• Data analytics platform Dremio and cybersecurity threat detector Hunters picked for cash injection.
  • DT venturing vehicle makes inaugural investment in the two startups, adding to data-oriented interests.

DTCP kickstarts 2022 with data security investments

DTCP kickstarts 2022 with data security investments

Source: Martin Jaroš / Unsplash

Deutsche Telekom Capital Partners invested in two startups to begin its years’ activity, participating in funding rounds for California-based Dremio and US–Israeli startup Hunters.

Each has a focus on data management. Dremio provides an open data architecture to ingest and analyse data, while Hunters scours data lakes for cyber threats through its security operations centre (SOC) solution.

Dremio-land

DTCP was a new investor in data lake transformation specialist Dremio as part of its Series-E round. It raised $160m (£119m/€143m), taking its valuation over the $2bn mark.

Dremio said the funds will be used to “accelerate” its technology development and “invest heavily” in educating a “community of data lake practitioners”.

In a joint statement, DTCP’s Growth Equity Managing Director Aurin Bhattacharjee and Partner Guy Horowitz said that DTCP invested in Dremio for its “pioneering, comprehensive solution”. The pair added that DTCP expects Dremio’s addressable market, focused on open data architectures, to grow to $17bn by 2026.

Dremio provides an SQL engine in the midpoint between data storage and end-users, and offers analytics and query outputs. It counts KKR and Nutanix among its customers, and has strategic partnerships with Amazon, Microsoft, and Tableau.

The round was led by Adams Street Partners with participation from Cisco Investments, Insight Partners, Lightspeed Venture Partners, Norwest Venture Partners, Sapphire Ventures, and StepStone Group.

Hunters on target

SOC platform provider Hunters raised $68m in its Series-C funding, with DTCP participating for the first time.

Hunters’ SOC platform aims to replace traditional security information and event management (SIEM) software, ingesting data from across a company’s security sources to identify and prevent cyber-attacks.

Uri May, Chief Executive and co-founder of Hunters, estimates the SIEM market to be worth $4.3bn and “ripe for disruption”, which Hunters aims to do by providing combined data ingestion and threat detection services.

Hunters will leverage the latest funding tranche to “strengthen sales and partnerships” in North America and Europe, the Middle East, and Africa. It will also continue to grow its team, which it claims doubled in size in 2021.

Hunters’ latest round was led by Stripes, with engagement from Bessemer Venture Partners, Blumberg Capital, YL Ventures, Microsoft’s venture fund M12, and U.S. Venture Partners. Databricks, Cisco Investments, and Snowflake Ventures were named “strategic investors”, alongside Okta, which invested in Hunters’ previous funding round in mid-2021.

It has raised a total of $118m since its seed round in 2019. It has not made public its valuation.

DTCP finds another unicorn

DTCP added another unicorn to its portfolio through its investment in Dremio, which surpassed the required $1bn valuation to earn the moniker. DTCP’s stable is already well-populated with unicorns, a handful of which were engaged with in the past year.

  • Cloud-based voice platform provider Aircall announced a $120m funding round in mid-2021 which pushed it over a $1bn valuation. DTCP participated for the second time, having lodged its first investment in 2020 (Deutsche Telekomwatch, #94 and #106).
  • AppsFlyer, an Israel-founded mobile attribution platform provider, tipped over the $2bn mark in late-2020. DTCP first invested in 2017 before upping its stake in 2020 (Deutsche Telekomwatch, #60, #91, and #100).
  • DTCP upped its investment in security operations specialist Arctic Wolf in mid-2021, taking its valuation to $4.3bn. The venturing vehicle first invested in Arctic Wolf in 2020 (Deutsche Telekomwatch, #100).
  • Data analytics platform provider Heap is set to join the crowd soon, with its $960m valuation giving it a self-anointed “emerging unicorn status”. DTCP participated in its December 2021 $110m Series-D, adding to its initial 2019 investment (Deutsche Telekomwatch, #86 and #110).
  • Customer engagement platform player Iterable raised its valuation to $2bn after a DTCP-backed Series-E­ round in 2021 (Deutsche Telekomwatch, #105).
  • Neo4j raised $325m in its mid-2021 Series-F, taking its valuation above $2bn. DTCP participated with its inaugural investment in the managed cloud service provider (Deutsche Telekomwatch, #106).