Latest news with #GeneralCatalyst
Yahoo
10 hours ago
- Business
- Yahoo
Grammarly receives $1bn from General Catalyst to expand AI
Grammarly has secured $1bn in financing from General Catalyst to expand its AI productivity platform. The investment will be used to scale sales, marketing, and strategic acquisitions, enabling Grammarly to grow its customer base and extend its reach. General Catalyst provided the go-to-market funding from its Customer Value Fund (CVF). Grammarly said that its AI-powered platform is relied upon by more then 40 million users daily, contributing to an annual revenue exceeding $700m. General Catalyst CEO Hemant Taneja said: 'We have been working with the Grammarly team for years as they became an early leader in applied AI. 'We are confident that this extension of our partnership will create significant long-term value and continue to drive Grammarly's ability to accelerate enterprise adoption through transformed workflows and communication across industries.' According to Reuters, the funding from General Catalyst's CVF represents one of the largest investments aimed at supporting late-stage tech firms such as Grammarly in boosting growth through new customer acquisition. This targeted capital enables the company to redirect resources typically allocated to sales and marketing toward enhancing product development. Unlike conventional investments, General Catalyst will not take an equity stake in Grammarly. Instead, the firm will receive a limited return tied to the revenue generated from the use of these funds, structured as a percentage of the income from customer acquisition initiatives. In January 2025, Grammarly acquired the productivity platform Coda and appointed its former CEO, Shishir Mehrotra, as Grammarly's CEO. Commenting on the latest investment, Mehrotra said: 'Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate. I am energised by the innovation happening across our teams as Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises. 'The breadth of what we can now offer is truly compelling. With General Catalyst's continued partnership and confidence in our vision, we can scale faster and more sustainably to reach the millions of people who can benefit from our tools.' "Grammarly receives $1bn from General Catalyst to expand AI" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Hindu
2 days ago
- Business
- The Hindu
Grammarly secures $1 billion from General Catalyst to build AI productivity platform
Grammarly has raised $1 billion in non-dilutive financing from General Catalyst to expand its artificial intelligence (AI) offerings, aiming to grow into a comprehensive productivity platform, the companies said on Thursday. Grammarly, known for its popular writing assistant tool, plans to use the capital to fund sales and marketing costs and strategic acquisitions. It looks to use AI to build more communication-based productivity tools and even hosts third-party tools on its platform by leveraging access to its 40 million daily users. The investment, one of the biggest out of General Catalyst's Customer Value Fund (CVF), could help late-stage tech companies like Grammarly accelerate growth by using dedicated capital to acquire new customers. By reallocating funds typically tied up in sales and marketing, Grammarly can invest more in product development. In return, General Catalyst doesn't receive an equity stake in Grammarly, but will get a capped return linked to revenue generated through using this capital. This is structured as a percentage of the revenue generated from the fund being used in customer acquisition. Founded in 2009, Grammarly has an annual revenue exceeding $700 million and is profitable. In December, Grammarly appointed Shishir Mehrotra, previously CEO of the acquired productivity platform Coda, as its new leader, signaling a push into broader AI-powered workplace tools. "As Grammarly is going through a huge transformation of going from being a what is mostly known as a single-purpose agent to being an agent platform, it just felt very important for us to be able to bet big in our product development and in M&A as well as in our growth strategies," Mehrotra said in an interview. He added said the company has an eventual goal to go public, although no imminent plans. "I'm right now just focused on making sure we're innovating with new products, growing as fast as we can. But when we feel ready, we'll go public," Mehrotra added. The dedicated growth investment, if it pays off, could also benefit the valuation of Grammarly and General Catalyst's stake in the company, as it has also been an equity investor in Grammarly's series B funding in 2017. San Francisco-based Grammarly has raised over $550 million in venture capital, according to PitchBook. It was last valued at $13 billion in 2021. General Catalyst's Customer Value Fund operates apart from the firm's main venture funds with separate limited partners, and is not included in the newly raised $8 billion fundraising the firm announced. This approach is part of a strategic evolution for the tech investor, led by CEO Hemant Taneja, as it seeks to grow beyond the traditional venture capital model, including creating innovative funding mechanisms. Its customer acquisition fund has invested in nearly 50 companies, including Lemonade and Fivetran, as it leads on growth metrics to a more predictable path to returns. "Companies like Grammarly basically have a machine where they can invest dollars in sales and marketing and generate a very consistent return," said Pranav Singhvi, Managing Director at General Catalyst, "With this wave of AI, giving Grammarly the firepower to actually go and invest could land those customers beyond the 40 million."
