HashiCorp scores $100M investment on $1.9 billion valuation

HashiCorp, the company that has made hay developing open-source tools for managing cloud infrastructure, obviously has a pretty hefty commercial business going too. Today the company announced an enormous $100 million round on a unicorn valuation of $1.9 billion.

The round was led by IVP, whose investments include AppDynamics, Slack and Snap. Newcomer Bessemer Venture Partners joined existing investors GGV Capital, Mayfield, Redpoint Ventures and True Ventures in the round. Today’s investment brings the total raised to $179 million.

The company’s open-source tools have been downloaded 45 million times, according to data provided by the company. It has used that open-source base to fuel the business (as many have done before).

“Because practitioners choose technologies in the cloud era, we’ve taken an open source-first approach and partnered with the cloud providers to enable a common workflow for cloud adoption. Commercially, we view our responsibility as a strategic partner to the Global 2000 as they adopt hybrid and multi-cloud. This round of funding will help us accelerate our efforts,” company CEO Dave McJannet said in a statement.

To keep growing, it needs to build out its worldwide operations and that requires big bucks. In addition, as the company scales that means adding staff to beef up customer success, support and training teams. The company plans on making investments in these areas with the new funding.

HashiCorp launched in 2012. It was the brainchild of two college students, Mitchell Hashimoto and Armon Dadgar, who came up with the idea of what would become HashiCorp while they were still at the University of Washington. As I wrote in 2014 on the occasion of their $10 million Series A round:

After graduating and getting jobs, Hashimoto and Dadgar reunited in 2012 and launched HashiCorp. They decided to break their big problem down into smaller, more manageable pieces and eventually built the five open source tools currently on offer. In fact, they found as they developed each one, the community let them know about adjacent problems and they layered on each new tool to address a different need.

HashiCorp has continued to build on that early vision, layering on new tools over the years. It is not alone in building a business on top of open source and getting rewarded for their efforts. Just this morning, Neo4j, a company that built a business on top of its open-source graph database project, announced an $80 million Series E investment.

Rockset launches out of stealth with $21.5 M investment

Rockset, a startup that came out of stealth today, announced $21.5M in previous funding and the launch of its new data platform that is designed to simplify much of the processing to get to querying and application building faster.

As for the funding, it includes $3 million in seed money they got when they started the company, and a more recent $18.5 million Series A, which was led by Sequoia and Greylock.

Jerry Chen, who is a partner at Greylock sees a team that understands the needs of modern developers and data scientists, one that was born in the cloud and can handle a lot of the activities that data scientists have traditionally had to handle manually. “Rockset can ingest any data from anywhere and let developers and data scientists query it using standard SQL. No pipelines. No glue. Just real time operational apps,” he said.

Company co-founder and CEO Venkat Venkataramani is a former Facebook engineer where he learned a bit about processing data at scale. He wanted to start a company that would help data scientists get to insights more quickly.

Data typically requires a lot of massaging before data scientists and developers can make use of it and Rockset has been designed to bypass much of that hard work that can take days, weeks or even months to complete.

“We’re building out our service with innovative architecture and unique capabilities that allows full-featured fast SQL directly on raw data. And we’re offering this as a service. So developers and data scientists can go from useful data in any shape, any form to useful applications in a matter of minutes. And it would take months today,” Venkataramani explained.

To do this you simply connect your data set wherever it lives to Rockset and it deals with the data ingestion, building the schema, cleaning the data, everything. It also makes sure you have the right amount of infrastructure to manage the level of data you are working with. In other words, it can potentially simplify highly complex data processing tasks to start working with the raw data almost immediately using SQL queries.

To achieve the speed, Venkataramani says they use a number of indexing techniques. “Our indexing technology essentially tries to bring the best of search engines and columnar databases into one. When we index the data, we build more than one type of index behind the scenes so that a wide spectrum of pre-processing can be automatically fast out of the box,” he said. That takes the burden of processing and building data pipelines off of the user.

The company was founded in 2016. Chen and Sequoia partners Mike Vernal joined the Rockset board under the terms of the Series A funding, which closed last August.

DeepMap, a maker of HD maps for self-driving, raised at least $60M at a $450M valuation

As car and tech companies continue to make inroads on vehicles and services to build autonomous driving systems, a startup that is creating high-definition maps to help these vehicles move around has quietly picked up a significant round of funding.

DeepMap — a Palo Alto startup co-founded by James Wu and Mark Wheeler, who previously helped build maps and more at Google, Apple and Baidu — has raised a significant round of growth funding at a valuation of at least $475 million to expand its technology stack and its reach into more markets beyond its current footprint of the U.S. and China.

Founded in 2016, DeepMap has been relatively quiet since raising $25 million in 2017, but news about this round has been trickling out for the last few months. In July, the company filed papers for a $60 million Series B round. In August, it noted that Nvidia had joined the round, which by that point was “oversubscribed” but still not closed.

And today, Generation Investment Management — the VC firm that counts former Vice President Al Gore and others among its co-founders — also confirmed that it is part of that Series B, along with previous investors Andreessen Horowitz, Accel Partners and GSR Ventures, and new investor Robert Bosch Venture Capital. PitchBook notes that the round puts the valuation of DeepMap at $450 million post-money. However, with Generation added to the mix, both the size of the Series B and the valuation might be higher.

We’ve asked and Generation and DeepMap are not disclosing those details, but they have said that the investment is being made because the interests of the startup are in line with that of the VC.

“DeepMap and Generation share the deeply-held belief that autonomous vehicles will lead to environmental and social benefits,” said Wu, who is the CEO of DeepMap (Wheeler is the CTO), in a statement. “We are delighted to work with the talented team at Generation. We consider Generation to be a value-added investor, whose insights and mission-aligned network will be of great advantage as we scale, especially in Europe.”

DeepMap is not exactly in stealth mode, but it also doesn’t disclose much about what it is working on specifically, nor how the funding will be used. (But it is hiring, mostly in engineering roles, in Palo Alto and Beijing.)

Companies like Waymo are expanding their autonomous driving tests, Lyft is buying companies to help ingest more driving data more easily and just this week Baidu announced new car plans with Volvo and Ford, but there are still some crucial pieces that need to be put in place for self-driving to become a wide-scale reality, and one of them is building systems that have an accurate reading of the roads they are driving on.

HD mapping will play a key role in that regard, helping make systems more accurate with real-time localization features that respond to road types and driving conditions. DeepMap says that it provides centimeter-specific accuracy using “real-world data, not models” and the ability to incorporate 3D landmark features and full 3D environments using “true LiDAR intensity and RGB values data” for simulation tools.

While DeepMap does not detail its products on its site, one report describes its offering as including hardware tools, software solutions, field data collection services, and a service that is able to translate the self-driving fleet data that companies are now in the process of collecting “into their own personalized HD maps.” The same report claimed that DeepMap charges about $5,000 per kilometer for mapping services in the U.S.

DeepMap is also not the only company working on addressing this need for better and more accurate mapping: mapping startup Camera is also raising money to build its service; DeepMap’s investor Nvidia is also working on this problem; and lvl5 is another name we’ve also seen mentioned in this context.

The funding, and these partnerships, will likely help DeepMap cement its position on the map, so to speak, as all of these continue to grow.

“DeepMap is perfectly placed to address the imminent needs of autonomous vehicles. These vehicles will require HD maps and localization modules which are real-time, scalable, economically-viable, and machine-readable, something which DeepMap can deliver through its unique approach,” said Lilly Wollman, co-head of Generation’s Growth Equity team, in a statement. “We are very excited to partner with one of the most technically impressive and experienced teams in the industry.”