Fortress Investment Group has committed $100m in financing to Dataminr, marking a strategic investment in the artificial intelligence platform, which is valued at $4.1bn, according to a report by Bloomberg.
The deal, structured through convertible debt, is a favoured mechanism for startups, allowing them to raise capital while minimising equity dilution ahead of a potential IPO.
In March, Dataminr raised $85m in a combination of traditional debt and convertible bonds from HSBC and NightDragon, a late-stage investment firm. NightDragon, alongside Fortress, holds the convertible bonds issued by the company.
Private equity firms have increasingly focused on privately-held tech companies in the lead-up to their public market debuts. Firms such as Databricks and Dream Games have also turned to private funding to fuel expansion over the past year.
The latest funding follows a $475m round in 2021, which helped solidify Dataminr’s $4.1bn valuation. That round attracted investments from notable firms including Eldridge, ArrowMark Partners, and MSD Capital.
Dataminr has also seen leadership changes, appointing Brian Gumbel as president and COO, following his tenure at pre-IPO cybersecurity company Armis. Additionally, Matthew Harrell joined as chief partner officer, coming from Cloudflare. These moves followed a reported 20% workforce reduction in 2023.
With approximately $200m in annual recurring revenue, Dataminr provides real-time alerts using sources like X (formerly Twitter) and promotes its ‘First Alert’ service, which is relied upon by first responders during natural disasters and critical events.
The company’s client base includes the US Department of Defense and NATO, and it plans to expand further into the corporate market. Early investors include former CEOs Vikram Pandit of Citigroup, John Mack of Morgan Stanley, and Tom Glocer of Thomson Reuters.
Dataminr’s real-time alert service competes with similar offerings from Bloomberg LP, the parent company of Bloomberg News.
