Investment Trends in the Analytics sector

Insights into the investment market as a whole are still difficult to deduce, even for investment banks. We want to share our view of trends in the market with you.

Over the past three years, we gathered data on investments in the BI and Data Management industry from 2012 up to this day. For our trend analysis, a sample of 228 data sets was drawn for the years 2014 to 2016 and an additional 32 data sets for the YTD 2017. The data sets were then categorized as more BI or Data Management related. These categories were then specified further in a second step.The BI category was subdivided into the fields BI (in the narrow sense), Advanced Analytics, CPM and Big Data Analytics. On the other hand, the category Data Management was subdivided into NoSQL, Hadoop, Data Integration, Data Management (in the narrow sense) and Analytical Data Bases. The results of the analysis are plotted in the chart below.

The analysis of the investments in the analytics sector that are open to the public shows:  We cannot estimate concrete investment sums of the past years. What we observed during our analysis was that information on investments in many cases is either not published at all or with a long delay. Information on investments from 2016, 2015 and even 2014 reaches publicity nowadays. That leads us to the conclusion that the database of the analysis is not completed for the years 2015 and 2016.

We also cleared up the sample by three investments which had disproportionately high transaction volumes: Investments in Domo with an accumulated volume of 556 Mio. USD, investments in Cloudera with a sum of 900 Mio. USD and the investments in Palantir with a transaction volume of over 1,378 Mio. USD.

However, what we can state – based on the adjusted volumes – is that the investment market experienced a shift in the partition of the invested sums: The proportion of investments in Data Management sector in relation to the BI sector decreased. This can be traced back to decline of investments in the fields of Hadoop and NoSQL, whereas accumulated transactions volumes in Advanced Analytics and BI (in the narrow sense) rose.

Besides matchmaking between possible investors and shareholders, we as Data Invest also set ourselves the goal to repeal the depicted intransparency of the investment market. Become part of our community and benefit from our mutual endeavor.