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DataRobot raises $270m, looks toward IPO

The Boston maker of artificial intelligence products pegs its worth at #2.7b

DataRobot, the Boston maker of artificial intelligence products that help manage and analyze business data, said Tuesday that it has raised $270 million in new venture investment as it considers a public offering of stock.

The company said it is worth $2.7 billion after the latest investment round, which is more than double its value last time it raised money.

The funding is another sign that Boston’s larger tech startups are continuing to see healthy investor interest. Klaviyo, which makes marketing software for online businesses, said Monday that it had raised $200 million in new funding. That company says it is now valued at more than $4 billion.

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DataRobot intends to use its new money “to accelerate our rapid growth globally,” said Dan Wright, president and chief operating officer.

“Modern enterprises are generating and capturing more data than ever before, and this data is also changing more rapidly than ever,” Wright said in a statement. “Traditional business intelligence and manual machine learning methods are completely inadequate to keep pace. Businesses need AI-driven insights into what will happen, rather than simply what has happened, in order to win in today’s increasingly competitive market.”

The company, which cut ties with an undisclosed number of its workers as the COVID-19 pandemic took hold, said it now employs 1,100 people around the world. About 200 of them are in Boston.

DataRobot described its latest funding round as “pre-IPO,” indicating that it has its eye on hitting the public markets soon. It did not say when it plans to move toward a stock market listing.

“The company’s main objective is to build an iconic company and empower organizations and industries to transform with AI,” DataRobot said. “While an IPO is likely in our future, our focus remains on helping our customers experience optimal value from AI.”

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DataRobot has raised a total of $700.6 million since it was founded in 2012. Investors in the latest funding round include T. Rowe Price, funds managed by BlackRock, Tiger Global, Silver Lake Waterman, B Capital Group, Glynn Capital, ClearBridge, NEA, and Sapphire Ventures.

Klaviyo, which has raised a total of $358.5 million since it was founded, also in 2012, said it plans to use its latest cash infusion, in part, to build its workforce. The latest round was led by Accel, with participation from Summit Partners, an existing investor.

The company now has 500 employees, with more than 300 in Massachusetts. Klaviyo said it will double its staff to 1,000 by the end of next year. Those jobs are expected to be mostly engineering roles based in Boston.





Andy Rosen can be reached at andrew.rosen@globe.com. Follow him on Twitter @andyrosen.