SafeGraph Raises $45M to Expand Location Data Services

SafeGraph Secures $45 Million to Enhance Location Data Services

Auren Hoffman, CEO of SafeGraph, emphasizes that his company distinguishes itself by providing location data specifically tailored for data science teams, a niche not widely served by competitors.

Traditionally, location data has primarily been marketed towards advertising purposes. Within this sector, a data accuracy rate of 40% to 50% is often considered acceptable. However, this level of precision is insufficient for the demands of data scientists who require reliable information for building sophisticated models and algorithms.

Rigorous Data Collection and Core Business Focus

SafeGraph employs a “very, very rigorous approach” to data acquisition. This involves systematically collecting and integrating information from over 20,000 sources, including business directories, pedestrian traffic patterns, and building outlines.

Unlike other companies where location data represents a secondary revenue stream, Hoffman asserts that it constitutes 100% of SafeGraph’s income. This dedicated focus allows for continuous improvement and investment in data quality.

Diverse Applications and Notable Clients

SafeGraph’s data finds application across a broad spectrum of industries, including GIS/mapping, local search optimization, financial analysis, and logistical operations.

Among its clientele are prominent organizations such as investment firm Ares Management, food distributor Sysco, and Choice Hotels. Ben Anderson, Sysco’s senior manager of market intelligence, has publicly stated that SafeGraph provides “the most comprehensive and actionable POI dataset” available.

Furthermore, the company reports that its data is utilized by over 7,000 data scientists and has been referenced in more than 300 academic research papers.

Series B Funding and Expansion Plans

SafeGraph recently announced the completion of a $45 million Series B funding round, spearheaded by Sapphire Ventures. This brings the company’s total funding to $61 million.

Previous investors, including Alex Rosen of Ridge Ventures, DNX Ventures, and Peter Thiel, also participated in this funding round.

Cathy Gao, a Partner at Sapphire Ventures, commented that SafeGraph has rapidly established itself as a key player in the geospatial data industry. She highlighted the company’s commitment to delivering high-quality places data to data science teams, which has fostered trust among major institutions.

Financial Efficiency and Future Growth

Hoffman revealed that SafeGraph has maintained strong financial discipline, incurring only $3 million in losses over the past two years. The new funding will primarily be used to accelerate growth initiatives.

These plans include expanding into international markets, starting with a launch in the U.K. in April, and potentially pursuing strategic acquisitions.

Hoffman also emphasized the increasing importance of accurate data in a post-COVID-19 environment, particularly given the widespread business closures and altered operating hours.

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