With the economy going through a rough patch and venture capital tightening, it’s not often you hear about a 1-year-old startup securing $62.9 million from some of the most well-known investors in the world. But that’s exactly what happened with Cybersyn.
Cybersyn, a data startup founded in 2022 by Alex Izydorczyk, recently announced that it raised $62.9 million from Snowflake Inc., Coatue Management and Sequoia Capital.
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What Is Cybersyn?
In one sentence, Cybersyn is best described as a company that sells proprietary economic datasets to investors, government agencies and corporate clients.
Cybersyn plans to use the funding to expand its small team — it has eight employees — and acquire additional proprietary data for expanded growth.
In an interview with Reuters, Izydorczyk touched on the future of the company.
“We're not trying to just be a data broker,” he said. “We're trying to actually add value to the data we acquire and combine it.”
What Is Snowflake?
Snowflake Inc. is a publicly traded company and provider of cloud-based data warehousing solutions. It provides services such as data warehouse modernization, data exchange and engineering and data science.
The Snowflake Marketplace offers a way for people to buy and use external data sets alongside their own business data. This can be done by choosing from over 1,800 data set options available on the platform.
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Christian Kleinerman, senior vice president of product at Snowflake added the following:
"Cybersyn is a company that was built for this era of data sharing and moving with agility. We think of the marketplace as a core part of our offering. If someone is willing to be strategically aligned with us, we're happy to invest.”
To date, Cybersyn has released both free and paid data sets on the Snowflake Marketplace. These data sets have potential buyers across various industries ranging from consumer goods to pharmaceuticals.
Trillion Dollar Data Market
Data has been described as ‘digital gold.’ Some of the largest brands in the world like Apple Inc., Meta Platforms Inc. and Amazon.com, Inc. all make much of their billions in the trillion dollar data market. Amazon’s cloud storage does billions in revenue per year supporting some of the largest companies in the world, and Meta has an advertising empire at their fingertips. This is likely why these startups are securing tens of millions despite being relatively new companies.
Even retail investors are funding innovative startups in this space. For example, AtomBeam is currently raising on StartEngine, which means anyone can invest for a limited time. The startup has already raised over $1.3 million from retail investors in it’s current raise for it’s data compaction platform that allows it to compact data by up to 75%.
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