DataSift raises $42m in new funding

Twitter 'Firehose' provider DataSift has raised a significant new tranche of funding worth $42 million [£26 million] and in the process bring the total amount it has raised to $70 million [£42.6 million].

DataSift, which is a British alternative to Apple-owned Topsy, is planning to use the cash to increase its growth into other territories that is driven by its base of technology firms, agencies and enterprises.

“Social is generating billions of conversations every day and that data is fundamentally transforming the way companies communicate and make strategic decisions, “ commented Rob Bailey, CEO of DataSift. “Social has now moved from mainstream to mission critical for enterprises and we are excited to power the applications in the social ecosystem and accelerate social data adoption.”

Specifically it will use the money to pump money into its social data platform, expand upon its global footprint, increase investment in sales and marketing, as well as further develop the social data ecosystem and expand into new data types.

Insight Venture Partners with additional input from existing investors Scale Venture Partners, Upfront Ventures, IA Ventures, Northgate Capital, Daher Capital and Cendana Capital led the Series C funding.

As part of the funding round DataSift has appointed Insight Venture Partners cofounder and MD Jeff Horing to the board of directors with the hope his expertise in raising venture funding for internet businesses will help DataSift grow further.

"Our vision has always been about bringing together social data and business data to bring real understanding", noted Nick Halstead, founder and CTO of DataSift. “We are thrilled to be partnered with Jeff Horing and the Insight team to accelerate this process."

The new funding comes just after Apple decided to plunge $200 million [£122 million] into its purchase of fellow Firehose provider Topsy with Halstead having his own theory on the transaction.

“My hunch is they could either use it for powering a Siri experience for social media, or they’re interested in the technology for analysing some of their internal data,” he told the Daily Telegraph.

DataSift already works with a large number of worldwide partners including Coca Cola, Dell and the BBC, and the numbers are set to swell as it starts to expand quickly on a worldwide basis.