With Big Data in its sights, venture capital firm Accel Partners has launched a $100 million fund to find the next hot companies that can make a hit in the red hot Big Data space.
NEW YORK-Big Data is getting paid.
That is a key message coming out of the
conference here. On Nov. 7 Cloudera
announced the receipt of a $40 million
round of venture capital funding, and the very next day at Hadoop World, Accel
Partners announced a $100 million fund to invest in Big Data companies.
At the show, Ping Li, a partner at
Accel, announced the Accel Big Data Fund
, calling it "incredibly
important given the explosion of Big Data." The new initiative's goal is
to fund transformative early stage and growth companies throughout the Big Data
ecosystem, from next-generation storage and data management platforms to a wide
range of revolutionary software applications and services-i.e., data analytics,
business intelligence, collaboration, mobile, vertical applications and many
more, Accel said.
Indeed, speaker after speaker at Hadoop
World spoke of the veritable "explosion" of data and that knowing how
to tap into it is key to both user organizations and companies that can help
with the transition to a world of Big Data support.
"If we're successful, we believe
there are many billion-dollar software companies that can be created over the
next few years," Li said. "This is a big market; it cuts across all
verticals. We believe a Big Data platform such as Hadoop is part of a big
Enterprises and IT departments are
dealing with unprecedented volume, variety and velocity of data and are looking
for new ways to efficiently store, manage and extract value for their
businesses, Accel officials said. Newly proliferating unstructured and
semi-structured data types are reshaping traditional data platforms and
technologies, leading to a radical shift in the relational database era and the
applications born from it. Accel's Big Data Fund will bring innovators and
entrepreneurs into this hot ecosystem of companies helping to address the
opportunities around Big Data with new technologies and through collaboration
with other industry leaders like Cloudera.
Accel has helped entrepreneurs build
more than 300 successful companies, including Actuate, AdMob, Atlassian, comScore,
Etsy, Facebook, Groupon and JBoss. And as an Accel-backed company, Cloudera's
success has helped bear out Accel's early interest in the Big Data space.
"It is amazing how this whole
space has taken off, but we predicted this when we got started," Mike Olson,
CEO of Cloudera, told eWEEK
. The Cloudera-sponsored
Hadoop World has grown in size every year, with more than 1,500 in attendance
this year. "We're already looking at bigger spaces for next year,"
"Big Data consistently drives
innovation across our existing portfolio companies today, and with the Big Data
Fund we are empowering a new set of entrepreneurs to be able to catch this
wave," Li said in a statement. "As Big Data platforms such as Hadoop
and others continue to gain rapid adoption and become more mainstream, we are
seeing an exciting wave of next-generation business applications emerge. These
new applications-whether they address business intelligence or mobile or
collaboration-will harness Big Data to deliver unique value and business
insight to enterprises and end users. Big Data is the future of IT, and we
believe Big Data will drive the next generation of multibillion-dollar software
companies. Vendors that effectively pave the way for Big Data to be leveraged
for ever-evolving business use cases, such as Cloudera-the leader in Apache
Hadoop-based software and services and an Accel-backed company-will determine
the winners in this next wave of cloud computing."
"Next-generation Big Data
technology innovation will be pervasive and cut across all layers of the Big Data
'stack'-from hardware components like SSDs, to data organization and management
solutions like Hadoop and NoSQL, to applications including analytics, business
intelligence and collaboration," said Benjamin S. Woo, program vice
president, storage systems and lead analyst, Big Data, at IDC. "Big Data
is creating a lasting revolution in data centers across all vertical markets,
paving the way for a new set of applications to be built on new Big Data
platforms rather than legacy relational databases."