In recent years there has been an explosion of tools that enable companies to connect, transform, analyze and deliver data from all types of sources. This, combined with the increasing pressure on organizations to digitally transform their operations, can result in a patchwork of solutions that are not easy to maintain or scale. Forrester research estimates that 73% of enterprise data is unused and never analyzed, while another study found that 69% of executives had failed to create “data-driven” organizations.
A partial solution could lie in software designed for data management. There are many, but the latest to attract funds is Ataccama, which announced today that it has raised $150 million from Bain Capital Tech Opportunities — which represents a minority stake in the company. A source familiar with the matter tells TechCrunch that the round values Ataccama at $550 million.
Founded in 2007, Ataccama develops enterprise data governance, data catalog, data quality and data management capabilities.
“Ataccama’s growth potential can be rapidly accelerated by expanding its go-to-market functions (brand, marketing, sales, customer success, etc.) — this is the first area where some of the funds will go,” said CEO Michal Klaus TechCrunch in an email interview. “A second major opportunity is continuous product innovation focused on bridging the gap between data democratization and the need for centralized data governance and data quality management. The third area…is tighter integrations with major computing platforms like Snowflake, Databricks, and others.”
Ataccama is a spin-off of data integration systems integrator Adastra. According to Klaus, the founders – David Holes, Jan Mrazek, Jan Cervinka, Petr Jech and himself – saw data quality issues in their data integration projects that caused delays or failures in delivering desired business outcomes to customers. After creating a proof-of-concept product within Adastra, the team decided the opportunity was big enough to start a dedicated, product-driven company: Ataccama.
Ataccama’s platform falls under the Data Fabric category, a combination of technologies that help identify, connect, cleanse and enrich data to reveal the relationships between data points. Among other services, Ataccama offers data quality checks, monitoring and remediation. The platform can automatically discover data from a range of on-premises and public cloud sources, transform that data, and ingest or create metadata (such as lineage) from it.
With Ataccama, users can import and create business term definitions, access policies, data quality rules, data models, and other metadata. Ataccama can process data formats to align with a common standard and continuously report on the status of the data for compliance, aggregation, and visualization. (For example, a technician may receive an alert such as “Record contains many invalid values” or “This record contains credit card information”). The platform can also try to add missing information from external data sources and reference data and fill in gaps in datasets.
“We use AI to enable both technical and non-technical users to find the data they need, understand it, and assess and improve its quality,” said Klaus. “Business and government leaders know that data is a source of innovation and competitive advantage. At the same time, it is neither possible nor optimal to drive data-based innovations centrally. Rather, it must come from empowered teams and individuals — they must have access to all types of data sources and be allowed or even encouraged to use the data, process it, generate insights, build apps, and more. All of this poses a major compliance, security and governance risk.”
Data Fabric has its downsides – most notably the complexity of implementation. For example, data fabrics require the exposure and integration of disparate data and systems that can often format data differently. This lack of native interoperability can cause friction, such as: B. the need to harmonize and deduplicate data.
In addition, Ataccama competes with formidable vendors in the pure data management space. Informatica is public, while Collibra recently raised $250 million to more than double its valuation. There’s also Reltio, which made $100 million in annual recurring revenue this year.
Klaus claims that Ataccama is a bootstrap company that has not received any outside investment up to this point. The Company has approximately 200 corporate customers in banking, financial services, insurance, life sciences, healthcare and retail, with approximately 200 additional business-to-business customers utilizing Ataccama technology provided by OEM partners.
“Ataccama has been operationally profitable since 2011, consistently generating positive cash flow and able to invest in various growth or transformation initiatives. Growth has accelerated over the past 18 months with annual recurring revenue growth of 86% year over year,” said Klaus. “The pandemic itself initially slowed the company’s growth for about six months, but pent-up demand in our technology compensated for this in the two quarters that followed. As for the economy slowing down, we are preparing for different scenarios, but in general the impact could possibly be that the projected growth could be slower. At the same time, we will continue to invest in our product, which will help organizations work more efficiently through automation.”
Dewey Awad, a managing director at Bain Capital Tech Opportunities, added in an emailed statement:
It’s clear that organizations are prioritizing greater control over their data in hybrid and cloud environments, with the ability to gain deeper and more accurate insights from that data. This demand is happening across the enterprise, requiring a data management system that is intuitive to employees across multiple functions and departments… We look forward to partnering with [Klaus] and his team to double down on product innovation and go-to-market to accelerate the big whitespace opportunities they see in almost every industry.
In the coming months, Ataccama plans to expand its workforce from 468 to over 500 employees.