Time of India
2 days ago
- Business
- Time of India
Grammarly secures $1 billion from General Catalyst to build AI productivity platform
Grammarly has raised $1 billion in non-dilutive financing from General Catalyst to expand its artificial intelligence (AI) offerings, aiming to grow into a comprehensive productivity platform, the companies said on Thursday. Grammarly, known for its popular writing assistant tool, plans to use the capital to fund sales and marketing costs and strategic acquisitions. It looks to use AI to build more communication-based productivity tools and even hosts third-party tools on its platform by leveraging access to its 40 million daily users. The investment, one of the biggest out of General Catalyst's Customer Value Fund (CVF), could help late-stage tech companies like Grammarly accelerate growth by using dedicated capital to acquire new customers. By reallocating funds typically tied up in sales and marketing, Grammarly can invest more in product development. In return, General Catalyst doesn't receive an equity stake in Grammarly, but will get a capped return linked to revenue generated through using this capital. This is structured as a percentage of the revenue generated from the fund being used in customer acquisition. Founded in 2009, Grammarly has an annual revenue exceeding $700 million and is profitable. In December, Grammarly appointed Shishir Mehrotra, previously CEO of the acquired productivity platform Coda, as its new leader, signaling a push into broader AI-powered workplace tools. Live Events "As Grammarly is going through a huge transformation of going from being a what is mostly known as a single-purpose agent to being an agent platform, it just felt very important for us to be able to bet big in our product development and in M&A as well as in our growth strategies," Mehrotra said in an interview. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories He added said the company has an eventual goal to go public, although no imminent plans. "I'm right now just focused on making sure we're innovating with new products, growing as fast as we can. But when we feel ready, we'll go public," Mehrotra added. The dedicated growth investment, if it pays off, could also benefit the valuation of Grammarly and General Catalyst's stake in the company, as it has also been an equity investor in Grammarly's series B funding in 2017. San Francisco-based Grammarly has raised over $550 million in venture capital, according to PitchBook. It was last valued at $13 billion in 2021. General Catalyst's Customer Value Fund operates apart from the firm's main venture funds with separate limited partners, and is not included in the newly raised $8 billion fundraising the firm announced. This approach is part of a strategic evolution for the tech investor, led by CEO Hemant Taneja, as it seeks to grow beyond the traditional venture capital model, including creating innovative funding mechanisms. Its customer acquisition fund has invested in nearly 50 companies, including Lemonade and Fivetran, as it leads on growth metrics to a more predictable path to returns. "Companies like Grammarly basically have a machine where they can invest dollars in sales and marketing and generate a very consistent return," said Pranav Singhvi, Managing Director at General Catalyst, "With this wave of AI, giving Grammarly the firepower to actually go and invest could land those customers beyond the 40 million."
Yahoo
2 days ago
- Business
- Yahoo
Exclusive: Empathy raises $72 million Series C to tackle the agonizing logistics of death
Ron Gura doesn't use the word 'death' every day. 'From a chemistry perspective, we tune out when we hear the word death, because death is our biggest denial. Nobody wants to contemplate their own self-mortality,' says Gura, a longtime entrepreneur who sold his previous company The Gifts Project to eBay. And yet Gura's latest startup is inextricably entwined with the dreaded D-word and the subject most people would rather not talk about. The common fear of mortality ('Nobody wants to admit that we're just ants playing around with fear and greed—yielding stuff, selling stuff, buying stuff, and ending up leaving, just like the others,' Gura tells me in a philosophical moment) is in fact one of the reasons Gura's startup, Empathy, may be so necessary. Empathy is all about using technology to make it easier for people to deal with the most difficult moments in life, such as the death of a loved one. While there are plenty of people and services to soothe the emotional difficulties of the moment, Empathy focuses on the logistical headaches. As anyone who has had to face the loss of a loved one can attest, death brings with it a ferocious maze of estate planning, probate processes, funeral expenses, and financial settlements—all suddenly dumped into the laps of grief-stricken and frequently unprepared family or friends. It's a durational agony: It takes the average person 15 months to tie off the various loose ends and logistical tasks of a deceased loved one's affairs, according to research conducted by Empathy and presented in a report bearing the coldly analytical title Cost of Dying. If the person handling the tasks is the executor of the estate, the number becomes 18 months, the report says. 'Our job is to make loss less hard for more people every day,' said Gura, who cofounded the company and serves as CEO. 