We first met the Snowflake team three years and three months ago. At the time, Snowflake was at a sub-$10M revenue run rate, and we were skeptical that the world needed another data warehouse, given the number of other data warehouses from both the cloud providers and legacy on-prem competitors.
However, after meeting the team and speaking with early customers, we realized that Snowflake was a must-have product for next generation intelligent applications. By rebuilding the data warehouse from the ground up with cloud-first design principles, modern enterprises can benefit from both higher throughput and speed as well as better concurrent queryability, and for any data-driven company, Snowflake’s product is a must-have, not a nice-to-have.
At the time, Snowflake also wanted to take a bet on the Seattle ecosystem to build stronger relationships with the cloud providers and to tap into the local talent pool of systems and database engineers.
So given the combination of technically superior product, early but strong customer traction, the perfect team for the space, and our ability to support their growth in Seattle, we decided to invest in the company.
Today, we are excited to announce Snowflake’s $479M funding round, led by Dragoneer Investment Group and Salesforce Ventures.
Despite Snowflake being the fastest growing enterprise company we have ever seen at Madrona, it still feels like it’s early days for Snowflake, and we are looking forward to the next chapter of their journey.