DataRobot raises $206 million
Boston-based enterprise machine learning platform DataRobot announced a $206 million Series E investment round led by Sapphire Ventures; bringing its total funding to $431 million.
Established in 2012, DataRobot sells software for companies to develop and deploy in-house AI models across several industries, including: finance, insurance, healthcare, marketing and even sports.
In insurance, for example, a large European insurer incorporated the risk of “churn” into its renewal pricing, leading to reductions in cancellations and non-renewals, an improved loss ratio, and a 24% reduction in variable costs. In all, the company estimates the value at €12.5 million a year.
Another insurer – “a large European property and casualty insurer” – implemented overnight batch runs of auto claims against a model developed by using DataRobot. Claims scoring high for probability of fraud are now assigned to a specialized claims fraud investigation team. The company estimates that it has increased the accuracy of its fraud detection by 30%, yielding more than $10 million in value.
Finally, DataRobot also announced DataRobot MLOps, a new solution for deploying, monitoring, and managing machine learning models across the enterprise.
“AI is fundamentally changing the way the world works, and DataRobot is delivering on its promise to make all enterprises AI-enabled to drive innovation and value. We’re pleased to expand our stake in DataRobot as they rapidly scale and expand the capabilities of their platform through R&D and strategic acquisitions. We look forward to continuing to help build one of the world’s fastest growing AI companies.” – Jai Das, President & Managing Director, Sapphire Ventures.