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A company called Snowflake has raised $263.5 million in new funding to build its data warehouse business. 

The funding round was led by Iconiq Capital and Altimeter Capital, and the amount perhaps indicates the size and future growth potential of the enterprise cloud market.

Snowflake has raised a total of $473 million in funding and is likely to go public with a valuation of about $1.5 billion.

CEO Bob Muglia said: “Data is the currency of today’s economy and the data warehouse is the engine of that economy.

“But legacy technologies still hinder organizations from becoming modern, data-driven enterprises. Snowflake’s vision, which began with the data warehouse built for the cloud, has gained significant traction with enterprises across dozens of industries.

“Today’s announcement further validates Snowflake’s continued mission to enable a true data economy by removing the barriers that prevent enterprises from easily acquiring insight from all their data no matter where that data resides.”

Snowflake is aiming its services at the financial sector, with Capital One among its customers. The company is also targeting retail, media and other markets.

So far, Snowflake says it has grown its total customer base by “300 per cent”, with strong growth in areas such as:

  • technology (325 per cent);
  • telecommunications (300 per cent);
  • finance (260 per cent);
  • advertising (225 per cent); and
  • healthcare (214 per cent).

The latest funding helps elevate Snowflake to “unicorn” status, a term usually applied to startup companies with a market valuation of more than a billion dollars.

Snowflake says the new funding will be invested in the following areas:

  • Doubling down on R&D by growing Snowflake’s world-class engineering team, located at the company’s San Mateo, Calif., headquarters in the heart of Silicon Valley and its newest engineering office in Bellevue, Washington.
  • Expanding current operations across North America, EU and Asia Pacific regions to address the global surge in demand for Snowflake’s data-warehouse-as-a-service, which is now available across four AWS deployment zones.
  • Continuing to deliver new innovations such as The Data Sharehouse, which further expands Snowflake’s lead over legacy cloud and on-premises solutions, while transforming what a cloud-built data warehouse can achieve by enabling live global data sharing and a true data economy.

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