From Siloed to Contextualized Operational Data – How Cognite is Driving the Digital Transformation of the World’s Largest and Most Vital Industries

Everyone talks about the transformative power of big data, often in relation to consumer insights. Yet there is a river of information flowing just as powerfully out of industrial facilities around the world – information that could be harnessed to make our planet more sustainable, industries more efficient, and jobs safer.

Industrial companies are waking up to the power of that information, and today we’re excited to announce an investment in Cognite, a global industrial Software-as-a-Service (SaaS) leader, whose mission is to digitalize heavy-asset industries and unlock the power of their operational data.

The Industrial Leaders’ Choice

Founded in Norway in 2017 by Dr. John Markus Lervik, Geir Engdahl, and Stein Danielsen, Cognite has made huge headway in transforming the use of data across oil and gas, power and utilities, renewable energy and manufacturing, using its cloud-based Cognite Data Fusion (CDF) platform. Companies like bp, Saudi Aramco, Alfa Laval, Statnett, and Mitsubishi are already optimizing the way they operate using Cognite’s platform.

In Good Company

Cognite is an exciting addition to TCV’s portfolio and fits squarely with our thesis on the next-gen industrial software space. This dates back to our support for Seismic-Micro Technology (SMT) from 2007, which gave us early insight into how oil and gas companies value operational intelligence – and its importance from a regulatory and operational efficiency perspective.

This investment led to us finding and backing OSIsoft in 2011, which has since become a standard in the Industrial Internet of Things (IIoT) market due to its ability to pull data from sensors and industrial equipment at scale for the world’s largest industrial companies.

Another investment is IQMS, one of the first manufacturing software vendors to natively connect manufacturing execution systems to the ERP software of their suppliers/smaller manufacturers, so they could harness the power of the factory data to hone business decisions.

Across these investments we have seen big data and data-driven decision-making soar and drive a huge opportunity for innovation and investment.

Bridging the Gap Between Business and Operational Data Insights

Digital-first companies inherently operate in a data driven way. They produce a sea of business performance data via their IT systems and are able to collect, analyze and manage that data to plan more strategically and run more efficiently. The opportunity in the industrial space is to extend these benefits, harnessing the oceans of operational technology (OT) data generated by every asset and piece of equipment making up factories, processing plants, or broader industrial estates. To date, turning this data into business value has proved a challenge – not least because OT covers a diverse range of data sources and formats.

The sensors on a single piece of equipment may hold the key to insights about production quantities, efficiency data, motor speeds and heat readings. The challenge is how to combine all those different data points into the right context to assess and improve equipment performance. This is a problem that, until recently, no one had solved – and, frankly, few companies even understood.

A Meeting of Minds and the Missing Contextualization Layer

In 2018, not long after Cognite’s founding, Øyvind Eriksen, President & CEO of Aker, and Kjell Inge Røkke, the majority owner of Aker, came to visit our California offices along with Cognite’s CEO, John Markus – to discuss what they were building at Cognite.

It was clear to us from that first meeting that Aker’s support and industrial expertise, combined with John Markus’ product brilliance, addressed the need for this missing contextualization layer – and that Cognite’s product strategy would be aimed at solving this critical issue. That initial meeting led to a relationship which has culminated in TCV’s investment today.

Cognite uses the latest technology – in particular machine learning – to enable large amounts of information to be ingested in real time and, crucially, contextualized so it can be leveraged for a wide range of use cases. This approach, which improves data’s accessibility and governance across an entire organization, significantly shortens the time to value and scalability of high-ROI applications including predictive maintenance, production optimization, and remote work.   

Fueling Cognite’s Next Growth Chapter

Cognite is the perfect fit for TCV’s strategy of investing early in potential franchise companies of the future. We are thrilled to be part of their next growth chapter and help them scale and catalyze the full-scale digital transformation of heavy-asset industries.

