Big money for energy exploration in the cloud.
Drilling Info, a big data company focused on the oil and gas exploration industry, today will announce that it has raised $165 million in new financing. Part of the proceeds will be used to buy out existing shareholders, while deal lead Insight Venture Partners will hold a majority ownership position.
Joining Insight on the deal were Battery Ventures and Eastern Advisors Private Fund. Vaquero Capital managed the process.
Drilling Info was founded back in 2000, and originally funded by some oil and gas industry executives. The primary purpose was to better meet global demand for industry intelligence and bench-marking information, and today the Austin, Texas-based company is profitable with tens of millions in annual revenue.
"If you go back 10 years, oil and gas companies would hire consultants to go to repositories of information at the state level, and manually collect data, put it into a spreadsheet and analyze it," says Deven Parekh, a managing director with Insight. "What we're really doing now is making that data available through regular workflows on a daily basis. It allows customers to better understand the future value of properties they own, future acquisition opportunities and for international companies to know what's happening in the domestic market."
Insight is best-known for Internet deal like Tumblr and Twitter, but Parekh said that Drilling Info fits well into its cloud strategy. Specifically, he says that there are a slew of vertical opportunities in the data analytics space, including fellow Insight portfolio company eVestment Alliance (focused on financial services).
"In three or four years, the technology itself may become fairly standard, but the key will be in having the deep vertical knowledge," Parekh says. "In oil and gas, we think that Drilling Info is that company."
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Insight Venture Partners, the New York-based late-stage and growth equity firm whose portfolio includes Twitter, recently told the SEC that it had closed on approximately $1.05 billion for its seventh fund (kudos to Connie for noticing it first).
The firm isn't commenting, natch, but a source tells me that this only represents a first close. A second close is expected later this quarter, on a bit more than the $1.25 billion MOREDan Primack - Feb 2, 2011 10:08 AM ET
Insight Venture Partners, a private equity firm whose investments include Twitter and ExactTarget, is back in the fundraising market. Not for a general vehicle - that would be silly, since it hasn't even called 60% of the $1.25 billion it raised in 2007 - but rather for a co-invest vehicle that would support larger investments.
No huge surprise that Insight is doing this, considering that it also had a co-invest sidecar to its prior fund. MOREDan Primack - Sep 15, 2010 1:38 PM ET
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