Fivetran Raises $565M at $5.6B Valuation, Acquires HVR

Fivetran Secures Significant Funding and Expands Through Acquisition

Today marks a substantial milestone for Fivetran, a prominent data connectivity startup. The company announced a new investment totaling $565 million, resulting in a valuation of $5.6 billion.

Furthermore, Fivetran revealed its second acquisition of the year, successfully acquiring HVR, a competing data integration company. HVR had previously secured over $50 million in funding and was obtained for $700 million in a combination of cash and stock.

Rapid Valuation Growth

Fivetran’s previous funding round, a $100 million Series C, valued the company at $1.2 billion. This latest investment represents an increase in valuation exceeding five times its prior level.

Andreessen Horowitz once again spearheaded the funding round, mirroring their involvement in the Series C. Existing investors, including General Catalyst, CEAS Investments, and Matrix Partners, also participated, alongside new investors ICONIQ Capital, D1 Capital Partners, and YC Continuity.

To date, the company has raised a total of $730 million in funding.

Strategic Acquisition of HVR

The acquisition of HVR signifies a considerable investment for Fivetran. The purchase price nearly equals the total capital the company has raised thus far.

This strategic move allows Fivetran to rapidly expand its market presence by integrating a key competitor. Earlier in the year, Fivetran also acquired Teleport Data, continuing its strategy of growth through acquisition and enhanced functionality.

“This acquisition, structured as a cash and stock deal valued at $700 million, reinforces Fivetran’s position as a leading data integration provider across all industries and for diverse customer needs,” stated the company.

Addressing Data Integration Challenges

While presented as a corporate statement, the acquisition addresses a genuine industry need. Many companies struggle with extracting data from disparate and often isolated legacy systems.

Both Fivetran and HVR have developed solutions to facilitate the connection of various data sources, enabling businesses to effectively utilize their data.

The Importance of Data in Modern Enterprise

Data is fundamental to contemporary business practices, including customer experience management. This leverages customer data to personalize interactions and deliver tailored experiences.

Moreover, data serves as the primary input for machine learning models, which rely on it to understand processes and improve performance.

Fivetran and HVR provide the essential infrastructure for data movement, connecting to applications like Salesforce, Box, and Airtable, as well as databases such as Postgres SQL and data repositories like Snowflake or Databricks.

Looking Ahead

The long-term benefits of this expansion remain to be seen. However, Fivetran is confident that increased scale will contribute to its continued success.

The transaction has received approval from both companies’ boards of directors and is currently awaiting standard regulatory clearance. Fivetran anticipates the deal will be finalized in October.