Fivetran nears five times its unicorn valuation as it plans further growth

20 Sep 2021

George Fraser, CEO, Fivetran. Image: Fivetran

The data integration business growing its EMEA HQ in Dublin is set for further expansion following a $5.6bn valuation and key acquisition.

Silicon Valley-headquartered Fivetran has announced $565m in Series D funding alongside a deal to acquire HVR.

This latest funding round sees the automated data integration provider’s value reach $5.6bn just over a year after it first reached unicorn status.

The funding round from new and existing investors included General Catalyst, CEAS Investments and Matrix Partners. Andreessen Horowitz led the round, which also brought in new investors Iconiq Capital, D1 Capital Partners and YC Continuity.

In total, Fivetran has raised $730m to date. And in tandem with its Series D funding round, the company also announced a $700m cash and stock deal to acquire data replication business HVR.

‘Without an always-on, accurate and reliable way to centralise data, global organisations aren’t maximising the use of data or data infrastructure’
– MARTIN CASADO, A16Z

For Fivetran’s mission to help businesses make use of the data they have, in a way that is quicker and requires fewer resources, HVR brings database replication performance along with enterprise-grade security.

“HVR is a recognised leader for enterprise database replication and shares our same vision – to make access to data as simple and reliable as electricity,” said Fivetran CEO George Fraser. “Their product is the perfect complement to our automated data integration technology and will be instrumental for us to help enterprise organisations that want to improve their analytics with a modern data stack.”

Fraser added that the latest injection of funding from investors will enable the company to expand its capabilities and accelerate its global growth.

Fivetran established its EMEA HQ in Dublin in 2018. The following year, fresh investment saw the company plan to double its Irish workforce. Last summer, a $100m funding round saw these expansion plans furthered.

In terms of market opportunity, Andreessen Horowitz general partner Martin Casado says Fivetran is a “critical component” of the modern data stack, which represents “a paradigm shift for global enterprises, with billions of dollars of revenue at stake”.

“Without an always-on, accurate and reliable way to centralise data, global organisations aren’t maximising the use of data or data infrastructure,” said Casado.

The acquisition deal has been approved by the boards of both companies and is expected to close in early October, subject to regular approvals.

Customers from both companies are expected to benefit from each of the business offerings. On the side of Fivetran, this client list includes Autodesk, DocuSign, Forever 21, Lionsgate and Square, while HVR services dozens of Fortune 500 brands.

“Combining HVR and Fivetran will enable a next-generation solution that will better inform business decisions by providing the freshest data available,” said HVR CEO Anthony Brooks-Williams.

“We’re thrilled to be joining forces with Fivetran and look forward to what this incredible opportunity will provide for our growing team, partners and customers.”

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Elaine Burke is the editor of Silicon Republic

editorial@siliconrepublic.com