snowplow, a platform designed to generate data for artificial intelligence and business intelligence applications, today announced it has raised $40 million in a Series B funding round led by NEA, investors Snowplow, Atlantic Bridge and MMC. Co-founder and CEO Alex Dean said the new cash will allow Snowplow to expand its team, open a second headquarters in Boston, and expand its platform to support new types of data creation.
Snowplow has its origins in the consulting work of Dean and Yali Sassoon (co-founder of Snowplow), which often included helping companies use behavioral data from mobile apps and websites to inform their business strategies. “Behavioral data” is data that captures how people, usually customers, interact with products and services.
Dean was an analyst at Deloitte and a consultant at Fathom Partners, while Sassoon was a lawyer at PwC. According to Dean, their clients constantly faced restrictions – mainly data “stuck” in tools such as Google Analytics.
“The data teams spent most of their time trying to extract data from various software-as-a-service platforms, leaving very little time for innovation,” Dean told TechCrunch in an email interview. “[We] launched Snowplow to help any company create granular behavioral data for itself in its own cloud, freeing data analysts and scientists from the constraints of analytics vendors.”
Snowplow creates AI and ML data at source, i.e. in the customer’s preferred data store (such as an Amazon Web Services or Google Cloud Platform instance). The idea is to automate the creation and management of a “data language” in business with a common schema that can be modeled for business intelligence and artificial intelligence, streamed to real-time applications, and enriched with third-party data and systems.
Dean argues that creating new behavioral data instead of reusing existing data can lead to better datasets for AI and analytics. For example, one client, Software.com, uses Snowplow to track event data from multiple sources on its platform and provide it in a single, consolidated format.
“There are no companies that do what we do,” Dean said. “Other companies create behavioral data, but typically to power their own applications—examples include digital analytics solutions (eg Google Analytics) and customer data platforms (eg Segment, mParticle). However, unlike these solutions, Snowplow… processes data in customer clouds.”
Snowplow, which has raised a total of $55 million, claims that more than 10,000 companies use its platform to date, including Flickr and Strava. (This figure includes organizations using the open source Snowplow platform as well as its fully managed product.) Snowplow has an annual recurring revenue of $12 million and plans to grow from 140 to 200 employees by the end of the year.
“Senior executives must constantly monitor the security, privacy and governance of their data. Snowplow gives you full control over your data pipelines in your own cloud infrastructure,” said Ding. “We have enjoyed strong growth during the pandemic as many companies have doubled their investments in digital technology and data… [and] we believe we are well prepared for any broader economic slowdown. [We’re] well-capitalized with a product that greatly improves AI ROI. Digital transformation is not slowing down, and AI is playing an increasing role in this.”
Credit: techcrunch.com /