Founded in 2007, Lucidworks developed its chief product, the Fusion Platform, to provide customized AI-powered search engines for enterprises. One prominent use case is in ecommerce, which the company says it addresses by providing search functionality that factors in customer behavior, shopping history, related products, and numerous other personalized and dynamic data points, but the product has a range of applications. Lucidworks says its users include AT&T, Honeywell, Morgan Stanley, Reddit, Uber and the US Census Bureau.
The new fundraise represents a significant valuation step-up for Lucidworks. Here's a look at the company's funding and valuation history, per PitchBook data:
Jan. 2009: $6.5 million round | $14 million valuation
Feb. 2012: $16M | $35M
May 2013: $10M | $26M
Aug. 2014: $8M | $34M
Nov. 2015: $21M | $40.5M
April 2018: $50M | $135M
Aug. 2019: $100M | $370M
In addition, the latest round is also significant as it's potentially Lucidworks' last as a private company. CEO Will Hayes told the San Francisco Business Times that an IPO could be coming in the next two to three years.
As data storage capabilities have gone parabolic since the dot-com boom, the need to wrangle such large amounts of information has grown in correlation. As terabytes, zettabytes and beyond replace the 1990s limitations of kilobytes, such exponentially larger amounts of data could serve as an organic catalyst for companies that seek to convert big data into actionable, tailored information. Investors recognize the potential for growth, as Lucidworks is one among several companies that have recently picked up funding to grapple with big data.
For instance, in May, Sumo Logic completed a $110 million Series G at a $1.2 billion valuation, almost doubling its $650 million valuation from 2017. Additionally, Lucidworks' Paris-based, PE-backed competitor Sinequa raised $23 million last month led by Jolt Capital.
The Lucidworks investment also continues a busy start to August for Francisco Partners. Last week, Salesforce announced it had agreed to acquire Massachusetts-based ClickSoftware Technologies, a developer of field service task management software, for $1.35 billion. Francisco Partners had taken Click private in 2015 for around $438 million.
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