Paxata was founded in January 2012. It initially raised $2 million in venture capital. The company came out of stealth mode in October 2013. Simultaneously with its public release, Paxata announced an $8 million funding round led by Accel Partners. Adoption of the software grew quickly. In March 2014, In-Q-Tel acquired an interest in the startup.
It raised an additional $18 million in funding in September 2015. It also began working with Cisco to jointly develop the Cisco Data Preparation suite of software and services.
The software has a spreadsheet-based user interface. Patterns and anomalies in the data are color-coded in the spreadsheet. Then users are provided with instructions on how to resolve data quality issues or to supplement the data with contextual information. Data sets and related quality issues can also be addressed in a collaborative environment through the "Paxata Share" feature. It runs on Apache Spark.
Ventana Research said Paxata was in a "noisy marketplace". According to Gartner, while Paxata is an early entrant into the market, many startups and large corporations are making investments in developing similar competing products. According to Gigaom and IT Business Edge, one way Paxata differs is that it automatically merges multiple data-sets into a single table, so it can be easily imported into a visualization or analysis tool.
Gartner said Paxata will have a difficult time finding a compelling pricing model, when many data discovery tools that it supplements provide some similar features. In contrast, Ventana said Paxata's pricing was "a pretty small amount" compared to the amount of time users can save.
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