Databricks closes in on $55 billion valuation after latest fundraise, source says

:Databricks is in talks to raise up to $8 billion from investors that would value the data analytics company at $55 billion, in one of the largest fundraises in Silicon Valley, according to a source familiar with the matter.
Most of the new funding would be in the form of a secondary share sale, where early investors and employees are allowed to cash out some of their stock holdings, the source said. It would also be used to cover the tax cost associated with the share sales, which could cost billions.
Such deals can boost employee morale, since stock-based payouts typically comprise a big chunk of the compensation at startups, while allowing the company to sidestep an initial public offering under a deadline before the stock unit expires.
Several high-flying startups are seeking to stay private for longer to avoid the regulatory burden and market volatility associated with being public. The flexibility via secondary sales also gives them more time to strengthen their finances.
Fintech giant Stripe is reportedly seeking a valuation of $70 billion in a similar deal, according to a report by Bloomberg News. Sam Altman’s OpenAI also raised $6.6 billion at a valuation of $157 billion last month.
Major venture capital investors Thrive Capital and DST Global are participating in the fundraising by Databricks, two sources said.
Databricks did not immediately respond to a Reuters request for comment. Its latest move was reported by CNBC earlier on Tuesday.
The company had notched up a valuation of $43 billion after a $500 million funding round last year.
Its global revenue jumped to $1.6 billion in the fiscal year ended Jan. 31, more than 50 per cent higher than the year before.