(Reuters) – Databricks, the data analytics firm that has long been the subject of IPO speculation, is close to raising $800 million through deals that could value it at $55 billion, according to a person familiar with the matter.
Most of the new money will be in the form of a secondary sale, where early investors and employees are allowed to withdraw some of their money, the source said.
Such agreements can increase employee morale, as stock payments often comprise a large portion of initial compensation, while allowing the company to avoid an initial public offering.
Many high-flying startups are looking to stay private for a long time to avoid the regulatory burden and market volatility associated with going public. The flexibility through secondary sales also gives them more time to consolidate their funds.
Major venture capital investors Thrive Capital and DST Global are participating in the funding round with Databricks, two sources said.
Databricks did not immediately respond to Reuters’ request for comment. The potential fundraiser was previously reported by CNBC.
The company had earned $43 billion after earning $500 million last year.
(Reporting by Krystal Hu in New York and Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)