10 Cool Tech Companies That Raised Funding In February
Time series database developer InfluxData, data observability startup Acceldata and hyperscale networking software company Arrcus are among the companies that raised new financing in February, a list led by cloud security tech provider Wiz.
Follow The Money
The pool of venture capital and other funding sources for IT companies seeking financial resources to maintain their growth continues to dry up. Whereas a year ago each month would see multiple companies announcing funding rounds of $100 million or more, such deals are becoming as rare as, well, unicorns.
With one notable exception, none of the funding deals on the Follow the Money roundup for February exceeded eight figures. Only two, in fact, were more than $50 million.
The major exception to the more limited availability of venture capital was cloud security company Wiz, which collected $300 million in a Series D funding round in February.
Big data continues to be an active IT sector with InfluxData, Acceldata and OneHouse reporting successful funding rounds.
On the bright side, there are a number of seed and Series A funding deals on this month’s list—evidence that if a startup has ground-breaking technology with compelling business use cases, investors are still willing to write funding checks. Attracting venture capital in February, for example, were startups developing AI, next-generation networking and quantum computing technologies.
Here’s a look at 10 companies that raised funding in February 2023.
Headquarters: New York
CEO: Assaf Rappaport
Funding: The $300 million Series D funding round brings the company’s total funding to $900 million and puts the company’s valuation at $10 billion.
Investors: The round was led by Lightspeed Venture Partners with participation from existing investors Greenoaks Capital Partners and Index Ventures.
What the company does: Wiz is a fast-growing developer of cloud security technology.
CEO Quote: “We are extremely proud of our growth rate in terms of number of customers, sales and valuation, especially in view of the current market conditions for global high-tech. … This round of funding will accelerate the growth of our global operations, enable diversification of our customers across a range of industries and support our commitment to continued innovation.”
Headquarters: San Francisco
CEO: Evan Kaplan
Funding: The company raised $81 million in capital funding including a $51 million Series E funding round and a $30 million debt facility with Silicon Valley Bank.
Investors: The Series E funding round was led by new investors Princeville Capital and Citi Ventures with participation from existing investors Battery Ventures, Mayfield Fund, Sapphire Ventures and others.
What the company does: InfluxData develops the InfluxDB time series database platform.
CEO Quote: “The tailwinds are behind time series and InfluxData, evidenced by the significant growth of our cloud business, which now represents nearly half of our revenue. As the pioneer of the modern time series market, we played a pivotal role in driving the recent acceleration in this sector, pushing time series from the edge to the cloud and now into analytics. Our investors believe in our vision for time series to power the most sophisticated and large-scale analytics use cases our customers and community can imagine.”
Headquarters: Campbell, Calif.
CEO: Rohit Choudhary
Funding: The $50 million Series C funding round brought the company’s total funding to nearly $100 million.
Investors : The round was led by March Capital with additional investment from Sanabil Investments, Industry Ventures and existing investor Insight Partners.
What the company does: Acceldata develops an enterprise data observability platform.
CEO Quote: “Data teams are building revenue-generating, mission-critical data products but are missing purpose-built observability solutions to operate their data ecosystem. We are rapidly innovating to enable enterprises with a comprehensive data observability platform, providing visibility across the supply chain of data.”
Headquarters: San Jose, Calif.
CEO: Shekar Ayyar
Funding: The Series D equity financing round brings to $50 million the total capital raised since the last venture financing round.
Investors: The latest round was led by Prosperity7 Ventures with participation from existing investors Clear Ventures, General Catalyst, Liberty Global and Lightspeed, as well as Silicon Valley Bank, which provided credit facilities.
What the company does: Arrcus develops hyperscale networking software, including the Arrcus Connected Edge (ACE) platform that offers an alternative to routers and other networking hardware.
CEO Quote: “Leading global customers are making the shift to Arrcus’ disruptively innovative ACE platform for data center switching, 5G carrier routing and multi-cloud networking. As we continue gaining market momentum, we are pleased to welcome Prosperity7 as our new lead investor. With its extensive global reach, Prosperity7 is a great investor and partner for us in its ability to support us in our rapid growth and future investment requirements.”
