Snowflake’s IPO didn’t only make history as the biggest, it also reignited our ambition to dream bigger.

Unless you’ve been hiding under a rock, you’ve probably read about Snowflake’s IPO last week. The cloud data platform was founded in 2012 and officially launched in 2014 after two years in stealth mode. Fast forward 6 years, and add $1.4bn in venture capital funding. Now the California-based startup just completed the biggest software IPO of all time.

We have worked with Snowflake as one of our cloud partners. We are platform agnostic as a business and also count other amazing players in the industry as our partners including Google, Amazon, Microsoft, and Oracle. Regardless of what solution our customers use to store or manage their data in the cloud, we will be there to support and help them optimize and orchestrate their data processes. 

But in spite of our impartiality when it comes to cloud platform preferences, it is impossible not to admire the impact that Snowflake’s historical growth is having on the entire tech world.

Snowflake’s startup fairytale must have, without a doubt, included it’s fair share of headaches and nightmares. Growing pains are something that every fast-expanding startup would relate to. New teams, new processes, rebrands, product pivots, new pricing, etc. It’s a never-ending journey which only intensifies when companies grow so fast. However, this vertiginous growth is also a reflection of their talents, ambition and performance. In a similar way in which the world witnessed in awe how Ussain Bolt became the fastest man on earth back in 2009, last week every startup founder witnessed in awe how an exceptional company completed the biggest IPO.

Rethinking growth and speed

The impact of Snowflake’s IPO on software companies, the cloud industry, and in particular SaaS startups is profound. Thousands of companies are looking to learn for Snowflake strategic masterstrokes and record-breaking growth. Just like when a sports record is smashed, Snowflake’s historic IPO gives companies a renewed sense of purpose, ambition and hope to attain the unattainable. Looking at their quarterly ARR (Annual Recurring Revenue) over the past 2 years is the simplest way to understand the hype which led to their share price doubling within 24 hours. Their consistently record-breaking growth rate has created a new benchmark of success in the industry.

 Courage to disrupt established industries

Snowflake has exceptional competition for incredible companies which include some of the world’s biggest organizations including Google, Amazon and Microsoft. Most founders wouldn't dare to try entering an industry led by such established and powerful titans. Their innovative approach and their cloud-native value proposition meant that they came with a fresh approach that focused on making the most of the cloud. In addition, being smaller means they had a level of flexibility and agility other players weren’t able to match.

The data management market is still poised for growth and there’s room for more success stories and unexpected plot twists. As outlined in the S-1, IDC places the addressable market for Analytics Data Management and Integration Platforms and Business Intelligence and Analytics Tools at $56 billion in 2020 and $84 billion in 2023.

Their tenacity and drive to take on such a complex industry, as well as their resilience to persist all the way to the IPO is admirable. I have no doubt that they would have had many opportunities to sell their company along the way, but clearly they have a much bigger plan and vision. 

Limitless vision and ambition

It can be easy for outsiders and media outlets to criticize. Was their initial IPO valuation too low? Are they just riding a wave in the wake of Covid lockdown which is forcing businesses to accelerate digitization of data? Can they sustain that growth rate which is typically stronger for tech companies in their early years?

Having worked with Snowflake teams for years, I can tell you that for me the IPO is a milestone that is testament to their achievements and vision. The consistent performance and professionalism of their teams is admirable. So is their vision and ambition - something that is contagious and inspiring. Some people felt the IPO was mispriced or misunderstood. I don’t know if that’s the case. From where I stand, I’m grateful to count the Snowflake team as wonderful business partners that relentlessly improves and shapes the way the world makes the most of data. In a way, this is a new chapter for them and I can’t wait to see what comes next.

https://www.wsj.com/articles/behind-snowflakes-debut-rising-data-demands-11600728414

https://www.forbes.com/sites/bethkindig/2020/09/11/snowflake-ipo-in-depth-analysis/#750e06777986