The company joins Brex, Redis Labs, Revolut, Relex, Klarna, Mambu, Mollie and recent investments in Europe and around the world. Like OSIsoft, IQMS, Genesys, Netflix, Spotify and many other global leaders in our portfolio that were once young growth-stage companies, Cognite is forging ahead in a fragmented field to become the category leader.

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The views and opinions expressed are those of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the author and disclaims any responsibility therefor. This blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Redis Labs Raises $100 Million from Bain Capital Ventures and TCV to Help Companies Win in the Data-Driven Economy

Mountain View, August 25, 2020—Redis Labs, the company behind Redis, the most popular open source database and the provider of Redis Enterprise, today announced it has closed $100 million in Series F financing at a company valuation of more than $1 billion. This investment was co-led by Bain Capital Ventures and TCV, with participation by the company’s existing investors Francisco PartnersGoldman Sachs GrowthViola Ventures, and Dell Technologies Capital. With this funding, Redis Labs has now raised over $246 million to-date. 

More than ever, enterprise data is distributed, siloed, and increasing in volume. In order for companies of every industry to maximize and leverage the power of this data, Redis Labs is delivering a real-time data platform that allows them to manage, process, analyze, and make predictions, that will improve their customer experiences and drive their business forward.

“This investment will enable us to meet the surge in demand from companies representing every market and geography, to scale their Redis deployments and to help them win in the data-driven economy,” said Ofer Bengal, Co-Founder and CEO at Redis Labs. “The unprecedented conditions brought on by COVID-19 have accelerated business investments in building applications that require real-time, intelligent data processing in the cloud. During this time, Redis has become even more critical to our customers, partners, and community. We will continue to invest in strengthening our community footprint, advancing the Redis technology, and helping our users to do more with Redis.”

“Redis has become the ideal database for companies to operate intelligently and win in the current economy,” said Enrique Salem, Partner at Bain Capital Ventures. “We’ve long believed in the market opportunity for a high-performance database in the cloud-era and Redis’ potential to lead this category. Since our initial Series A investment, the Redis team has done a remarkable job making Redis an essential tool for developers and being a trusted partner for global enterprises operating at scale. We’re thrilled to continue partnering to build a multi-billion dollar database company.”

“We, at TCV, are delighted to partner with Ofer, Yiftach, and the team at Redis Labs in their effort to revolutionize the high-performance database industry,” said Gopi Vaddi, General Partner at TCV. “The product leadership demonstrated by Redis Enterprise in low latency, distributed, and high availability use cases is particularly remarkable. We believe that applications demanding Redis Enterprise’s market-leading capabilities will continue to multiply in an increasingly real-time world.”

Redis Labs currently has more than 7,500 customers, including MasterCard, Dell, Fiserv, Home Depot, Microsoft, Costco, Gap, and Groupon. With this funding, Redis Labs will continue to grow the global Redis community, expand its go-to-market team and programs, and invest in the product and support services to deliver even more value for customers. In calendar 2020 Redis Labs has seen tremendous momentum to-date, including:

  • Signed a strategic alliance agreement with Microsoft Azure for making Redis Enterprise the top tier of Azure Cache for Redis, and launched it in Private Preview. Public Preview is expected in early fall.
  • Following the availability of Redis Enterprise Cloud as a native service on Google Cloud in October 2019, the service has experienced over 300% growth in just two quarters.
  • Achieved Advanced Technology Partner status with Amazon Web Services Partner Network.
  • Launched RedisAI, for inferencing artificial intelligence requests at the speed of Redis, and RedisGears, a programmable engine enabling data-processing options at milliseconds speed across any distributed Redis deployment.
  • Announced RedisRaft, which brings strong consistency to Redis, making it suitable to serve the most critical business applications on earth.  
  • Named “Most Loved Database” for a fourth consecutive year in Stack Overflow’s annual global developer survey.