Headquarters: Menlo Park, Calif.
CEO: Vinoth Chandar
Funding: The $25 million Series A funding round brings Onehouse’s total financing to $33 million.
Investors: The round was co-led by Addition and Greylock, which co-led the company’s seed round.
What the company does: Onehouse provides a cloud-native, fully managed data lakehouse service based on Apache Hudi.
CEO Quote: “Over the past year, we have built a first-of-its-kind cloud product to get data lakes up and running with just a few clicks.”
Headquarters: Sydney, Australia
Co-Founder: Andrew Horsley
Funding: (U.S.) $18 million
Investors: Investors included Breakthrough Victoria, Main Sequence, Investible, Ultratech Capital Partners, MA Growth Ventures, Jelix Ventures, Rampersand and CM Equity Partners.
What the company does: Quantum Brilliance develops room-temperature, miniaturized quantum computing products.
Co-Founder Quote: “Our technology is following the successful path of classical computers, where integrated semiconductor chips allowed the jump from large, fragile mainframes to laptops and smartphones. Our small-form-factor, room-temperature, low-power devices are forging the same path. We are proud [that] our achievement in taking quantum computing from the lab to the data center has been recognized by the investment community.”
Headquarters: San Francisco
CEO: Jorge Torres
Funding: A $16.5 million Series A round that brings the company’s total funding to $24 million
What the company does: MindsDB develops AI tables technology for introducing AI and machine learning into databases, helping data teams and everyday users identify patterns and develop predictions based on data.
CEO Quote: “Over the past 20 years, we’ve seen important revolutions in the world of SaaS, from the rise of web applications to the growth of mobile apps. Now, it’s time for the next revolution in the world of technology: The reinvention of all the systems we use on a daily basis, like email, calendars, CRMs, ERPs, CMSes, telehealth, office documents, etc.—all with AI capacities at their core. This reality is rapidly changing the way we interact with technology and with MindsDB, developers can rapidly create the next wave of AI-centered applications that will transform the way we live and work.”
Headquarters: Oakland, Calif.
CEO: Daniel Loreto
Funding: $10 million in seed funding
Investors: The funding was co-led by Coatue and GV.
What the company does: Jetpack.io, which exited stealth mode in February, builds open-source tools that simplify the development of sophisticated cloud applications.
CEO Quote: “Developers want to be able to quickly build scalable and sophisticated apps in the cloud without having to focus on infrastructure. Unfortunately, as an industry, we’ve made cloud development too complex, forcing developers to learn low-level details of systems like Nix and Kubernetes. Jetpack.io provides developers with easy-to-use building blocks for cloud development, letting them adopt scalable best practices without having to learn complex, low-level details. We plan to make the entire life cycle easier—from setting up development environments in a reproducible way to launching auto-scaling applications.”
Headquarters: Calgary, Alberta
CEO: Guillermo Salazar
Funding: $4.6 million in seed funding
Investors: Arthur Ventures
What the company does: IrisCX develops a smart video platform for virtual product selection, DIY setup and customer support.
CEO Quote: “We are excited to partner with Arthur Ventures because they recognize the huge role virtual service will play in the future. As consumers, we’re often forced to settle for a poor sales and support experience. Things like chatbots and 1-800 numbers are painful. In today’s digital-first world, this kind of customer experience is antiquated and unacceptable. We are pleased that this well-respected firm supports our strategy and believes in the capabilities of our team to solve this problem.”
Headquarters: San Jose, Calif.
CEO: Ahmed Reza
Funding: $2.3 million in seed funding
Investors: Investors included HRC2139 Investments and IRA Capital, along with angel investors Charles Annenberg Weingarten, vice president and director of the Annenberg Foundation and founder of Explore.org; Keith Donald, co-founder of SpringSource; Jason Young, partner at Totally Human; and other angel investors.
What the company does: Yobi develops an AI-powered customer communications “super application” for small businesses.
CEO Quote: “The vision of Yobi is of an AI-augmented business app that utilizes advanced technology to replicate and supplement human intelligence and decision-making abilities, helping to improve sales, customer service and revenue for businesses. We developed Yobi to automate communications and create personalized customer experiences at scale.”