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Big Data: VC's Current Favorite 'Investment Theme' is Big Data
Gartner forecasts that IT spending on Big Data will grow from $27 billion in 2012 to $55 billion in 2016. IDC, more conservatively, forecasts that Big Data spending will increase from $3.2 billion in 2010 to $16.9 billion in 2015.
David Hornik, a partner at Venture Capital firm August Capital, said that VC’s look for investment themes. And the “The best themes are the ones you can see everywhere, and big data is everywhere you turn.” To meet the demand, Venture Capitalists are out in force supplying funds to budding startups in the Big Data industry.
Just a few of the investments being made by venture capitalists in Big Data include the following:
- Splice Machine raised $4 million for creating a SQL engine for Big Data
- Bloomreach raised $25 million to fund new big data applications.
- RainStor got another $12 million for Big Data storage in the cloud, making total investment $23 million.
- Open Source BI player Pentaho recently received $23 million in funding to focus more specifically on Big Data Analytics
In all, according to Thomson Reuters, $2.47 billion was pumped into big data startups in 2011. In 2010, the VC investment in Big Data was $1.53 billion and in 2009, it was also $1.1 billion.
Not too unexpectedly the rate of innovation of Big Data products is picking up.
One example is IBM. IBM has recently announced their PureData platform, a system that attempts to speed up and optimize analysis of transactional and operational data, along with Big Data analytics.
Another example is Pentaho, who recently rolled out two new features in their 4.8 Pentaho Business Analytics product. Pentaho Instaview is designed to speed up the discovery and visualization of large data sets housed in Hadoop, MongoDB, Cassandra and HBase. Pentaho 4.8 also is also introducing an iPad app they’re calling ‘Mobile BI’ that allows interactive visualization from a tablet.
