Large global enterprises in every industry are increasingly migrating data to the cloud for analysis, to generate better insights and make more informed decisions. Global data volumes are expected to grow at 24% CAGR over the next five years, and data workloads in the cloud are expected to grow nearly 65% by 2023. Meanwhile, the cloud data platform Snowflake grew 100% year-over-year in the quarter ending July 31, demonstrating customers’ appetite to analyze their data in the cloud.
These initiatives are often hampered by siloed legacy systems that cross-communicate poorly if at all, however. To analyze data, enterprises must extract it from different systems and render it into a form that can be analyzed―which is more difficult when legacy “extract, transform, and load” (ETL) procedures are not built to work in the cloud. Non-cloud-native ETL processes increase the burden on data teams to prepare and transform the data for analysis, and that lag time prevents businesses from being truly data-driven.
Vendors recognize this challenge. A report by Grandview Research found that the global data preparation tools market was valued at $3 billion in 2020 and is expected to grow by 18.6% annually through 2028. Numerous startups have been taking market share from giants such as IBM, SAP, Oracle, and Microsoft, but they generally require clients to share confidential data with them―a non-starter for large, security-minded companies such as large banks.
An exciting exception is Matillion. Co-founded in 2011 by CEO Matthew Scullion—who worked in commercial IT and software development for 15 years at several British and European systems integrators—and CTO Ed Thompson, a former IBM software consultant, Matillion is a data integration and transformation platform built for the cloud. It extracts data from on-premises and cloud applications, transforms it, and loads it into cloud data warehouses, lakes, and lakehouses including Snowflake, Amazon Redshift, Google BigQuery, Microsoft Azure’s Synapse, and Databricks. These analytics platforms then help businesses achieve meaningful insights.
Several features distinguish Matillion from competitors:
Matillion has more than 1,000 customers, including Western Union, Cisco, Slack, Subway, and Siemens. The company tripled its annual recurring revenue (ARR) from 2019 to 2021, and forecasts that it will triple its ARR again by 2023. Investors seem persuaded: Matillion has raised $310 million from General Atlantic, Lightspeed, Battery Ventures, Sapphire Ventures, and other top-tier firms.
Citi Ventures is proud to announce that we are investing in Matillion as part of its recent $150 million fundraising round. We look forward to a productive relationship with Matt, Ed, and the rest of the Matillion team.