Neo4j Raises €47M and Prepares for US IPO as Valuation Tops €2Billion

Neo4j, the Malmö-founded and Malmö-San Francisco-based graph database pioneer, has secured € 47 million ($50 million) in funding from Noteus Partners, boosting its valuation to over € 2 billion. The announcement comes as co-founder and CEO Emil Eifrem confirmed that the company is actively preparing for an initial public offering (IPO), likely to take place in the US.

Neo4j, established in 2007 in Malmö has evolved into a global leader in graph database technology, used by major enterprises, amongst them 20 of the largest banks in the US. Although officially headquartered in Silicon Valley since 2011, the company retains strong ties to its Swedish origins, with Eifrem continuing to operate from Malmö and key operations based in the city.

IPO on the Horizon

The planned IPO is expected to follow Klarna’s footsteps in targeting a US listing, taking advantage of the more favorable analyst coverage and liquidity offered by American exchanges. Speaking with Bloomberg, Eifrem highlighted the importance of being ready for the right market conditions:

“I’m focused on making sure that we’re IPO-able, that we have the ability to go public when the time is right,”

Eifrem stated

While the exact timeline and choice of banks for the IPO remain undecided, Eifrem noted that the US is the most “logical” venue for listing, echoing sentiments previously expressed by major stakeholder Greenbridge Holdings.

Financial Strength and Growth

Neo4j’s financial performance underpins its strong market position. The company boasts an impressive $200 million in annual recurring revenue and anticipates becoming cash flow positive in 2024. The latest funding round from Noteus Partners underscores investor confidence in Neo4j’s continued expansion and leadership in graph database technology.

Driving Innovation in Data Science and Graph Technology

Neo4j’s tools are critical for enterprises leveraging complex data relationships to drive insights in industries such as finance, retail, and technology. The company’s graph database technology is particularly valuable for applications such as fraud detection, recommendation engines, and network optimization.

A Milestone for both this region and Silicon Valley

As Neo4j gears up for its IPO, the development marks another milestone for this regions tech ecosystem, highlighting its ability to incubate another global success stories. For Silicon Valley, it reinforces the region’s appeal as a hub for innovative technology companies with global ambitions.

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