Sequoia-Backed Enterprise AI Startup Glean Nears $4.5B Valuation In New Funding Round: Report

Enterprise artificial intelligence startup Glean is on the verge of securing a funding round that could see its valuation double to $4.5 billion, reflecting the continued investor interest in AI technology.

What Happened: Glean is in the final stages of negotiations for a $250 million investment, The Wall Street Journal reported on Thursday, citing people familiar with the matter. This would mark a significant increase from the company’s valuation six months ago.

The investment is expected to be led by venture firm DST Global, founded by Russian-Israeli investor Yuri Milner. However, details of the investment are yet to be finalized and are subject to change.

Glean, established in 2019 by former Google search engineer Arvind Jain, offers AI-powered search software that assists employees in accessing information across their organizations. The company’s subscription revenue has recently reached $55 million annually and is projected to hit $100 million by year-end.

Glean's customer base includes Instacart, Pinterest, Reddit, and Duolingo. The startup was previously valued at $2.2 billion in February after raising $200 million from investors like Kleiner Perkins, Lightspeed Venture Partners, and Sequoia Capital.

Glean did not immediately respond to Benzinga's request for comment.

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Why It Matters: The AI industry has witnessed a surge in investor interest and funding rounds. For instance, Anthropic, backed by Jeff Bezos, and Menlo Ventures launched a $100 million fund to support early-stage AI startups. This initiative aims to provide financial backing and access to advanced AI technology, increasing competition in the sector.

In July, Nvidia Corp.-backed AI startup Cohere achieved a valuation of $5.5 billion, making it one of Canada’s largest startups. This valuation was the result of a $500 million Series D funding round led by PSP Investments.

Earlier in May, AI startup Scale secured $1 billion from investors, including Advanced Micro Devices Inc., Amazon.com Inc., and Meta Platforms Inc., doubling its valuation to $13.8 billion. This surge in AI funding has been attributed to the increasing demand for AI technology across various industries.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote