The New Era of Data as a Service- How DaaS is Redefining the Data Economy

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In today’s world, data isn’t just an asset—it’s a vital currency driving everything from investment strategies to consumer behavior. Tracxn’s 2024 Feed Report on Data as a Service (DaaS) illustrates a new era where the flow and accessibility of data are being monetized like never before. The report paints a vivid picture of how the DaaS market is maturing and transforming industries by providing new models of data access and utilization.

The Rise of Late-Stage Funding in DaaS

One of the key trends highlighted is the rise of late-stage funding in DaaS, a space traditionally dominated by early-stage investments. A prime example is AlphaSense, an AI-powered market intelligence platform. In 2024, AlphaSense secured a whopping $650M in Series F funding, bringing its total raised to $1.4 billion. This trend indicates that mature DaaS companies are no longer just niche providers but essential tools for organizations looking to harness actionable insights from alternative data sources.

Alternative Data Takes Center Stage

The explosion of alternative data providers is another fascinating shift. In recent years, the demand for data beyond the traditional financial or consumer datasets has surged. Geo-spatial intelligence and crowd-sourced data are gaining traction, as companies and governments alike seek granular insights for decision-making.

For instance, firms like Planet, which raised $484M in funding, use satellite imagery to provide real-time environmental data, helping industries optimize their operations. Whether it's monitoring crop health or detecting illegal deforestation, Planet demonstrates how DaaS platforms are changing the way we see the world.

Acquisitions in the Data Gold Rush

As DaaS companies grow, they are becoming prime acquisition targets. The report shows that IHS Markit and Refinitiv are leading the charge with multi-billion-dollar deals, indicating how large corporations are consolidating data providers to strengthen their portfolios.

This acquisition spree echoes how data is evolving into a critical resource akin to oil or gold. In 2024, for instance, BlackRock’s $3.2B acquisition of Preqin, a private equity-focused data platform, demonstrates how financial institutions are doubling down on data-driven decision-making.

Diversifying DaaS: Beyond B2B

While traditional B2B data providers still dominate, the DaaS space is diversifying. The report highlights new categories like procurement intelligence, healthcare data, and weather data. These are no longer niche offerings but mainstream solutions. For instance, companies offering ocean data are playing an increasingly vital role in logistics and maritime industries, optimizing shipping routes and lowering costs.

Take Miovision, which raised $195M in Series D funding to offer real-time traffic data using sensor technology. Such advancements in transportation data are helping cities tackle congestion issues, demonstrating the impact DaaS can have across industries.

Conclusion: The Data-Driven Future

The future of DaaS lies in its ability to make data more accessible, more actionable, and more profitable. Late-stage funding, alternative data, acquisitions, and diversified business models are all signs of a maturing industry that’s ready to shape the next wave of innovation. For businesses and investors alike, the message is clear: data is the future, and those who can harness it effectively will have a decisive advantage.