IVP Leads Investment in AI Search Startup Perplexity at $500 Million Valuation

Venture capital firm IVP is leading an investment in Perplexity, an AI-powered search engine developer that rivals OpenAI’s ChatGPT and Google’s Bard. The deal values the one-year-old company at approximately $500 million, a significant increase from its $150 million post-investment valuation from a previous financing round in March.

Currently, Perplexity is generating $3 million in annual recurring revenue. This means the deal will provide it with a valuation multiple of about 150 times ARR. Despite being a high price for a company with early traction, it is comparable to other generative AI-related startups such as Anthropic and Hugging Face that have recently secured funding.

Key takeaways

IVP is leading an investment in Perplexity, a developer of an AI-powered search engine that competes with OpenAI’s ChatGPT and Google’s Bard.
The deal values Perplexity at around $500 million, including the new capital, a significant increase from a $150 million post-investment valuation from an earlier financing announced in March.
Perplexity is generating $3 million in annual recurring revenue as of this month.
The deal will give Perplexity a valuation multiple of about 150 times ARR, a high price for a company with early traction but comparable to some generative AI-related startups that recently raised cash.

IVP Leads Investment in AI Search Startup Perplexity at $500 Million Valuation

Key takeaways

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