Cockroach Labs, makers of CockroachDB, have had a good year financially. It began the year with a $160 million Series E at a $2 billion valuation. It completed the year with a $278 million Series F at a $5 billion valuation, more than doubling the company’s worth in less than a year.
Greenoaks led the new round, including Altimeter, Bond, Benchmark, Coatue, FirstMark, GV, Index Ventures, J.P. Morgan, Lone Pine Capital, Redpoint Ventures, and Tiger Global. They were also participants in the previous round. The firm claims to have raised $633 million in total, with over $550 million coming from three rounds, the first of which was an $86.6 million round in May 2020.
“You want to have investors that understand the business from their own perspective. They’re asking us to invest as opposed to us trying to convince them that our business is the right one to invest in. That gives a very, I say, complementary [relationship where] their perspective ultimately adds to our perspective,”Spencer Kimball, co-founder and CEO of the company.
The company claims to have 200 paying clients, with the cloud side of the business increasing by 500% year over year and ARR tripling from Q3 to Q3. While the self-hosted version still generates the majority of revenue, the company anticipates the hosted version to expand quicker in the future. They also have a serverless solution that was released in beta in October.
According to the company, cloud-native businesses saw considerably more significant revenue growth from their hosted versions than self-installed ones.