Amperity Raises $100M at $1B+ Valuation

The Shift Towards First-Party Data and Amperity's Growth

For numerous organizations, regulatory bodies, and platforms, the reliance on cookies and third-party data sources is diminishing, leading to increased attention on technologies that empower companies to independently manage their customer information. A company focused on developing tools for this purpose has recently announced a substantial funding round, highlighting its expansion.

Amperity's Funding and Client Base

Amperity, a provider of a customer data platform (CDP), has secured $100 million in funding, achieving a valuation exceeding $1 billion. The company primarily collaborates with large, consumer-facing enterprises, including Starbucks, Wyndham Hotels & Resorts, and Patagonia, among approximately 100 others.

This Series D funding round, spearheaded by HighSage Ventures with participation from existing investors like Tiger Global Management, Declaration Partners, Madrona Venture Group, and Madera Technology Partners, elevates Amperity’s total funding to $187 million. This investment arrives two years following the company’s $50 million Series C funding.

Increased Online Activity and Data Leverage

The surge in online activity and e-commerce over the past year has intensified the focus on the data companies collect about their users and how they can effectively utilize this information for growth. Amperity reported a 100% increase in annual recurring revenues in 2020, driven partly by growing interest in leveraging customer data.

This shift is occurring as traditional methods of data collection are becoming less viable.

The Transition from Third-Party to First-Party Data

Kabir Shahani, CEO and co-founder of Amperity alongside CTO Derek Slager, asserts that the move away from third-party data towards first-party data is a key driver of the company’s long-term growth.

Shahani acknowledged that the COVID-19 pandemic contributed to this trend, but emphasized that the core validation lies in the viability of their initial concept.

Addressing Data Silos and Connectivity

The founders identified a long-standing problem: the dependence on, and limitations of, third-party cookies. They initially anticipated a solution already existed, but discovered a significant gap in the market.

The primary challenge was that data resided in isolated silos, lacking connectivity, making it difficult to utilize effectively. Amperity’s solution focuses on establishing connectivity to consolidate data from these silos and create actionable insights.

This approach shares similarities with Quantexa, another company that recently received funding and is also targeting the customer data platform market, initially focusing on fraud detection.

AI and Machine Learning in Data Integration

Like Quantexa, Amperity employs a big-data approach, leveraging artificial intelligence to address the complexities of data integration.

Shahani explained that the core issue is a complex computer science problem, as customer data utilizes diverse identifiers – phone numbers, addresses, emails, and more. Connecting this disparate data requires a unified key, which hadn’t been achieved previously.

To overcome this, Amperity utilized machine learning, engaging a leading researcher in probabilistic data to develop the models that power their service.

Market Opportunity and Investor Confidence

The customer data platform market is substantial, valued at over $114 billion, attracting investment from firms like Tiger Global Management.

John Curtius, partner at Tiger Global Management, stated, “Amperity represents the future of how customer data can benefit both consumers and businesses by offering the most comprehensive AI-driven CDP on the market today.” He further noted the company’s ability to deliver significant value to prominent consumer brands and attract top talent, including the addition of Starbucks CEO Kevin Johnson to its board.