Analytics platform provider sees valuation blow past $1 billion
Sisense, which offers a business analytics platform for builders and non-technical folks, has received an infusion of more than $100 million in funding, which helped boost its valuation to more than $1 billion.
The Lowdown: The new funding for the company, which launched in Israel in 2004, was led by Insight Venture Partners and included other existing investors, including Bessemer Venture Partners, Battery Ventures, and DFJ Growth.
The Details: Officials with Sisense, which boasts recurring revenue of $100 million and more than 2,000 customers, including such high-profile companies as Expedia and Tinder, said the money will be used to fund further innovation and global expansion as well as sales, marketing, and development initiatives to increase market share and attract more investment.
The company’s platform is aimed at making analytics capabilities more widely available beyond data scientists, enabling builders and users who may not be highly technical to crunch Big Data and extract useful business intelligence (BI).
The platform includes such BI software as analytics, database, and visualization, an open API framework for easier customization, an analytics engine the company claims is 10 to 100 times faster than in-memory, and machine learning anomaly detection capabilities.
The Impact: The investment represents a deeper push by Insight Partners into the world of big data management and analytics. The private equity firm last week announced it’s spending $5 billion to buy Veeam a year after leading a $550 million funding round for the company in early 2019.
Sisense itself has used acquisitions to build out its portfolio. The company in May 2019 bought Periscope Data and its analytics platform and has worked during the year to integrate Periscope’s technology with its own. Most recently, Sisense announced earlier this month that the Periscope technology is now branded as Sisense for Cloud Data Teams.
Background: There has been some consolidation in the data analytics and BI market over the past year. Among the more high-profile deals was Salesforce buying Tableau for $15.7 billion and Google scooping up Looker for $2.6 billion.
The interest in the market isn’t surprising. In today’s world, data is coin of the realm and being able to more quickly analyze and act on the massive amounts of data being generated can create a competitive advantage. IDC analysts predicted that the data analytics market would hit $189.1 billion in 2019 and reach $274.3 billion in 2022, an annual growth rate of 13.2%. Digital transformation efforts are the key drivers of the market trends, according to IDC.
The Buzz: “With annual recurring revenues of over $100 million for fiscal-year 2019, and more than 2,000 customers ranging from Expedia to Philips, Tinder to Nasdaq, and the Salvation Army, we have demonstrated market success, scale, and traction,” Sisense CEO Amir Orad said. “We are honored to have these reputable investment partners support our growth strategy and continue on our fast track.”
“We have enjoyed watching the Sisense momentum in the past 12 months, the traction from its customers as well as from industry-leading analysts for the company’s cloud-native platform and new AI capabilities,” said Jeff Horing, managing director at Insight Venture. “That, coupled with seeing more traction and success with leading companies in our portfolio and outside, led us to want to continue and grow our relationship with the company and lead this funding round.”
“Given our investments in market-leading companies across diverse industries, we realize the value in analytics and machine learning and we could not be more excited about Sisense’s trajectory and traction in the market,” said Daniel Shinar, who leads Access Industries’ investments in Israel. “Sisense is the clear leading analytics platform for builders, and we’re excited to be part of their journey for many years to come.”