How MongoDB raised $150M in warp speed to challenge IBM, Oracle, and SAP

October 5, 2013

News

How MongoDB raised $150M in warp speed to challenge IBM, Oracle, and SAP

How MongoDB raised $150M in warp speed to challenge IBM, Oracle, and SAP

MongoDB, the company that offers a database technology developers can use to easily enter and retrieve data for applications, raised its $150 million round of funding in just three weeks, according to its CEO, Max Schireson.

Most fundraising takes months. However, Schireson, in an interview with VentureBeat, said the money came together quickly because of the significant opportunity his company’s investors see in the $20 billion market for so-called “operational databases.”

“There’s been less evolution in this market,” he said of the operational database part of the database market where MongoDB plays, and which makes up about 70 percent of the total database market. “There’s greater need for change.”

VentureBeat reported earlier today on the funding, which values the company at a whopping $1.2 billion.

Operational databases are used by just about every company these days — at least by any company that offers or uses any application of some sort. These databases as the central place applications use to store and then retrieve information about anything, such as sales leads, media files, and personnel documents. Until recently, however, the operational database market has been relatively smug. For decades, companies like Oracle, IBM, and SAP have ruled the industry, offering a “relational” database technology that became standard.

But relational databases are rigidly defined, and their data must be filed in rows and columns. When a developer of a web app wants to make a change, it can take them an immense amount of work. So app developers began looking for databases that allowed changes to be made on the fly, with minimal hassle. That’s what MongoDB set out to offer when it launched in 2007.

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