German Data Science Startup KNIME Secures $30 Million to Help Businesses Harness Their Data

Becoming data-driven remains a significant challenge for many organizations, even those with dedicated analytics teams. A recent Gartner survey revealed that less than half of data and analytics leaders find their teams effective in providing organizational value.

Michael Berthold, a German computer scientist and former professor at Konstanz University, noticed this issue while consulting for various businesses. These companies often needed a platform to effectively process and analyze their data. Recognizing this gap, Berthold and his colleagues, Bernd Wiswedel and Thomas Gabriel, developed KNIME, an open-source data processing platform that has now evolved into a venture capital-backed startup.

KNIME offers a modular, scalable, and open data processing platform that integrates different data loading, processing, transformation, analysis, and visualization modules. Initially designed to be professional-grade, KNIME has grown to support various application areas and projects.

Today, KNIME serves 400 customers, including notable names like Audi, AMD, Lilly, Novartis, Bayer, Sanofi, Genentech, the FDA, P&G, and Mercedes-Benz. The company has seen annual recurring revenue growth of 30-40% per year since its inception in 2008, now reaching approximately €30 million ($32.35 million).

KNIME's software allows users to create visual, no-code workflows that integrate with organizational systems. Users can build pipelines to transform data, generate reports and visualizations, and compare datasets, regardless of their source. Through KNIME's business hub, companies can automate, deploy, and govern data workflows, and build internal libraries for team collaboration.

Despite KNIME's premium services, with annual licenses starting at $39,900, customers are willing to invest, attracting the attention of investors. This week, KNIME announced a $30 million investment from Invus, bringing its total funding to $50 million. The new funds will be used for product development, team expansion, and customer acquisition across the U.S., Europe, the Middle East, and Africa.

To stay competitive against rivals like Dataiku, Alteryx, IBM, and SAS, KNIME recently launched an AI assistant to help users with data projects. The company also plans to expand its software-as-a-service offerings, targeting small- and medium-sized businesses with pay-as-you-go tiers.

“Although we were close to profitability in 2024, the additional investment will help us grow further in the coming years,” Berthold stated. “Despite a slowdown in the tech sector, the adoption of our open-source analytics platform has continued, positioning KNIME well for the future.”