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Boston data firm nearly triples valuation after raising $250 million

The deal sets the stage for Starburst to go public in the next few years.

Starburst's leadership team pictured here. From left to right, starting in the back row: Co-founder Matt Fuller, Toni Adams, David Freeman, Ken Pickering, Javier Molina, Jess Iandiorio, cofounder and chief executive Justin Borgman, and Niall Fitzpatrick.Starburst

Starburst Data, a Boston maker of data analysis software, said Wednesday it has raised hundreds of millions in new cash in a deal that makes it one of the most highly valued private technology firms in Massachusetts.

The company’s new valuation of $3.35 billion is nearly triple the $1.2 billion it was valued at in January 2021. This comes after Starburst raised $250 million in funding this week, bringing total investment into the firm to $414 million. The latest deal was led by Alkeon Capital, a New York venture capital firm, and included notable investors such as Andreessen Horowitz.

Justin Borgman, the company’s chief executive officer, said the influx of cash will allow Starburst to double its 350-person headcount and expand its operations into the Asia-Pacific region. It also sets the stage for the company to go public in the future.

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“We do think that an IPO is two to three years out,” he said in an interview. “We think this could be the last financing that we do. It certainly puts plenty of cash in the bank to last us a long time.”

Starburst, which was founded in late 2017, makes software that customers use to analyze data from a wide range of different sources. It’s used by companies across the globe, including Zillow and Standard Chartered.

With the new funding round — which makes it the ninth-highest valued private tech firm headquartered in the state, Globe data from PitchBook shows — Starburst wants to ramp up sales of its Galaxy product, which is a software-as-a-service version of its data analysis solution.

Borgman believes the Galaxy product, which is attractive for “digital native” companies like DoorDash and GrubHub, will become a larger share of the company’s revenue as it charts a path towards going public.

Borgman said Starburst will likely choose a “traditional” path to go public rather than a special purpose acquisition company, adding that he hasn’t “done too much research” on the alternative route.

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As it ramps up its staff, the company plans to remain in its offices at 320 Summer St., which it shares with GoTo, formerly known as LogMeIn.