Total amount raised
$73 Millions
Latest funding date
2/1/2021
Location
Otter.ai has successfully raised significant funding through multiple rounds, with the latest being a Series B. The platform offers AI-powered solutions for automating meeting notes and real-time transcription.
Keep reading to explore the intricacies of Otter.ai's fundraising journey and the investors backing this innovative platform.
What Is Otter.ai?
Otter.ai, founded in February 2016 by Sam Liang and Yun Fu, is headquartered in Mountain View, California. The company specializes in AI-powered meeting note-taking and transcription services, aiming to enhance productivity by automating the capture of meeting notes and generating summaries.
Otter.ai's platform integrates with popular tools like Zoom, Google Meet, and Slack, making it a versatile solution for business professionals, journalists, and students. The app offers real-time transcription, speaker identification, and keyword extraction, ensuring that important information from voice conversations is easily accessible and actionable.
With a team of 101-250 employees, Otter.ai continues to innovate in the field of AI-driven productivity tools, helping users streamline their workflow and improve collaboration.
How Much Funding Has Otter.ai Raised?
- Seed Round
- Amount Raised: $3M
- Date: September 2016
- Lead Investors: DFJ DragonFund, Draper Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial product and build the core team.
- Series A
- Amount Raised: $10M
- Date: November 2017
- Lead Investors: Horizons Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product features and scale the platform.
- Venture Round
- Amount Raised: $10M
- Date: January 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance AI capabilities and improve integration with other platforms.
- Convertible Note
- Amount Raised: $10M
- Date: February 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and prepare for future growth.
- Series B
- Amount Raised: $40M
- Date: February 2021
- Lead Investors: Spectrum Equity
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations, increase market reach, and invest in product innovation.
In total, Otter.ai has raised $73M. The current valuation is not publicly disclosed.
Key Investors
- Spectrum Equity
- Details: Spectrum Equity is a growth equity firm that invests in internet-enabled software and information services companies.
- Investment Focus Areas: Internet-enabled software, information services.
- Notable Investments: Ancestry.com, Grubhub, SurveyMonkey.
- Horizons Ventures
- Details: Horizons Ventures is a venture capital firm based in Hong Kong that invests in disruptive and technology-focused startups.
- Investment Focus Areas: Technology, disruptive startups.
- Notable Investments: Facebook, Spotify, Zoom.
- Draper Associates
- Details: Draper Associates is a seed-stage venture capital firm founded by Tim Draper.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Tesla, Skype, Baidu.
- GGV Capital
- Details: GGV Capital is a venture capital firm that invests in seed-to-growth stage companies in the US and China.
- Investment Focus Areas: Consumer, internet, enterprise, smart tech.
- Notable Investments: Alibaba, Slack, Square.
- Draper Dragon Fund
- Details: Draper Dragon Fund is a venture capital firm that focuses on early-stage investments in technology companies.
- Investment Focus Areas: Technology, early-stage companies.
- Notable Investments: Ledger, VeChain, Telegram.
What's Next for Otter.ai?
Otter.ai stands at the cusp of significant growth, driven by the increasing reliance on AI-powered tools for productivity and collaboration. With its integration into popular platforms like Zoom and Google Meet, the company is poised to expand its user base beyond the current 230 countries. The potential market is vast, with the audio transcription sector projected to be worth $31.82 billion by 2025.
Future fundraising opportunities seem promising, given the successful Series B round and the involvement of prominent investors. This financial backing could pave the way for further rounds to support Otter.ai's ambitious plans, including tripling its headcount and enhancing its AI capabilities. However, the company may face challenges such as intense competition and ensuring data security and privacy for its users.
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