Latest news with #Grammarly
Yahoo
a day 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."
TechCrunch
3 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.
Mail & Guardian
3 days ago
- Business
- Mail & Guardian
Super tool or shortcut? How artificial intelligence is forcing a rethink of business education
If institutions evolve and embrace AI not as a threat but as a tool, business schools can future-proof graduates to prepare them for a fast-evolving world. Not too long ago, artificial intelligence (AI) was a futuristic buzzword in business schools; now it's an ever-present classmate that cannot be ignored. From streamlining assignments to sparking debate on the future of education, tools such as ChatGPT, Grammarly, Notion AI and Perplexity are reshaping how students learn, how faculties teach and how qualifications are assessed. And although ChatGPT is like a brainstorming partner that never sleeps, educators warn that it should never be a substitute for human intelligence. Creative thinking and critical reasoning are more important now than ever before. Could ChatGPT pass the MBA? A 'ChatGPT3 does an amazing job at basic operations management and case-based analysis,' Terwiesch writes. 'But it stumbles on surprisingly simple maths and lacks the depth for advanced, multi-variable problems'. It could, however, adapt and improve when given hints. This, he says, highlights the growing importance of 'human-in-the-loop' learning, a process where real people are actively involved in the development, training and operations of AI systems, instead of simply relying on fully automated systems. Integrating human expertise helps to improve the accuracy, reliability and adaptability of artificial intelligence, especially in situations where AI might struggle with context, bias or hidden errors. AI literacy: A new business essential For tomorrow's industry leaders, AI literacy must be a core competency. Knowing how to prompt effectively, cross-check AI-generated insights and judge credibility is becoming just as crucial as interpreting financial statements and crafting business strategy. 'Managerial decision-making involves evaluating polished but often flawed proposals,' Terwiesch explains. 'ChatGPT is the perfect stand-in for the overconfident consultant — it gives you a great-looking answer that might still be wrong. This is excellent training for the boardroom.' In this way, AI is not replacing business education — it's enhancing it, by sharpening students' ability to evaluate, challenge, and apply. The assessment dilemma This disruption, however, raises pressing ethical and pedagogical concerns. If a chatbot can write a competent operations report or solve a basic inventory problem, what exactly are students being assessed on? In his analysis, Terwiesch warns against complacency. 'Allowing ChatGPT during foundational exams is like letting students call a moderately competent friend to take the test for them. We need new policies — and smarter assessments.' That's why many South African institutions are pivoting to in-person presentations, real-time case discussions and collaborative simulations, which AI can support — but not complete alone. The real value of the MBA in an AI world If institutions evolve and embrace AI not as a threat but as a tool for lifelong learning, business schools can raise the bar for what constitutes real understanding and future-proof graduates to prepare them for a fast-evolving world. Although AI excels at synthesising what already exists, it lacks vision — the ability to challenge assumptions, build strategy under uncertainty or imagine entirely new markets. This is where humans and their business qualifications come in. 'ChatGPT will always move from 1 to n. The best students must learn to go from 0 to 1,' he writes, referencing Peter Thiel's startup philosophy which centres on the idea of creating something entirely new rather than merely improving existing offerings to achieve value creation. 'Our job as educators is to reward that kind of thinking.' Whether the AI is an assistant, adviser or adversary depends on how well students are taught to use it, according to Terwiesch. 'Not just to find the right answers, but to ask better questions.'
