# MapR Technologies (2009 – 2019)

- URL: https://girisimcikafasi.com/en/startup-graveyard/mapr/
- Sector: Enterprise software (SaaS)
- Country: United States
- Total funding: $280 million
- Unicorn: yes, peak valuation $1 billion
- Cause of closure: Ran out of cash

## What did it do?

MapR was founded in Santa Clara in 2009 to make open-source Hadoop fit for enterprise use. It sold the Converged Data Platform, which combined a Hadoop distribution, a distributed file system, a database and event stream processing. Customers included Cisco, Cision and TransUnion. It raised USD 280 million across seven rounds, including a USD 110 million round led by Google Capital in June 2014.

## Why did it shut down?

The company was valued above USD 1 billion in a 2016 round and last raised USD 56 million in 2017. Rivals Cloudera and Hortonworks merged in 2018, and MapR tried to reposition itself with machine learning and container features. Weak first-quarter results in 2019 hurt debt talks. In May 2019 it told California it would close its Santa Clara headquarters and cut 122 jobs unless it found funding by 14 June. The deadline moved to 3 July, but no deal was announced. On 5 August 2019 HPE said it had bought the technology, intellectual property and business assets for an undisclosed sum.

## The story

In 2009 the name of the big data excitement was Hadoop. MapR was founded in Santa Clara on the promise of making this open-source tool safe for large companies. The company of John Schroeder and M.C. Srivas grew fast. USD 110 million arrived in June 2014 in a round led by Google Capital, and the valuation passed USD 1 billion after a 2016 round. There was even a plan to go public in June 2017.

But the listing never happened. The last money was USD 56 million in 2017. In 2018 two big rivals, Cloudera and Hortonworks, merged. MapR tried to retell itself as a data platform for machine learning and containers.

When the first quarter of 2019 turned out weak, debt talks broke down. In May 2019 the company gave state officials notice of closure: unless money came by 14 June, 122 people would lose their jobs. The deadline moved to 3 July and that date passed too. On 5 August 2019 HPE bought the assets for an undisclosed sum. A billion-dollar company became a line in someone else's product catalogue.

## Lessons

- If you sell an enterprise layer on top of open source, you must prove your edge again every year. Staying independent after your rivals merged in 2018 was not enough.
- If your last equity round was in 2017, do not plan to solve a 2019 cash gap with debt. One weak quarter broke the talks; use your funding window while results are good.
- Start sale talks before the money runs out. Bargaining under a WARN notice means the buyer sets the price by your calendar.

## Sources

- [Software company MapR, once worth more than $1 billion, shutting down](https://preview-prod.w.sfchronicle.com/business/article/Software-company-MapR-once-worth-more-than-1-13904888.php)
- [MapR misses deadline for sale](https://www.theregister.com/2019/07/04/mapr_misses_deadline_for_sale/)
- [HPE acquires MapR assets, extending lifeline to troubled analytics company](https://ciodive.com/news/hpe-acquires-mapr-assets-extending-lifeline-to-troubled-analytics-company/560265)
- [MapR](https://en.wikipedia.org/wiki/MapR)