Software startup scores biggest VC deal of the year

A spunky CEO, a beloved product, and a cheeky billboard: That’s how software company Databricks became one of the most valuable private companies in the world. This week, it raised $10 billion—one of the largest fundraising rounds in Silicon Valley history—that values the company at $62 billion.

What’s Databricks? Your favorite company’s favorite company. Databricks software enables companies to sift through vast data that needs more sophisticated analysis than a Google Sheets pivot table. It’s used by a range of corporations, from Walgreens to the MLB’s Texas Rangers, and it’s beloved by engineers—many of whom say they couldn’t do what they do without it.

How it got here: Databricks has become Silicon Valley royalty under CEO Ali Ghodsi, who’s implemented a cost-cutting strategy and made a series of successful acquisitions:

• It had 60% year over year revenue growth last quarter.
• The company expects over $3 billion in annualized revenue for the fiscal year ending in January.

What’s next? Opinions are mixed on whether Databricks will go public now that it’s received a cool $10 billy from big-name VC backers like Andreessen Horowitz and Thrive Capital. But it’s setting itself up well: The cash will be used to buy back employees’ company shares and offset the taxes, a key to retaining big talent.