Data startup Alation announced it raised $123 million at a more than $1.7 billion valuation.
There are also smaller companies in the data cataloging space including firms like Metaphor Data, Acryl Data, and Stemma.
Data tools like Alation, however, have been able to still grow and find financing, Sangani said.
"When you have to make hard choices you need good data, and that logic extends to data tools," Sangani said.
Databricks and Snowflake are also co-investors in data collaboration tool Hex, $900 million machine learning startup Tecton, and $4.2 billion data juggernaut Dbt Labs.