AAA Corporates help add $110m for Alation

Corporates help add $110m for Alation

Data analysis software provider Snowflake, enterprise software producer Salesforce and computing technology provider Dell took part in a $110m series D round for US-based data management software developer Alation yesterday.

Private equity firm Riverwood Capital led the round, which included Sanabil Investments, an investment firm owned by the Saudi Arabian state’s Public Investments Fund, as well as Costanoa Ventures, Icon Ventures, Sapphire Ventures and Union Grove Partners.

The round valued the company at $1.2bn and Snowflake, Salesforce and Dell participated through their respective corporate venture capital units: Snowflake Ventures, Salesforce Ventures and Dell Technologies Capital.

Alation operates an artificial intelligence-enabled data cataloguing platform that enterprise customers use to manage and process their data. Its offering also supports compliance, analytics and digital transformation.

More than 250 companies use Alation’s software, including insurer American Family Insurance, sports footwear brand New Balance and pharmaceutical firm Pfizer. The proceeds of the round will be used for go-to-market activities and the development of new products and services.

The company has raised $217m of funding to date. It received $50m in an early 2019 series C round led by Sapphire Ventures that included Salesforce Ventures, Icon Ventures, Data Collective, Harmony Partners and Costanoa Ventures. The last four had already provided $23m in series B funding in 2017.

Data Collective and Costanoa co-led Alation’s $9m series A round in 2015, investing with Bloomberg Beta, the VC firm sponsored by media group Bloomberg, as well as Andreessen Horowitz and General Catalyst.

Alternative asset manager Blackstone is also an investor in Alation, as is ISAI Cap Venture, a fund jointly formed by consulting firm Capgemini’s investment subsidiary, Capgemini Ventures, and VC firm ISAI.