I read “Palantir May Have Raised More Than We Thought, Perhaps $165 million.” The article presented a revisionist view of how much money is in the Palantir piggy bank. Here’s the number I circled: $165 million since February 2014. I also marked this paragraph:
The Palo Alto company led by CEO Alex Karp disclosed in a Securities and Exchange Commission filing on Friday that it had raised more than $440 million in a funding round that began last November.
The numbers add up. The write up asserted:
The company co-founded by Karp, Peter Thiel, Joe Lonsdale and others in 2004 has raised a total of about $1 billion, with some of that funding coming from In-Q-Tel, the venture arm of U.S. intelligence agencies.
This works out to a $9 billion valuation.
The question now becomes, “How long will it take Palantir to generate sufficient revenue to pay back the investors and turn a profit?” The reason I ask is that IBM is chasing this market along with a legion of other firms.