Total amount raised
$45.2 Millions
Latest funding date
Location
deepset has successfully raised €27 million in a Series B funding round to assist companies in leveraging their own data. The company has also secured $30 million to expand its product offerings and increase its workforce.
With 16 investors backing the company, including Lunar Ventures and System.One, deepset is poised for significant growth. Keep reading to explore the intricacies of deepset's fundraising journey and the investors supporting this innovative platform.
What Is deepset?
Founded in 2018, deepset is headquartered in Berlin, Germany, with an additional office in New York, United States. The company was established by Malte Pietsch, Milos Rusic, and Timo Möller.
Operating in the fields of Artificial Intelligence, Generative AI, Machine Learning, and Natural Language Processing, deepset specializes in building custom AI agents and applications using large language models (LLMs). The company employs between 51 and 100 people.
deepset is known for its Haystack open-source LLM framework and deepset Cloud, a platform designed for enterprise AI teams. The company has been instrumental in helping AI teams apply the latest NLP technologies to real-world applications.
How Much Funding Has deepset Raised?
- Pre-Seed Round
- Amount Raised: $1.6M
- Date: March 2021
- Lead Investors: Lunar Ventures, System.One
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To bootstrap the business by training custom NLP models for enterprises.
- Series A
- Amount Raised: $14M
- Date: April 2022
- Lead Investors: Google Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and expand deepset Cloud and the Haystack framework.
- Series B
- Amount Raised: $30M
- Date: August 2023
- Lead Investors: Balderton Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product offerings, increase workforce, and support international expansion.
Total Amount Raised: $45.6M. Current Valuation: Not publicly disclosed.
Key Investors
- Balderton Capital
- Details: Balderton Capital is a leading European venture capital firm that invests in early-stage technology companies. They are known for their extensive portfolio and active involvement in the growth of their investments.
- Investment Focus Areas: Early-stage technology companies, software, fintech, consumer internet.
- Notable Investments: Revolut, Citymapper, GoCardless.
- GV (Google Ventures)
- Details: GV is the venture capital investment arm of Alphabet Inc., focusing on funding innovative startups. They provide support across various stages, from seed to growth.
- Investment Focus Areas: Life sciences, artificial intelligence, robotics, transportation, cybersecurity.
- Notable Investments: Uber, Slack, Nest.
- Harpoon Ventures
- Details: Harpoon Ventures is a venture capital firm that invests in early-stage technology companies, often with a focus on defense and enterprise software. They aim to support companies that can have a significant impact on national security.
- Investment Focus Areas: Defense, enterprise software, cybersecurity.
- Notable Investments: Anduril Industries, Shield AI, Rebellion Defense.
- System.One
- Details: System.One is a venture capital firm that invests in early-stage technology companies. They focus on supporting innovative startups that have the potential to disrupt their respective industries.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Specific notable investments are not mentioned.
- Lunar Ventures
- Details: Lunar Ventures is a venture capital firm specializing in deep tech startups. They aim to support companies that are pushing the boundaries of technology and innovation.
- Investment Focus Areas: Deep tech startups.
- Notable Investments: Specific notable investments are not mentioned.
What's Next for deepset?
deepset stands at the cusp of significant opportunities, driven by the increasing reliance on large language models (LLMs) and natural language processing (NLP) in enterprise applications. With enterprises expected to double their data creation by 2025, deepset's platforms like deepset Cloud and Haystack are poised to help organizations manage and utilize this data effectively. The company's focus on reducing time-to-market for AI applications and enabling model-agnostic development positions it well for substantial growth.
Future fundraising opportunities appear promising, given the strong investor interest demonstrated by the recent €27 million and $30 million funding rounds. As deepset continues to expand its product offerings and international reach, it is likely to attract further investment to support its ambitious growth plans. The potential for strategic acquisitions also looms, as the company seeks to enhance its technology stack and market presence.
However, deepset faces challenges in keeping up with the fast-paced advancements in LLM technology and ensuring their platform remains user-friendly for enterprises without specialized ML expertise. Competition from other AI and NLP solution providers, along with the need to address data privacy and security concerns, will require continuous innovation and strategic planning. Despite these hurdles, deepset's strong foundation and clear vision make it a formidable player in the AI landscape.
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