Garrett Black March 04, 2015
“Software is eating the world” has become a cliche. A modified version of that cliche, “Big Data is eating the world,” is close to being as well-worn, as startups apply machine learning and analytic tools to every field from athletes’ health to policing, mining millions of data points in search of insights. We’ve dug into the myriad of data platform profiles in the PitchBook Platform to depict the evolution of not only the space but also VC backing of data-focused startups.
It will be interesting to see how the space evolves, especially in light of Hortonworks’ recent announcement of a $2.19 loss per share, prompting some to speak of a Hadoop bubble. However, Cloudera is still moving some impressive numbers, and Hadoop, which is just one of many tools, is still the key market in the data platform and analytics space. Some say Hortonworks may have faltered a little as it is more of a pure play on Hadoop and, consequently, not as wide-ranging as Cloudera. Still, it’s too early to see which of these big competitors is becoming more predominant.
One intriguing trend for the VC industry that Cloudera represents is the number of hugely successful startups staying private. While Hortonworks went public, Cloudera has stayed private even though it reached unicorn status some time ago. It might make sense for the company to stay private but one would think Cloudera’s backers would desire an exit at its rich valuation. Of course, they may just be biding their time for an even bigger payday.
However the “staying private vs. exiting traditionally” trend develops for the VC industry as a whole, one thing is certain in the Big Data space—with plenty of startups developing new approaches and tools (even beyond the ones profiled above), the current data platform ecosystem is bound to change considerably.
To explore and predict changes occurring within the data platform ecosystem, access the PitchBook Platform for these companies’ financing and valuation histories, as well as those of other startups.