(Bloomberg) — Thrive Capital is in talks to buy about $1 billion in analytics software maker Databricks Inc., in a deal valued at about $55 billion, according to people familiar with the matter. .
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Thrive will lead a sale of the company's stock, also known as a tender offer, said the people, who requested anonymity to discuss their identities. A tender offer is a type of transaction in which some early investors or employees can sell stock to new investors.
Representatives for Thrive and Databricks declined to comment. The Information previously reported some details of the tender offer.
The deal marks Thrive's latest major stake in a major Silicon Valley startup. The VC firm founded by Joshua Kushner led the OpenAI tender offer that closed earlier this year and is also a significant investor in payments platform Stripe Inc.
Databricks' $55 billion valuation is up from its $43 billion valuation last year, when the company raised $500 million. Snowflake's competitors, which develop software and use artificial intelligence to help companies organize and analyze large amounts of information, have been able to raise large sums of money in the private markets and are unable to launch initial public offerings. They also have the option of postponing it.
Databricks has raised more than $4 billion in total funding, according to data provider PitchBook. Existing investors include Andreessen Horowitz, Battery Ventures, and New Enterprise Associates.
Snowflake, which went public in 2020, initially received tremendous enthusiasm from investors and its stock price soared. But the company is now trading at just over a third of its market peak three years ago, with a market capitalization of about $44 billion. The two companies are in a fierce rivalry.
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