The California cloud-computing data software company, led by former Microsoft executive Bob Muglia, has pulled in $100 million in venture capital a week after announcing it opened a new Bellevue office.
Snowflake, the cloud computing data software company led by former Microsoft executive Bob Muglia, has taken in $100 million in additional venture-capital funding.
The funding round comes a week after the California company announced it had opened a Bellevue office, and the cash will help fuel hiring there, the company says.
Snowflake sells web-based database tools that allow companies to store and manage virtual databases that don’t require upkeep of their own servers. The service is powered by Amazon Web Services data centers.
The company’s Bellevue office, led by former Microsoft engineer Leo Giakoumakis, is a bid to hire talent from the large pool of software developers with cloud-computing expertise at Amazon.com and Microsoft.
Most Read Business Stories
- Ramp-up planned for LEAP engines that power Boeing's 737 MAX and other narrowbody jets
- Airbus CEO Enders says challenge to Boeing will grow even stronger
- How much will it cost you to sell your house?
- Bitter legal fight roils Harley Marine Services, a big player on Seattle waterfront
- I used Apple’s new controls to limit a teenager’s iPhone time (and it worked!)
The office is Snowflake’s latest outpost in the Seattle area, which is home to a growing presence of Google and Facebook engineers, as well as startups. The new space also opens the option for a shorter commute for Muglia, who splits time between his Mercer Island home and Snowflake’s headquarters in the Bay Area.
“Obviously the talent base is excellent,” Muglia said of the Seattle area in a recent interview. “There aren’t a lot of places that have systems people. We really believe in Seattle.”
Muglia said the company plans to hire 10 to 15 people here this year. Snowflake, based in San Mateo, Calif., has about 175 employees, mostly in the Bay Area.
The new investment round announced Wednesday, led by Iconiq Capital, includes cash from Seattle investor Madrona Venture Group, as well as existing Snowflake investors including Altimeter Capital, Redpoint Ventures and Sutter Hill Ventures. The haul brings the company’s total venture-capital fundraising to $205 million, Snowflake said.
Muglia joined Microsoft in 1988 and ultimately led what was then called Microsoft’s Server & Tools business before leaving in 2011. Afterward, he worked at Juniper Networks and joined Snowflake in 2014.
Madrona’s investment in Snowflake is a break from the venture-capital firm’s habit of favoring early-stage, Northwest-based companies, managing director S. “Soma” Somasegar said in a blog post on the investment.
Snowflake’s tools are built from scratch to live in a cloud-computing environment of on-demand processing power and data storage, a contrast to — and potential advantage over — existing software that has to be re-engineered to work in the cloud, Somasegar said.
“We are still in the early phases of this tectonic computing shift,” he said.