About Redis Labs

Data is the lifeline of every business, and Redis Labs helps organizations reimagine how quickly they can process, analyze, make predictions with, and take action on the data they generate. As the home of Redis, the most popular open source database, we provide a competitive edge to global businesses with Redis Enterprise, which delivers superior performance, unmatched reliability, and the best total cost of ownership. Redis Enterprise allows teams to build performance, scalability, security, and growth into their applications. Designed for the cloud-native world, Redis Enterprise uniquely unifies data across hybrid, multi-cloud, and global applications, to maximize your business potential.

Learn how Redis Labs can give you this edge at redislabs.com.

Media Contact
Steve Naventi
Redis Labs
press@redislabs.com

Katja Gagen
TCV
kgagen@tcv.com


At the Cutting Edge of the Governance Risk and Compliance (GRC) Sector – Leveraging Compliance Data to Drive Business Value

By Nari Ansari and Gal Peleg

Compliance seems to divide enterprises into three categories: those that primarily publicize it as proof of “good governance,” those that actually push the boundaries far enough to bring consequences, and everyone else with their heads down, trying to address whatever regulatory standards govern their industry and the seemingly ever-changing nature of those standards.

Now a fourth group is emerging, charting their own course. These enterprises are turning compliance to their advantage by mining compliance data for digital gold: insights that increase efficiency and competitive advantage. Like the governance crowd, they have automated many compliance functions with emerging software solutions. They are looking at the resulting data with fresh eyes and using it to improve their businesses.

More Regulation…

Most people think of compliance in terms of rules and regulations imposed by lawmakers and other governing bodies, for good reason: there is a proliferation not just of new regulations but of whole new regulatory frameworks such as Dodd-Frank and GDPR. Even long-time frameworks such as SOX, HIPAA, and FCPA continue to evolve. Yet at the same time, many enterprises are setting rules of their own to address an increasingly complex environment that includes global supply chains, cybercrime, trade wars, Brexit, and other evolving risks.

In the end, it doesn’t matter where the rules come from: compliance, and the documentation that comes along with it, is essential for managing risks and maintaining brand reputation. The roster of damaged brands from just the past few years illustrates what can happen when risk and compliance management break down.

Until recently, enterprises managed compliance risks with home-grown, often siloed and disparate initiatives that focused on people and processes. The components included manual record-keeping, time-consuming audits, constant training, ever-lengthier supplier questionnaires, C-level compliance positions, and board-level reporting. The reams of information gathered and presented were considered useful mainly for answering a simple question: Are we compliant or not?

Then a new question arose: Can we at least automate and digitize risk and compliance data, like we have done with so many other processes? The answer to that question is clear: We can, thanks to a growing community of companies providing governance, risk, and compliance (GRC) technology solutions that automate the process of collecting, aggregating, analyzing, and presenting relevant data while reducing their costs to the organization.

…Meets Smarter Compliance

We believe that just as homegrown compliance structures created the opportunity for digitization, a critical mass of companies are now positioned for a new opportunity that may eclipse the earlier one. Data that was once viewed merely as fuel for the compliance machine can now be considered a strategic output in its own right, with value to the business beyond compliance.

Whether it’s a bank mining Know Your Customer data to pitch targeted travel insurance to its customers or a CPG manufacturer analyzing complaint data from the Consumer Financial Protection Bureau to improve its manufacturing methods, we see an opportunity for companies to extract incremental, “offensive” business insight from large risk, compliance, and regulatory data sets.

Why Now?

This opportunity represents a convergence of what may seem unrelated factors. But let’s remember that in a globalized, highly competitive economy there are few trends that arise in isolation.

The first trend we note is a dramatic change in the people sitting in the chief compliance officer (CCO) chair. Russell Reynolds Associates analyzed the career backgrounds of 72 CCOs in banking, insurance and asset management and reported that “gone are the days of principally legal and compliance executives nabbing the top job in the compliance function.” So who’s getting the job instead? According to the report, it’s “broader-focused appointees from consulting, risk and audit. This new breed of appointees would be well-positioned to contextualize compliance (and the associated cultural change) in the wider picture of the organization.” In other words, compliance executive leadership is not just for lawyers and specialists – it’s for multidisciplinary executives who are as fluent with brand value and enterprise risk as they are with the P&L and operations.

