Big data start-up Cloudera has raised $900 million in a private share sale, making it the largest US tech fundraising effort since Twitter's IPO in November 2013.
The level of finance for the firm is yet another indication of the clamour for investors and leading IT companies to build a new generation of technology platforms capable of managing the vast quantities of data available in the modern business landscape.
The round of fundraising has valued the six-year-old company at $4.1 billion, providing further indication of the rising value of tech start-ups.
According to reports, much of the money came from Intel, which means the technology firm now has an 18 per cent stake in the data company. It is unclear exactly how much of the $900 million investment came from Intel, but it is the only company confirmed to have contributed.
Tom Reilly, Cloudera’s chief executive, said the company would use the investment to increase its activities overseas and begin to build on the relationships it has developed with other technology companies as it looks to boost its sales.
Cloudera makes use of Hadoop, which was developed by Yahoo to handle huge volumes of information collected online.
Hadoop was released as an open-source project and has attracted a high level of interest from IT managers, thanks to its suitability for storing and managing vast amounts of information, which makes it ideal to contribute to the big data wave hitting a range of companies in the financial services sector and other industries.
Mike Gualtieri, a principal analyst at Forrester Research, told the Financial Times that the open-source nature of Hadoop will make it difficult for a software company to charge a premium for its product.
This has been indicated by the fact a number of firms are looking to make use of the software within their own tech start-ups. Hortonworks and MapR are also attempting to grab a portion of the market, while IBM and Pivotal, a company partly owned by EMC and General Electric, have launched their own versions of the technology.