Alternative data vendors seek billion-dollar valuations
Alternative data vendors have seen a rush of success in fundraising this month, with several providers achieving multi-billion-dollar valuations as a result of recent funding rounds.
PatSnap, which provides data on global intellectual property, received USD 300m last week from investors like Softbank’s Vision Fund II and Tencent. That investment has turned the patent data provider into the latest unicorn, or private company with a valuation over USD 1bn.
The firm said it will use the money to develop new products and expand its sales presence in international markets like Germany, France and Japan. It also plans to strengthen its database of pharmaceutical research.
And Dataminr, a provider of real-time event-based alerts data, is now valued at a staggering USD 4.1bn after it closed a USD 475m financing round on Tuesday. That valuation is over two-and-a-half times the company's 2018 valuation of USD 1.6bn.
Last week, the company was said to be raising new funding at a valuation of USD 3.6bn, but it exceeded those expectations. The company said it will use the new capital to fuel growth of its corporate enterprise business line, which has doubled in revenue three years in a row, the company said. It also plans to expand its private and public sector sales footprint in Europe and APAC.
In September, Neudata reported that Nella Domenici, former chief financial officer at Bridgewater Associates, joined Dataminr as its CFO.
Mega-fundraising activity by data vendors has gained significant traction over the last few weeks, with data providers noting that they’re capitalising on a strong supply of available fundraising capital. Earlier this month, several vendors announced plans to go public through special-purpose acquisition companies (also known as SPACs), including satellite data provider Spire Global, which is targeting a USD 1.6bn valuation, and vehicle sensor data vendor Otonomo, which is targeting a valuation of USD 1.4bn.
Wejo, another provider of vehicle sensor data, is also reportedly considering a SPAC at a valuation of more than USD 2bn, according to published reports.