The common enterprise at this time makes use of about 90 completely different software program packages, with between 30-40 of them touching clients instantly or not directly. The knowledge that comes out of these programs can show to be very helpful — to assist different programs and staff work extra intelligently, to assist corporations make higher enterprise selections — however provided that it’s put so as: now, a startup referred to as Tealium, which has constructed a system exactly to just do that and works with the likes of Facebook and IBM to assist handle their buyer knowledge, has raised an enormous spherical of funding to proceed constructing out the providers it gives.
Today, it’s asserting a $55 million spherical of funding — a Series F led by Silver Lake Waterman, the agency’s late-stage capital development fund; with ABN AMRO, Bain Capital, Declaration Partners, Georgian Partners, Industry Ventures, Parkwood and Presidio Ventures additionally taking part.
Jeff Lunsford, Tealium’s CEO, mentioned the corporate isn’t disclosing valuation, however he did say that it was “substantially” larger than when the corporate was final priced three years in the past. That valuation was $305 million in 2016, in line with PitchBook — a determine Lunsford didn’t dispute once I spoke with him about it, and a supply near the corporate says it’s “more than double” this final valuation, and really round $850 million.
He added that the corporate is near profitability and is projected to make $100 million in revenues this yr, and that that is being thought-about the corporate’s “final round” — presumably an indication that it’s going to both not want exterior funding and that if it does, the subsequent step is perhaps both getting acquired or going public.
This brings the full raised by Tealium to $160 million.
The firm’s rise during the last eight years has dovetailed with the fast development of huge knowledge. The motion of providers to digital platforms has resulted in a sea of data. Much of that largely sits untapped, however those that are in a position to deliver it to order can reap the rewards by gaining higher insights into their organizations.
Tealium had its beginnings in amassing and ordering tags from web site visitors to assist optimise advertising and marketing and so forth — a enterprise the place it competes with the likes of Google and Adobe.
Over time, it has expanded and capitalised to a a lot wider set of knowledge sources that vary properly past net and commerce, and one use of the funding shall be to proceed increasing these knowledge sources, and in addition how they’re used, with an emphasis on utilizing extra AI, Lunsford mentioned.
“There are new areas that touch customers like smart home and smart office hardware, and each requires a step up in integration for a company like us,” he mentioned. “Then once you have it all centralised you could feed machine learning algorithms to have tighter predictions.”
That huge potential is one purpose for the investor curiosity.
“Tealium enables enterprises to solve the customer data fragmentation problem by integrating and enriching data across sources, in real-time, to create audiences while providing data governance and fidelity,” mentioned Shawn O’Neill, managing director of Silver Lake Waterman, in an announcement. “Jeff and his team have built a great platform and we are excited to support the company’s continued growth and investment in innovation.”
The fast development of digital providers has already seen the corporate getting an enormous increase when it comes to the information that’s passing by means of its cloud-based platform: it has had a 300% year-over-year improve in customer profiles created, with present tech clients together with the likes of Facebook, IBM, Visa and others from throughout a wide range of sectors, resembling healthcare, finance and extra.
“You’d be surprised how many big tech companies use Tealium,” Lunsford mentioned. “Even they have a limited amount of bandwidth when it comes to developing their internal platforms.”
People wish to say that “data is the new oil,” however lately that expression has taken on maybe an unintended that means: identical to the overconsumption of oil and fossil fuels normally is considered as detrimental to the long-term well being of our planet, the overconsumption of knowledge has additionally change into a really problematic spectre in our very pervasive world of tech.
Governments — the European Union being one notable instance — are taking on the problem of that latter difficulty with new rules, particularly GDPR. Interestingly, Lunsford says this has been factor reasonably than a foul factor for his firm, because it provides a a lot clearer directive to corporations about what they will use, and the way it may be used.
“They want to follow the law,” he mentioned of their purchasers, “and we give them the information freedom and management to try this.” It’s not the one firm tackling the enterprise alternative of being a big-data repository at a time when knowledge misuse is being scrutinised greater than ever: InCountry, which launched weeks in the past, can be banking on this hole out there.
I’d argue that this might probably be another reason why Tealium is eager on increasing to areas like IoT and different sources of buyer data: identical to the ocean, the pool of knowledge that’s there for the tapping is sort of limitless.