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CONFLUENT

Netfigo Verdict
on Confluent

The company that commercialized the plumbing underneath every real-time application on the internet. Apache Kafka — which they invented at LinkedIn — processes trillions of events daily at companies like Netflix, Uber, and Goldman Sachs. Confluent makes Kafka usable for mere mortals. Revenue approaching $1 billion. The challenge: Kafka is open-source and free. AWS, Azure, and GCP all offer managed Kafka services. Confluent has to keep being better than free, which is a tough position but they've managed it for a decade.

Founded

2014

HQ

Mountain View, CA

Total Raised

$456 million

Founder

Jay Kreps, Neha Narkhede & Jun Rao

Status

Public (NASDAQ: CFLT) — market cap ~$9 billion

THE ORIGIN STORY

Jay Kreps, Neha Narkhede, and Jun Rao built Apache Kafka at LinkedIn to solve a massive data problem: how do you process billions of events per day in real-time? Kafka became the most popular real-time data streaming platform in the world.

They left LinkedIn to start Confluent — the commercial company behind Kafka — to make it easier for every company to use real-time data streaming.

WHAT THEY ACTUALLY DO

Open-core SaaS. Confluent Cloud (fully managed service) charges based on data throughput.

Confluent Platform (self-managed) via enterprise licensing. Revenue exceeded $900 million in fiscal 2024.

Cloud revenue growing 40%+ year-over-year.

THE PRODUCTS

Confluent Cloud (managed Kafka), Confluent Platform (self-managed Kafka), ksqlDB (stream processing), Connect (data connectors), Stream Governance, Flink on Confluent (stream processing).

HOW THEY GREW

Cloud-first growth. Confluent Cloud (the managed service) is growing faster than the self-managed platform.

Making Kafka easy to use — not just powerful — is the key. Also building features on top of streaming: Flink-based stream processing, connectors to every data system, and governance tools.

THE HARD PART

Convincing enterprises that real-time data streaming is essential, not optional. Most companies still process data in batches (daily, hourly) rather than real-time streams.

Confluent has to educate the market while competing with open-source Kafka (which is free) and cloud providers building their own streaming services.

WHO BACKED THEM

Benchmark, Index Ventures, Sequoia Capital, Coatue Management, Altimeter Capital

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