Predictive analytics and data-blending specialist Alteryx raises $60M

Alteryx, an Irvine, California–based startup that specializes in helping companies mix together data from multiple sources and then run predictive analyses on it, has raised a $60 million series B round of venture capital. Insight Venture Partners led the round, which also included existing investors SAP Ventures and Toba Capital. Alteryx raised a $12 million first round in May 2013.

Generally speaking, the company’s product is like a mix of [company]Tableau[/company], [company]SAS[/company] and [company]Informatica[/company], in that it helps analysts prepare data and build predictive models using a single, visual interface. [company]Alteryx[/company] president and COO George Mathew said the company is trying to ride the self-service wave that is overtaking the business intelligence world thanks to Tableau and Qlik, and also the in-memory processing wave that’s gaining popularity from infrastructure technologies like Spark right up to analytics applications.

“The big trend here is that you couple in-memory with a highly usable experience, and there’s a big shift in how people are taking advantage of [the tools] available today,” he said.

A screenshot of the Alteryx Designer software. Source: Alteryx

A screenshot of the Alteryx Designer software. Source: Alteryx

Sixty million dollars is a pretty large round, but Mathew thinks it’s necessary for the European expansion Alteryx is planning, as well as an “enormous amount of R&D.” One of its big efforts right now is working with [company]Cloudera[/company] and [company]Databricks[/company] to improve Spark R and push more of the computing on predictive workloads down into Hadoop and Spark.

The Alteryx approach has apparently been a hit. Mathew said the company has more than 600 paying customers and saw 200 percent customer growth in the last year. Part of that was the result of a major pricing shift, which cut entry-level prices by up to 90 percent in order to speed the purchase and deployment processes, and also make customers feel more comfortable adding more users or upgrading to the server version of the software.

“We’re literally acquiring over 100 customers a quarter now,” Mathew added.