Welcome to the “digital gold rush,” as the market heats up for technology that can help customers make sense of the mountains of emails, sales records, social media posts, network logs, and any other kind of data that’s being generated every second in the digital era.
Data from PitchBook, the venture capital database, shows that investors have poured some $40 billion into startups in the data analytics industry — all of which are going after a piece of what PitchBook itself pegs as a $240 billion industry. It makes for a hot sector in the already-hot market for enterprise startups.
Insider asked top VCs from firms including Scale Venture Partners, Norwest Venture Partners, and Lightspeed Venture Partners to name the most promising data startups that they think will soar in 2021 — both inside and outside their portfolios. Those investors named companies both small and large, including relatively well-funded players like Dataiku, Exabeam, and ThoughtSpot, as well as more early-stage firms like Streamlit or Tamr.
These startups are hustling to stand out of the pack by focusing on different approaches around securing data, making sure their customers can comply with regulations like Europe’s GDPR, and balancing the collection and analysis of personal data with the need to maintain privacy and security.
“There’s really a big trust issue with data,” Derek Zanutto, general partner at CapitalG (formerly Google Capital), told Insider. “We’re seeing increasingly a number of solutions pop up to tackle this issue.”
From the investors’ nominations, we created a list of the most impressive venture-backed firms, organized alphabetically, that are taking on the ever-expanding data analytics market. We took estimates of their total funding from PitchBook, unless otherwise specified.