Firebolt raises $127M in a Series B round

SaaS News -Firebolt-raises-$127M (source: SaaS Industry)
At a Glance

Firebolt, an Israeli cloud data warehousing platform, raised $127 million in a Series B financing round. According to the company, its SQL-based solution is up to 182 times faster than existing data warehouses and is based on academic research that has yet to be applied. Its clients are already cloud-native, Big Data organizations, so it’s not trying to convert them; instead, it’s collaborating with those who are already there.

Firebolt, an Israeli cloud data warehousing platform, has raised $127 million in a Series B funding round. The participants in the round include new investors K5 Global and Dawn Capital; with existing investors Zeev Ventures, Bessemer Venture Partners, TLV Partners, and Angular Ventures.

In December, the company, which came out of stealth mode in December, has raised $164 million so far and is not disclosing its current valuation.  

While data warehousing has become a vital means for companies to analyze, update, and manage their huge data warehouses, most data warehousing systems are inefficient and expensive to operate.

The three Firebolt founders, Eldad Farkash (CEO), Saar Bitner (COO), and Ariel Yaroshevich (CTO), witnessed the problem personally while working at Sisense, a business intelligence powerhouse, where they were each one of its co-founders and two members of its founding team. Sisense was constantly confronted with a problem: when dealing with terabytes of data, cloud data warehouses were straining to offer adequate performance to power their analytics and other tools. The only option to potentially alleviate this was to pile on additional cloud capacity. And it began to cost a lot of money.

Firebolt set out to change that by rethinking the concept and taking a fresh approach. While data warehousing was a significant accomplishment in Big Data, Farkash believes that it has begun to feel like an obsolete solution as data troves have increased.

The firm says that its SQL-based system is up to 182 times quicker than existing data warehouses. It is based on academic research that has yet to be implemented anywhere, using novel compression and parsing techniques to process data more efficiently. Data lakes, in turn, may be connected to a larger data ecosystem, resulting in a much-reduced demand for cloud capacity and reducing costs. 

I’ve been an investor at Firebolt since their Series A round and before they had any paying customers. What had me invest in Firebolt is mostly the team. A group of highly experienced executives mostly from the big data space who understand the market very well and the pain organizations are experiencing. In addition, after speaking to a few of my portfolio companies and Firebolt’s initial design partners, it was clear that Firebolt is solving a major pain, so all in all, it was a fairly easy decision.

Oren Zeev, the founding partner of Zeev Ventures

He added that when the values of Snowflake and Databricks are considered, the market in which Firebolt works is enormous. More significantly, it is quickly expanding as the move from on-premise data warehouse solutions to the cloud gains traction and as more organizations rely on data for their operations and develop data applications.

Talking about the company’s customers, Mr. Farkash, CEO and co-founder, told Techcrunch that most of them are headquartered in the United States, and their numbers had risen from the dozen or so who used Firebolt when it was still in stealth mode. The company worked quietly for a couple of years building its product and onboarding customers before finally launching six months ago. Its customers are already cloud-native, Big Data businesses, so it’s not attempting to convert them to the basic notion but rather working with those already there.  

If you’re not using Snowflake or BigQuery already, we prefer you come back to us later.

Mr. Farkash, CEO and co-founder
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