Starburst, a startup founded in 2017, has raised $100 million in funding from investors. The investment means the company is now valued at more than $1 billion. Boston-based Starburst helps with data management, but it is not a database. Instead, the startup’s product helps customers run queries against data in multiple sources. In addition, Starburst technology makes business intelligence capabilities more accessible to corporate employees.
Starburst has raised over $164 million in total funding. Through its business, the company plans to use its new resources to expand its workforce. The company is hiring two customer success positions, more than ten engineering positions, four marketing roles, and more than ten sales positions. The company's new hires will be based in the United States (US) and Poland.
The Funders Helping Starburst to Scale
Starburst enjoys support from some of the industry's significant funds. Investors in the company include Andreessen Horowitz, Salesforce Ventures, Coatue, and Index Ventures. Andreessen Horowitz is known for its investments in Asana, Facebook, Lyft, Okta, Slack, and Zynga. Salesforce Ventures is the venture capital investment unit of Salesforce (stock ticker NYSE: CRM) and has invested in Box, Bluewolf, Domo, Dropbox, SurveyMonkey, and Zoom.
How Starburst Built a Business on Open Source Software
The startup is built on Presto, an open-source software tool developed by Facebook in 2012-2013. Presto is a popular technology for large firms that have a large volume of data. Amazon, Bloomberg, Comcast, LinkedIn, Netflix, Slack, Uber, and Walmart use Presto. Starburst helps companies implement Presto technology successfully.
The explosion in Big Data has proven challenging for companies for several reasons. Some data is in easily accessible formats such as Structured Query Language (SQL) powered databases. However, analysts still tend to struggle to extract and analyze data from multiple sources. The startup has made it easy to integrate with existing technology such as the internet of things (IoT) data and customer activity.
Rather than asking analysts and business intelligence experts to repeatedly learn new data applications, they can use Starburst to query data.
Starburst's Data Startup Competitors
Starburst is far from the only startup aiming to help enterprises solve their big data problems. Key competitors to the startup include Snowflake (stock ticker NYSE: SNOW) and Dremio (which has recently raised over $100 million in funding). Snowflake, which went public in 2020, reached was one of the largest IPOs of the year. Snowflake has over 3,000 customers and reported quarterly revenue of $159 million in December 2020.
Starburst and its competitors have the advantage of competing in a fast-growing market. Allied Market Research's report suggests that the data warehousing software market will be worth more than $35 billion by 2025.
Starburst Offers Product to COVID-19 Researchers for Free
Starburst has offered its product for free to COVID-19 researchers. Announced in May 2020, their company software is available to healthcare research organizations, hospitals, and universities. It is unclear how many organizations have accepted the offer at this time.
Bruce Harpham is an author and marketing consultant based in Canada. His first book "Project Managers At Work" shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.