Data streaming provider Confluent has raised a $125 million Series D funding round, led by Sequoia, with participation from other major investors, Index Ventures and Benchmark.
The company is now valued at $2.5 billion and was originally spun off from LinkedIn in 2014 where CEO Jay Kreps worked as a principal staff engineer.
According to the company, 7 of the 10 world’s largest banks use Confluent, along with 8 of the 10 largest insurance companies and 9 of the 10 largest telecom companies.
“Confluent is the fastest growing enterprise subscription company by revenue since launch that we have partnered with to date,” said Matt Miller, Partner at Sequoia and Confluent board member. “The enterprise market has awoken to the competitive advantage real-time event streaming can provide. Companies are rushing to gain access to this benefit and Confluent and its offerings are becoming the core critical event streaming platform for some of the largest companies in the world.”
In the digital age, events are everywhere. Companies have moved to a more dynamic technology and services-based business model, which means transactions have become event-driven, real-time and complex. For example, ordering a taxi used to encompass a phone call and a transaction at the end of a trip with cash as the typical form of payment. Today, ordering a car via an application entails real-time data about car location, estimated traffic times, ongoing tracking of a live trip, serving up driver and user specifics in terms of reputation and contact details, real-time communication capabilities, and the ability to pay and tip a driver via a payments infrastructure, among many other things. The same is true about every digital action – managing bank balances, booking a flight, taking inventory and connecting distributed IoT applications – they all trigger events.
Until now, organizations have been trained to think of data the wrong way. Extensive research and innovation went into making databases fast, scalable and reliable, which enabled companies to store and start to make use of ever-growing datasets. However, analyzing this static data meant batch processing after events occurred, and companies were quickly falling behind. Messaging, ETL (extract, transfer, load) and data integration technologies rose to fill the gap between batch processing and real time but predated the architecture standards of modern distributed systems. In order to stay competitive and meet customer expectations, businesses today need the full picture of historical data as well as visibility into events taking place in real time. Event streaming solves this fundamental business problem and changes this paradigm to see data as a continually updating stream of events, enabling organizations to build an entirely new category of event-driven applications, as well as an universal event pipeline. This architecture is central to every company’s path to be competitive in the modern world.
Founded by the original creators of Apache Kafka, Confluent helps organizations thrive in this new world and run their businesses in real time. With Confluent, organizations benefit from the first event streaming platform built for the enterprise with the ease-of-use, scalability, security and flexibility required by the most discerning global companies. Companies leading their respective industries have realized success with this new paradigm to transform their architectures to streaming from batch processing, spanning on-premises and multi-cloud environments.
“Industry-leading companies are re-architecting their businesses around real-time events,” said Jay Kreps, co-founder and CEO at Confluent. “With Confluent, companies can connect all of their applications and data sources, enabling them to react and engage their customers in a faster, more personalized and more efficient manner. We think event streaming has the opportunity to become as big a category in infrastructure technology as databases, and we’re excited to be creating that future.”