Dataminr Secures $85M Funding to Fuel Growth - AI News

Dataminr Secures $85 Million in Funding

Dataminr, a prominent data analytics firm serving clients such as NATO and OpenAI, has announced the successful acquisition of $85 million through a blend of convertible financing and credit facilities. This information was released by the company on Wednesday.

While a substantial sum, this investment represents a relatively modest amount for Dataminr, which previously secured $475 million in funding at a $4.1 billion valuation in 2021.

Navigating Economic Challenges and AI Focus

The company has experienced both periods of growth and challenges. In November 2023, Dataminr implemented a workforce reduction of 20% as a strategic response to prevailing economic pressures and a renewed commitment to artificial intelligence (AI) development.

CEO Ted Bailey explained to TechCrunch that the new capital will facilitate accelerated growth and offer investors favorable terms relative to a potential initial public offering (IPO) or future financing rounds.

Expansion Plans and Investment Details

The funding will also be allocated to broaden the company’s international market reach across Europe, the Middle East, and Asia. Furthermore, it will support the development of additional products tailored to new industry sectors.

This financing round was spearheaded by NightDragon, a venture capital firm specializing in security, and HSBC. It is structured as “pre-IPO convertible financing,” meaning a valuation has not yet been established.

NightDragon also established a special-purpose vehicle (SPV) to facilitate an additional $100 million in convertible financing, drawing contributions from the VC’s affiliates and partners.

SPVs represent an alternative fundraising approach, enabling multiple investors to consolidate their capital for a single, larger investment.

Company Overview and Capabilities

Founded in 2009 by Ted Bailey, Sam Hendel, and Jeff Kinsey – all Yale University alumni – Dataminr is dedicated to monitoring real-time events globally.

The New York-based company delivers tools designed to support effective responses to crisis situations. These tools analyze text, images, videos, audio, and sensor data to create concise event summaries.

Dataminr has achieved considerable success, currently serving over 800 customers, including a significant portion of Fortune 50 companies and 1,500 news organizations.

The company is nearing $200 million in annual recurring revenue and holds a five-year, $282 million contract with the U.S. Department of Defense.

Controversies and Ethical Considerations

However, Dataminr’s history includes instances of controversy.

Reports from The Intercept indicate that Dataminr has provided social media surveillance data regarding lawful protests supporting abortion rights to the U.S. Marshals.

Law enforcement agencies are also alleged to have utilized Dataminr’s services for surveillance during Black Lives Matter demonstrations. Furthermore, the company has faced accusations of disseminating inaccurate information, such as incorrect reports concerning the status of U.S. military personnel in Western Iraq.

Dataminr maintains that it is continuously refining its technology and does not provide features that would allow customers to pinpoint the precise location of individuals or protestors on a map.

A company spokesperson stated via email that their AI technology supports security operations across the federal government, OpenAI, humanitarian efforts at the United Nations, and security provisions for major global events like the Super Bowl and the Olympics.

Funding History

Prior to this latest funding round, Dataminr had raised a total of $1.1 billion in venture capital, as documented by Crunchbase.

Note: This article was updated on March 19th at 12:16 p.m. Pacific time to correct a misattribution of a quote. The quote was originally attributed to Ted Bailey but was, in fact, provided by a company spokesperson. We apologize for this error.