Snowflake is a privately held data company that provides cloud computing services to its clients. Snowflake is a rapidly growing company that competes in the cloud computing space with companies that include Google and Amazon. These companies have also partnered with Snowflake on some projects.
In order to boost its ability to compete in the tech marketplace, Snowflake has entered into a funding agreement that will raise the company’s valuation to $12.4 billion which is more than three times the company’s previous valuation.
The new funding for Snowflake is going to come from two different sources. One of the sources is Dragoneer Investment Group. They will be joined by Salesforce in the new funding round for Snowflake. The new funding will help Snowflake to more readily compete against some of the larger firms in the cloud computing industry.
Snowflake was created back in 2012 by Benoit Dageville, Marcin Zukoski and Thierry Cruanes. While Benoit Dageville remains the company’s chief technology officer, the CEO of Snowflake since 2019 has been Frank Slootman.
Snowflake states that the firm currently has over 2,500 business clients as of October 2019. This is a significant increase from earlier in that year when Snowflake reported 1,400 customers. The company has been growing at a rate of over 250 percent per year. The firm holds among its clients some major names such as Yamaha and Office Depot.
The way that Snowflake helps its customers is by providing software for the client that enables the client to store data and utilize it over a number of different platforms. A client has the ability through Snowflake to share data with other business partners without the data leaving the control of the client.
While Snowflake is currently a private company, there is a great deal of speculation that the company will offer an IPO before the end of 2020. Analysts believe that if a Snowflake IPO is offered this year, it could be the biggest IPO seen in this year’s market.