Cloud data platform giant Snowflake raises $479M at $12.4B valuation, partners with Salesforce

Snowflake CEO Frank Slootman. (Snowflake Photo)

Data warehousing startup Snowflake Computing announced a $479 million funding round that gives the cloud company a whopping $12.4 billion valuation.

Dragoneer Investment Group — a backer of Airbnb, Slack, Spotify, Uber and other giants — led the Series G round and Salesforce Ventures participated for the first time. Snowflake also announced a new partnership with Salesforce; details of that deal will be announced in June.

San Mateo, Calif.-based Snowflake previously raised a $450 million funding round in October 2018 at a $3.9 billion valuation. Total funding to date is $1.4 billion.

Snowflake’s data warehouse is a specialized type of database built for analytical applications. The company has more than 3,400 customers including Brex, ConAgra Foods, Domino’s, JetBlue, and Nationwide. It has 26 offices worldwide, including a Seattle hub, and is now one of the most valuable private tech startups in the world.

Snowflake partners and also competes with other cloud giants such as Amazon Web Services, Microsoft Azure, and Google Cloud.

Longtime Microsoft executive Bob Muglia previously led Snowflake as CEO for five years but stepped down in May 2019. Frank Slootman, who ran ServiceNow as chairman and CEO from 2011 to 2017, now leads the company.

“We look forward to Dragoneer’s experience and insights as we continue to serve our customers and grow our business,” Slootman said in a statement. “We also welcome our partnership with Salesforce and look forward to the positive impact our technologies and services will deliver to our customers and the broader market.”

Existing investors including Seattle-based Madrona Venture Group; Altimeter Capital; ICONIQ Capital; Redpoint Ventures; Sequoia; and Sutter Hill Ventures are expected to participate in a second closing within a few weeks.

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