Snowflake's $70B Dollar Growth Strategy
The Growth Strategy Snowflake Used to Get to a $70 Billion Market Cap
While having the 3rd highest revenue growth of any software IPO, everPhoto by Franki Chamaki on UnsplashOn September 16 2020, Snowflake broke the record for the largest software IPO in history. Their listing price was $120, which more than doubled during the first day, and ended up closing at $253.93 — raising more than $3.4 billion, and valuing the company at over $70 billion.This meant the company was more valuable than Uber, Dell, and General Motors.This was achieved in (essentially) just 6 years. Though the company was founded in 2012, they only came out of stealth mode in 2014, opening for ‘general access’ in June 2015 — at which time it had roughly 80 paying customers.Today, they have over 3,400 customers, including notables like Capital One and Adobe.What’s special about the product?To understand how they grew so fast, a bit of background knowledge on them as a company is necessary.Snowflake provides data warehousing services — “Data storage as a service”. Compared with traditional solutions, the value Snowflake provides is that you can not only store data in the cloud with them, but that data can be queried too.