Deepgram, a voice AI platform, announced a $130 million Series C funding round led by AVP, achieving a valuation of $1.3 billion. The company also revealed the acquisition of a Y Combinator-backed AI startup, though the specific details of the acquisition were not disclosed.
The Series C round saw participation from existing investors Alkeon, In-Q-Tel, Madrona, Tiger, Wing, and Y Combinator, alongside new investors Alumni Ventures, Columbia University, Princeville Capital, Twilio, and SAP. With this latest injection of capital, Deepgram's total funding to date exceeds $215 million.
This funding round underscores the growing investor confidence in the voice AI sector, fueled by the increasing adoption of voice technology across various industries including sales, marketing, customer support, and consumer applications. Deepgram's raise follows a trend of significant investments in voice AI companies last year, including Seasame's $250 million Series B, ElevenLabs' $80 million Series B, and Gradium's $70 million seed round.
Deepgram provides a platform for speech recognition and natural language processing, enabling businesses to transcribe and analyze audio data at scale. The company's technology is used for a variety of applications, such as analyzing customer calls, automating meeting notes, and powering voice-enabled applications. Elizabeth de Saint-Aignan, a partner at AVP, noted the increasing prevalence of voice AI in enterprise discussions about AI adoption, which prompted the fund's investment in Deepgram.
Looking ahead, Deepgram is positioned to capitalize on the expanding market for voice AI solutions. The new funding will likely be used to further develop its platform, expand its team, and pursue new market opportunities. The acquisition of the Y Combinator AI startup could also provide Deepgram with new technologies or talent to enhance its offerings. The company's success will depend on its ability to continue innovating and meeting the evolving needs of businesses seeking to leverage the power of voice AI.
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