On 1st November 2018, a company that began as a startup in Malmo announced that it has received an enormous investment of $80 million.
Neo4j, formerly Neo Technology, broke into the tech market when Founder and CEO Emil Eifrem developed the first graph database back in 2000. In 2011, after more than ten years of development, the company began to market and sell the graph databases. Those ten years building the product have been credited with the subsequent quick growth of the company.
Graph databases are used to organise data into a visual representation of different variables. It enables an analyst to see how data relates to other data. This makes things easier to visualise, and helps increase accuracy in predicting consumer behaviour.
They set up their global headquarters in San Mateo, California, while keeping an office in Malmö. Eifrem is a supporter of tech startups moving to Silicon Valley, and has in the past likened it to “running downhill versus running uphill”.
What he means by that, is that the same amount of work can get you further in the environment of Silicon Valley than it might get you elsewhere. Today, the Neo4j is the leading graph database in the world.
Dominating the market
Over the past 10 years, Neo4j has accumulated a total investment of $160.1 million. This is the largest collective investment that has ever been made into a graph database company.
They have a huge network of partners and the largest share of the market. Customers include giants such as Volvo, Walmart, eBay, and NASA. Neo4j is used by more than 75% of the companies on the Fortune 100 list.
Further technological development
Neo4j plan to use the investment capital to further develop the main product, which is a graph platform that can support applications such as artificial intelligence (AI) and machine learning.
Introducing support for machine learning, and developing that technology using graph databases could take the existing AI technology and improve it, as the AI will be able to analyse broader sets of interconnected data, and see in more detail how things relate to each other. This could lead to higher levels of accuracy and better decision making from AI entities.
The investment round was led by Morgan Stanley and One Peak Partners. Among the investors are Creandum, Eight Roads and Greenbridge Partners.
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