Distributed database startup MemSQL raises $50M in debt financing
SQL-based in-memory distributed database startup MemSQL Inc. said today it has raised $50 million via a debt facility to deliver new products and services to accelerate its growth. The debt financing was underwritten by Hercules Capital.
Founded in 2011, MemSQL offers what it calls a No-Limits Database designed to power modern applications with a cloud-native scalable architecture. The distributed relational database uses SQL to query massive amounts of data while also supporting both transaction processing and analytics on the same engine.
MemSQL says that eliminates the need for a time-consuming extract/transform/load procedures and enables users to analyze more recent data. A test in 2018 showed that it can scan more than a trillion rows of data per second on a cluster with 12 servers.
Offered in free and paid versions, the database can be deployed on public cloud platforms as well as on-premises in data centers and in hybrid environments. Helios, a hosted cloud database service launched by the company in 2019, is available on Amazon Web Services, Google Cloud and Microsoft Azure.
The ability to offer a database that scales has provided MemSQL a willing audience. The company says it has hundreds of enterprise customers, including many in the Fortune 500. Notable customers include Uber Technologies Inc., Dell EMC, Cisco Systems Inc., Samsung Electronics Co. Ltd., Akamai Technologies Inc., Pandora Inc., Intel Corp., Verizon Communications Inc. and Sony Corp.
“Our FY20 financial performance concluded with an impressive 70% growth in annual recurring revenue and with a single-digit cash burn, our current ARR vs. cash outlay ratio is less than one,” MemSQL Co-Chief Executive Officer Raj Verma said in a statement. “As we move forward, our charter remains the same.”
Including the new debt financing, MemSQL has raised $158.1 million to date. Previous investors include GV, Glynn Capital, Accel, Khosla Ventures, Caffeinated Capital, Data Collective and IA Ventures. The company’s last two venture capital rounds were $30 million in 2018 and $36 million in 2016.
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