It is not easy for organizations to become data-driven, despite the aspirations many have to get there. Even organizations with data analysis teams often struggle to make effective use of their data. According to According to a recent Gartner survey, less than half of data and analytics leaders say their teams are effective in delivering value to their organizations.
German computer scientist Michael Berthold became aware of the problem when he was a professor at the University of Konstanz, where he consulted for several companies trying to adopt data analysis practices. These companies often expressed a desire for a platform that could help process and analyze their data, Berthold told TechCrunch — and so he and several colleagues decided to build one.
“The initial objective was to create a modular, highly scalable and open data processing platform that allows the easy integration of different modules for loading, processing, transforming, analyzing and visually exploring data, without focusing on any specific application area,” Berthold said. “The software is designed to be professional-grade and also serve as an integration platform for various other data analysis projects.”
The resulting open source platform, called KNIMEit eventually morphed into a VC-backed startup of the same name, and the aforementioned colleagues (Bernd Wiswedel and Thomas Gabriel) joined Berthold on the founding team.
Today, the KNIME company has 400 customers paying for the fully managed version of its platform, including Audi, AMD, Lilly, Novartis, Bayer, Sanofi, Genentech, FDA, P&G and Mercedes-Benz. Annual recurring revenue has been increasing 30-40% per year since KNIME’s founding in 2008, according to Berthold, and now stands at around 30 million euros (~32.35 million dollars).
KNIME software is based on codeless, visual workflows designed to integrate with an organization’s systems of record. Users can utilize KNIME to build pipelines to transform data, transform data into reports and visualizations, or compare one set of data to another, regardless of where the data resides.
Through the KNIME business center, companies can run, automate, and deploy data workflows with optional governance and security features. The hub is also where they can create internal libraries of workflows so that teams can share and edit workflows as needed, or install workflows created by the broader KNIME community.
KNIME charges good money for its services – annual licenses start at $39,900 for the business center. But customers seem willing to pay for them, which has caught the attention of investors.
This week, KNIME announced that Invus has invested $30 million in its business to bring KNIME’s total raised to $50 million. The resources will go toward product development, expanding KNIME’s team from 250 people today to 275 by the end of the year, and customer acquisition efforts in the U.S., Europe, the Middle East and Africa, Berthold said.
Asked how KNIME plans to stay competitive against data analytics rivals like Dataiku, Alteryx, IBM and SAS, Berthold pointed to features like KNIME’s recently launched AI assistant, which helps users launch or add advanced functionality to data projects. existing. KNIME also plans to grow its portfolio of software-as-a-service offerings, Berthold said, targeting small and medium-sized businesses with pay-as-you-go tiers.
“KNIME was close to profitability in 2024, but with the additional investment, we chose to invest more and grow in the coming years,” said Berthold. “We have seen a slowdown in technology, primarily resulting in longer sales cycles and more difficult negotiations. In some cases, budgets have been put on hold, but adoption of the open source analytics platform has continued, positioning KNIME well for the future.”
