There’s still more big cash coming for big data.
Guavus Inc., a private startup company that makes software to deal with massive data sets produced by telecom networks, has raised $9 million in new money, from the venture capital arm of Goldman Sachs Group Inc. and TransLink Capital, an Asia-focused VC firm. It says it will use the cash to grow in Asia and pursue acquisitions.
The San Mateo, Calif.-based firm is yet another “big data” company that has attracted funding as venture firms hope to cash in on the movement by companies to collect and analyze the petabytes (that’s 1,000 terabytes) of data being generated by e-commerce, mobile networks, and other online activities.
Last year Splunk Inc. SPLK -2.57% went public, and its stock has since jumped 148%. Earlier this month Tableau Software Inc. filed to go public as well, and is seeking to raise $150 million in an initial public offering that could come by May.
Since it was founded 2006, Guavus has worked with large mobile and wired communications companies to collect the massive amounts of data generated by users on their networks. Its software then uses that data to create applications for use by network engineers, marketers, and other people within those companies.
The $9 million infusion comes after it closed a $30 million round in January, from several venture firms including Intel Capital. It has now raised $87 million in total, according to the company.
As for its own IPO, Guavus’s founder and chief executive Anukool Lakhina said: “We are very much in growth mode right now, and there are some advantages of being a private company. We can focus on some big bets.”
Mr. Lakhina said the company grew its revenues by more than 300% last year, and that “we’ll definitely double again this year,” but would not disclose a figure. He added that the company, which was founded in 2006, has some 400 employees.
Mr. Lakhina said that Guavus would use the fresh capital to expand internationally, particularly in Asia, and look for new customers beyond communications networks. He said that it would also explore acquisitions, having earlier this year bought Montreal-based Neuralitic Systems.
“We believe the value in ‘big data’ is on the application side, on the ‘so-what’ side. It’s how data is driving decisions, versus the technology and the tools,” he said. “While big data is a bit overhyped, and the category is a bit confused, there is a big opportunity for companies to become data-driven.”
Guavus generates revenues by charging a subscription fee to companies who use its software. It’s a model that is popular with many “cloud” software companies, though some big data firms — including Tableau and Splunk — also sell perpetual software licenses.
Source: The Wall Street Journal