Tealium, a big data platform for structuring disparate customer information, raises $55M at $850M valuation
The typical enterprise in the present day makes use of about 90 completely different software program packages, with between 30-40 of them touching clients instantly or not directly. The information that comes out of these methods can show to be very helpful — to assist different methods and staff work extra intelligently, to assist firms make higher enterprise selections — however provided that it’s put so as: now, a startup referred to as Tealium, which has constructed a system exactly to do exactly that and works with the likes of Fb and IBM to assist handle their buyer information, has raised a giant spherical of funding to proceed constructing out the providers it gives.
As we speak, it’s saying a $55 million spherical of funding — a Sequence F led by Silver Lake Waterman, the agency’s late-stage capital development fund; with ABN AMRO, Bain Capital, Declaration Companions, Georgian Companions, Business Ventures, Parkwood and Presidio Ventures additionally taking part.
Jeff Lunsford, Tealium’s CEO, stated the corporate shouldn’t be disclosing valuation, however he did say that it was “substantially” larger than when the corporate was final priced three years in the past. That valuation was $305 million in 2016, in line with PitchBook — a determine Lunsford didn’t dispute after I spoke with him about it, and a supply near the corporate says it’s “more than double” this final valuation, and truly round $850 million.
He added that the corporate is near profitability and is projected to make $100 million in revenues this yr, and that that is being thought of the corporate’s “final round” — presumably an indication that it’s going to both not want exterior funding and that if it does, the subsequent step may be both getting acquired or going public.
This brings the entire raised by Tealium to $160 million.
The corporate’s rise during the last eight years has dovetailed with the speedy development of huge information. The motion of providers to digital platforms has resulted in a sea of data. A lot of that largely sits untapped, however those that are capable of carry it to order can reap the rewards by gaining higher insights into their organizations.
Tealium had its beginnings in amassing and ordering tags from web visitors to assist optimise advertising and marketing and so forth — a enterprise the place it competes with the likes of Google and Adobe.
Over time, it has expanded and capitalised to a a lot wider set of knowledge sources that vary properly past internet and commerce, and one use of the funding might be to proceed increasing these information sources, and in addition how they’re used, with an emphasis on utilizing extra AI, Lunsford stated.
“There are new areas that touch customers like smart home and smart office hardware, and each requires a step up in integration for a company like us,” he stated. “Then once you have it all centralised you could feed machine learning algorithms to have tighter predictions.”
That huge potential is one motive for the investor curiosity.
“Tealium enables enterprises to solve the customer data fragmentation problem by integrating and enriching data across sources, in real-time, to create audiences while providing data governance and fidelity,” stated Shawn O’Neill, managing director of Silver Lake Waterman, in an announcement. “Jeff and his team have built a great platform and we are excited to support the company’s continued growth and investment in innovation.”
The speedy development of digital providers has already seen the corporate getting a giant enhance by way of the info that’s passing via its cloud-based platform: it has had a 300% year-over-year improve in customer profiles created, with present tech clients together with the likes of Fb, IBM, Visa and others from throughout quite a lot of sectors, akin to healthcare, finance and extra.
“You’d be surprised how many big tech companies use Tealium,” Lunsford stated. “Even they have a limited amount of bandwidth when it comes to developing their internal platforms.”
Folks wish to say that “data is the new oil,” however as of late that expression has taken on maybe an unintended which means: identical to the overconsumption of oil and fossil fuels normally is considered as detrimental to the long-term well being of our planet, the overconsumption of knowledge has additionally develop into a really problematic spectre in our very pervasive world of tech.
Governments — the European Union being one notable instance — are taking on the problem of that latter challenge with new rules, particularly GDPR. Apparently, Lunsford says this has been a superb factor slightly than a nasty factor for his firm, because it offers a a lot clearer directive to firms about what they’ll use, and the way it may be used.
“They want to follow the law,” he stated of their shoppers, “and we give them the info freedom and management to try this.” It’s not the one firm tackling the enterprise alternative of being a big-data repository at a time when information misuse is being scrutinised greater than ever: InCountry, which launched weeks in the past, can also be banking on this hole available in the market.
I’d argue that this might doubtlessly be another reason why Tealium is eager on increasing to areas like IoT and different sources of buyer info: identical to the ocean, the pool of knowledge that’s there for the tapping is almost limitless.