CEO Bob Muglia, who has laid out an aggressive plan to create a truly disruptive and innovative enterprise cloud software solution.
In response to Tiger Global’s announcement, Muglia commented that the capital injection “will enable us to continue our rapid growth and focus on making Snowflake the go-to cloud data platform for the enterprise market. We are grateful for Tiger Global’s commitment to our company and look forward to building a long-term collaborative relationship.”
Similarly, Lee Fixel, partner at Tiger Global Management said: “We believe that Bob and his team have created something remarkable with Snowflake, setting a new benchmark for innovation and customer experience. We are thrilled to be part of their journey.”
Muglia’s strategy is based on fast expansion of Snowflake’s services and quick customer acquisition through strategic partnerships across many industries aiming at omni-channel delivery capabilities utilising web applications (SnowSQL) and mobile application interactions (microservices). By pairing up with Tiger Global Management, Snowflake will be able to expand in both global reach and product offerings in a short period thanks to the additional resources given by this latest round of investment.
Reaction from Snowflake
Snowflake CEO Bob Muglia welcomed the investment, stating “We are grateful to Tiger Global Management for its support and partnership as we continue to drive innovation in the data warehousing industry. This investment validates our commitment to transforming how businesses store, manage and share data.”
Chief Financial Officer Michael Scarpelli added, “We are thrilled about the strong reception by both customers and investors for Snowflake’s offering. We plan to use these new funds to expand our offerings, especially in cloud services such as analytics and data warehousing”.
Meanwhile, Lardo Saavedra from TechCrunch commented, “The funding is also a sign of confidence in Snowflake’s technology and its ability to compete with much larger rivals such as Amazon Web Services (AWS). It also signals potential opportunities for Snowflake beyond its traditional customer base of Fortune 500 companies; it serves a growing number of mid-market and smaller companies which have embraced its cloud-friendly subscription model.”
Reaction from Techcrunch
The official TechCrunch report on the investment from Tiger Global Management published today provides insight into both companies’ perspectives. CEO Bob Muglia of Snowflake said, “We are tremendously excited about the partnership with Tiger Global and believe this will position us for even greater success in our mission to reinvent EDW [enterprise data warehousing] for every company around the world”.
Evan Lardino, General Manager of Snowflake declared, “75M Series B is a tribute to our most dedicated customers who have cheered us on throughout this journey – Your trust in our vision continues to propel us towards an entire new level of scale and success!”
The investment from Tiger Global is intended to support Snowflake’s continued expansion into new markets and its continued development of innovative solutions for its customers. This agreement also brings additional recognition for Snowflake as a leader in cloud-based data warehouse solutions, with their software now being used by tens of thousands of businesses worldwide.
