C3 IoT, the data-analytics-software startup, will go public when it’s ready and not a moment sooner, said Founder and CEO Thomas Siebel.
C3 IoT said Sept. 1 that it raised $70 million in a Series D round led by TPG Growth. Other investors in the round include Sutter Hill, Interwest Partners and Siebel, a statement said. TPG Growth provided $60 million of the D round and will have a minority stake in C3, a source familiar with the situation said. Siebel retains a majority.
Founded in 2009, C3 has raised $185 million through four rounds, including the current $70 million. With the late-stage round, some expect an IPO for C3.
“I will not take [C3] public until it has a highly predictable revenue and earnings stream,” Siebel said in an interview with Buyouts. Siebel is founder and former chairman and CEO of Siebel Systems, which Oracle acquired in 2006 for $5.8 billion.
“I was the CEO of a public company for 43 quarters. I’m not entirely inexperienced in this. We will take this [C3] public when it is ready.”
He also doesn’t think C3 will take another round of funding. “This will be the last round of private funding for this company,” Siebel said.
C3 is part of the Internet of Things, where all devices are connected. The Redwood City, California, company’s software collects and analyzes data produced by Internet-based sensors attached to devices. Customers include Engie, the U.S. State Department and Enel SpA. C3 has about 110 employees and revenue is expected to hit $50 million this year, Siebel said.
The TPG funding means C3 is well capitalized. “[TPG] brings a lot more than just money. … They are an absolutely five-star operation,” said Siebel, who has been an LP of TPG funds for many years.
C3 is TPG Growth’s third recent investment in the big-data space, said Nehal Raj, a partner. Earlier this year, TPG Growth led the A round for Noodle Analytics Inc. (How much Noodle raised is unclear.) The firm also led Domo’s $125 million round in 2014.
Large companies don’t know what to do with all the data they produce, Raj said. “The IoT market is at a tipping point and will favor software companies that can help with analysis,” he said.
TPG Growth used its third fund, which closed at $3 billion in 2015, to invest in C3.
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