Cockroach LabsThe producers of CockroachDB have been on a fundraising roll for the past few years. Today the company announced a $ 160 million Series E at a $ 2 billion valuation. Exactly eight months later the round comes Startup Raised $ 86.6 Million Series d.
The latest investment was led Altimeter capital Participation of new investors Greenox and Lone Pine as well as existing investors Benchmark, Bond, Firstmark, GV, Index Ventures and Tiger Global. The round doubled the company’s previous valuation and raised it to $ 355 million.
Co-founder and CEO Spencer Kimball says that despite COVID, the company’s revenue more than doubled in 2020 and caught investors’ attention. He attributed this contradiction to the rapid rise of this epidemic, which was witnessed by many in the industry.
“People got more aggressive with what was already going on, a real step to embrace the cloud to build next generation applications and services, and that’s really fundamentally where we are,” Kimball Told me
As it happened, the company began a change of thinking. While it has adopted an open source version of Cockroachy with a 30-day free trial on the company’s cloud service, as a way to attract new customers to the top of the funnel, it wants to try a new approach.
In fact, it plans to replace the 30-day trial with a new version later this year with no deadline. This assumes that it will attract more developers to the platform and enable them to view the full set of features without entering credit card information. What’s more, by taking this approach the company should spend less money to support the free tier.
“What we expect is that you can do all kinds of things on that free tier. You can do a hackathon, any kind of hobby project […] Or a startup that has ambitions to be the next Dorac or AirBnB, ”he said. As he points out, there is a point where early-stage companies do not have many users, and can remain in the free tier until they fit into the product-market.
“When they put the credit card down, and they can go beyond the free tier limit and pay for what they use,” he said. The new free tier is still in the beta testing phase, but will be commissioned during this year.
Kimball says the company was not necessarily mobilizing, although she knew it would require more cash on the balance sheet to run with giant competitors such as Oracle, AWS and other large cloud vendors. Startup. As the company’s revenue increases, it certainly sees an IPO in its future, but that doesn’t happen this year.
The startup ended the year with 200 employees and Kimball hopes to double by the end of this year. He says that growing a diverse group of employees provides good internal data and creates a welcoming and inclusive culture.
“I think the starting point for anything you want to optimize in a business is to make sure that you have metrics in front of you, and that you are constantly looking at them. […] To measure how you are doing, he explained.
He said, “The thing we focus on the most is actually building the company’s culture appropriately and everything we’ve been doing for six years. To the extent that your Near is an inclusive environment where people really see the value of respect, which helps with diversity. “
Kimball says he sees a different approach to running the business when the epidemic ends with some small percentage going to office regularly and others coming in for quarterly visits, but that post-office epidemic Does not see a full return for.