Today: Jul 22, 2024

Ex-Google squad’s startup zooms towards $2 billion valuation

7 months ago

Glean AI, a startup founded by former Google search engineers is heading towards a $2 Billion valuation, according to sources. The tech venture, which uses OpenAI’s language models to help corporate employees search their companies’ internal data, is reportedly in discussions with investors for a new round of funding to the tune of $200 million. Key points of the story include:

  • The funding round would double Glean’s valuation from its status as of May 2022.
  • The investment is led by Kleiner Perkins, which had previously invested in Glean’s three earlier rounds of funding.
  • Glean’s annual recurring revenue has surpassed $30 million, three times higher than its pace last year.
  • Glean’s success is indicative of investors’ sustained interest in revenue-generating startups targeting corporate clients despite cooling interest in early-stage startups.

With Glean AI’s rapid growth and impressive revenue generation, the interest from investors is not surprising. The company’s data-search tool, which is powered by artificial intelligence, addresses the often under-managed issue of accessing and utilizing internal data within corporations. Glean’s upcoming funding round and potential $2 billion valuation is a strong testament to the perceived value of its technology and services.

Kleiner Perkins’ continued investment in Glean shows consistent faith in the company’s potential. As Glean’s supporter from the outset, their investment bodes well for the startup’s future prospects. Glean does face competition from several other AI-based corporate data search providers, but its rapid revenue growth and projected valuation suggest a capability to hold its own in the market.

In times when the investor interest seems to be cooling towards the newer startups, Glean’s success story stands out. Its multi-fold increase in revenue and potentially doubled valuation underscores that startups which are able to deliver practical, revenue-generating solutions continue to attract strong investor support.