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DeepL, the AI language translation startup, nabs $300M on a $2B valuation to focus on B2B growth | TechCrunch

May 22, 2024 - techcrunch.com
AI startup DeepL has raised an additional $300 million in a funding round led by Index Ventures, bringing its valuation to $2 billion. The company, which competes with Google Translate and Grammarly, plans to use the funds to boost sales and marketing efforts, as well as further research and development. Despite not yet being profitable, DeepL has grown organically and has over 100,000 businesses using its automated text translation and writing tools.

The startup faces stiff competition from tech giants like Google, Amazon, and Microsoft, as well as other AI companies. However, DeepL is focusing on making AI more seamless and "human-like", and its latest product, DeepL Write Pro, is tailored specifically for businesses. The company's clients include Zendesk, Nikkei, Coursera, and Deutsche Bahn. The funding round also saw participation from ICONIQ Growth, Teachers’ Venture Growth, and previous backers IVP, Atomico, and WiL.

Key takeaways:

  • AI startup DeepL has raised an additional $300 million in funding, led by Index Ventures, bringing its valuation to $2 billion.
  • The company, which competes with Google Translate and Grammarly, plans to use the funding to increase sales and marketing efforts, as well as further research and development.
  • DeepL currently supports 32 languages on its platform and has recently launched DeepL Write Pro, a writing assistant tailored for businesses.
  • Despite its success, DeepL faces competition from larger platform companies like Google, Amazon, and Microsoft, as well as other AI companies specializing in the same area.
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