'We think it's the largest consumer sector that is still untouched by innovation, specifically in software.' Founded in 2020, Empathy has raised a $72 million Series C, Fortune has exclusively learned. Adams Street Partners led the round, with participation from General Catalyst, Index Ventures, Entrée Capital, Brewer Lane Ventures, SemperVirens, Latitude, and LionTree. Additionally, in a striking move, Aflac, Allianz, Citi, Munich Re, MetLife, New York Life, Securian, and TIAA also invested in the company's Series C—all are also part of the just-unveiled Empathy Alliance, a coalition of organizations partnering with Empathy to improve technology around both death and crises in life. Insurer partnerships are key, said Joel Cutler, cofounder of General Catalyst, via email: 'Empathy is helping insurers build longer term, generational relationships, providing a better customer experience, and as such Empathy is building long-term, deep relationships with the insurers as well.' In recent years, Empathy has expanded throughout the U.S. and Canada, and is now part of the employee benefits programs for Fortune 500 companies like AT&T and Paramount. This approach could expand to other markets characterized by impossibly difficult moments in life, Gura suggested but declined to disclose specifics. Currently, Empathy's products are focused around loss support and legacy planning, with an app that guides families through bereavement tasks as AI-powered tools automate tasks around documents. 'Let machines do what machines do best—refilling information, calculating financials, setting reminders, and customizing very robust to-dos and care plans,' Gura told Fortune. 'You shouldn't be calling Verizon to explain you don't have the passwords and the credentials. You shouldn't worry if your funeral director is trying to rip you off. You shouldn't feel alone at 2 AM.' There are many obvious questions here. Where does tech belong in a grieving process—and where is it invasive? What prevents this from becoming a dystopian nightmare? In part, it's that matter of tech doing what it does best, so humans can focus on what's purely human. And when it comes to data privacy, Gura said that Empathy has taken particular care: The company doesn't share individual personal information with clients, only provides aggregated demographic information, and personal emotional details remain strictly confidential, he told Fortune. And Empathy gets at something true: When a loved one dies, people don't know what to do, emotionally or logistically. No one knows the right thing to say. Tertiary people and problems dominate your days. You spend a lot of time on phone calls, informing people—and still receive more of those phone calls anyway. You worry about funeral costs. You get flowers in the mail, that soon wilt and die themselves. Condolences aren't helpful, sometimes nothing is. But genuine affection and a casserole dish of lasagna come close. Sometimes, the most valuable help is simple logistical assistance. Gura, who knows something about loss, is building a business around the gone and the living—because to think about death is, ultimately, to think about life. Your own, and others. 'If you imagine yourself right now, God forbid, on your last day,' said Gura. 'I'm 90, I'm surrounded by my daughters, my grandkids, and my wife. The house is tidy and nice. I had a great meal—lobster rigatoni, and we had wine. I didn't wake up from my nap. Perfect. Now, what happens the second after I'm gone?' See you tomorrow, Allie GarfinkleX: @agarfinksEmail: a deal for the Term Sheet newsletter here. Nina Ajemian curated the deals section of today's newsletter. Subscribe here. This story was originally featured on
TechCrunch
2 days ago
- Business
- TechCrunch
Grammarly secures $1B in non-dilutive funding from General Catalyst
Grammarly has secured a $1 billion commitment from General Catalyst. The 14-year-old writing assistant startup will use the new funds for its sales and marketing efforts, freeing up existing capital to make strategic acquisitions. Unlike a traditional venture round, General Catalyst will not receive an equity stake in the company in return for the investment. Instead, Grammarly will repay the capital along with a fixed, capped percentage of revenue it generates from the use of General Catalyst's funds. The investment comes from General Catalyst's Customer Value Fund (CVF), a capital pool that helps late-stage startups with predictable revenue streams deploy new funding specifically to growing their businesses. CVF's alternative financing strategy essentially 'lends' capital that is secured by a company's recurring revenue. For companies like Grammarly, this form of financing is advantageous because it's non-dilutive and does not reset the company's valuation. Grammarly was valued at $13 billion in 2021, during the peak of the ZIRP era. However, the company's valuation in today's market is significantly lower, according to an investor in the company who asked to remain anonymous. Grammarly didn't immediately respond to a request for comment. In December, Grammarly acquired productivity startup Coda and appointed its CEO, Shishir Mehrotra, to lead Grammarly. The company, which is evolving into an AI productivity tool following the acquisition, has annual revenue of over $700 million. General Catalyst's Customer Value Fund has provided funding to nearly 50 companies, including insurtech Lemonade and telehealth platform Ro. CVF maintains its own distinct limited partners and was not included in the firm's recent $8 billion capital raise. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW General Catalyst head honcho Hemant Taneja and Pranav Singhvi, co-head of CVF, talked with TechCrunch in greater length about the group's specialized financing strategy last fall.