The second trend we note is increased use of AI/ML. The transportation sector is a leading example, in part because it is heavily regulated. Shipping companies, notably UPS, now place dozens of monitors on their vehicles for compliance with internal and regulatory rules – and then apply AI to the monitor data to optimize delivery routes and driver behaviors in ways that squeeze out fuel costs and improve customer satisfaction. Fleet operators are further served by solutions from the likes of Keep Truckin, Samsara, and Geotab, which help improve driver safety and increase the precision of preventive maintenance.

The third trend is the evolving consumer privacy landscape. Ironically, more robust data protection and security regulations such as GDPR can actually serve to enhance business value by increasing the trust between companies and their customers. In its January 2018 report, “How GDPR is an Opportunity to Create Business Value”, Gartner notes that “handled effectively, there is great potential to obtain consent to increase data access, use, and sharing rights — aligned with goals of a wider organizational data and analytics strategy. This can help drive competitive advantage, while also helping to achieve compliance in other countries and regions.”

Examples of Leveraging Risk & Compliance Data to Drive Business Value

These are examples of companies that are helping advance the use of risk and compliance data for improving everything from customer experiences to supply chain performance to more effective emergency response:

  • Avetta’s customers use Avetta to certify compliance quality of its suppliers (green flag, yellow flag, red flag) and then mine the data to identify which suppliers are best trained and best equipped for certain on-site jobs.
  • Higher education institutions have long collected data to achieve and maintain external accreditation. Watermark Insights helps universities and colleges not only collect, digitize, and report on that data to demonstrate effectiveness, but also to use it to inform curricular changes and improve student outcomes. 
  • AxiomSL’s financial services clients utilize its data integrity and control platform and its risk calculation and reporting solutions to satisfy regulatory requirements across the globe systematically.  With trusted data, banks are now also able to identify opportunities to fine-tune capital/credit risk and deliver compelling business insights across the enterprise.
  • Global Trade Management solutions from the likes of Descartes and Amber Road (now a part of E2OPEN) have long been used to satisfy mandatory export compliance obligations (e.g. restricted party screenings) and to remain abreast of regional duty programs and tariffs. But by marrying these regulatory datasets with companies’ more “traditional” supply chain data (such as bill of materials and transportation fees), clients are now able to more accurately forecast true landed costs (the total price of the shipment including customs, duties, taxes, tariffs, etc.), all the while minimizing risks and delays.
  • Rave Mobile Safety enables schools to automate collection of and access to critical facility information (e.g., floor plans, alarm information), which they need to remain compliant with fire department ordinances – and it also provide 911 dispatchers and first responders better real-time capabilities when emergencies arise.
  • Information governance and eDiscovery vendor Nuix is well known for its deep technical capabilities in high speed processing and analytics around vast data sets, typically in the context of litigation and investigations.  But enterprise clients are also able to leverage the platform to create “data lakes”, making data more accessible for re-use in future investigations, litigations and data management programs, helping reduce costs.
  • Biopharma companies rely on software from ETQ for much more than compliance with FDA requirements; they also leverage the data to mitigate and prevent high-risk events, scale operations more effectively, and streamline their go-to-market activities.

There are many other examples of organizations across industries utilizing technology from GRC vendors to not only achieve their risk and compliance objectives, but also advance their strategic objectives.  The trend is still very much in its early days, but it provides an exciting avenue for continued growth in the sector.  As an experienced technology focused growth equity firm, TCV is committed to investing in the category innovators in the GRC space and has invested in such companies as Avalara, AxiomSL, Avetta, LegalZoom, Rave Mobile Safety, RiskMetrics Group, and Watermark Insights. 

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The statements, views, and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies. For additional important disclaimers, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.