Perplexity, a revolutionary AI search engine startup, is making waves in the tech industry with its latest fundraising efforts. Sources close to the company have revealed that Perplexity is currently raising over $250 million at a staggering valuation of between $2.5 billion and $3 billion.
This significant investment comes hot on the heels of two previous successful fundraises. In January, the company raised nearly $74 million at a valuation of $540 million, a substantial increase from its $121 million valuation in April 2023. Just a few months later, in March, Perplexity closed a $56 million round at a valuation of $1 billion, which was quietly publicized until recently.
According to insiders, Perplexity is not stopping there. The company is reportedly seeking additional funding to capitalize on its growing momentum and attention in the market. Existing backers, including NEA and IVP, are among those looking to invest in this larger round. However, their participation may depend on Perplexity’s willingness to work with existing investors and expand its cap table to bring in new investors.
Perplexity’s innovative search engine utilizes generative AI and a chatbot-style interface to provide users with accurate and comprehensive results. By incorporating a variety of large language models (LLMs), the platform offers a unique and rich search experience. This approach sets Perplexity apart from other companies in the generative AI space, which are often focused on building multi-purpose large language models.
The company’s investor list is impressive, with 46 names, including Sequoia, Bessemer, Kindred, Nvidia, Databricks, Bezos Expeditions, Jeff Bezos, Meta’s chief AI scientist Yann LeCun, and many others. Perplexity’s focus on search and its innovative approach have made it an attractive investment opportunity for these prominent investors.
Perplexity offers its tools on both free and enterprise, paid tiers. The company has processed an impressive 75 million queries this year and boasts an annual recurring revenue (ARR) of $20 million, according to Bloomberg.
The rapid fundraising efforts by Perplexity are reminiscent of other successful startups that have raised money on an ongoing basis during periods of rapid growth and significant attention. With the current zeitgeist moment in AI, Perplexity is well-positioned to continue its upward trajectory.
