DeepL, the AI-based language translator, raises over $100M at a $1B+ valuation

From TechCrunch:

Artificial intelligence startups, and (thanks to GPT and OpenAI) specifically those helping humans communicate with each other, are commanding a lot of interest from investors, and today the latest of these is announcing a big round of funding. DeepL, a startup that provides instant translation-as-a-service both to businesses and to individuals — competing with Google, Bing and other online tools — has confirmed a fundraise at a €1 billion valuation (just over $1 billion at today’s rates).

Cologne, Germany-based DeepL is not disclosing the full amount that it’s raised — it doesn’t want to focus on this aspect, CEO and founder Jaroslaw Kutylowski said in an interview — but as we were working on this story we heard a range of figures. At one end, an investor that was pitched on the funding told TechCrunch that DeepL was aiming to raise $125 million. At the other end, a report with a rumor about the funding from back in November said the amount was around $100 million. The funding closed earlier this month.

The startup is also not confirming or disclosing other financials, but the investor source said that the $1 billion valuation was based on a 20x multiple of DeepL’s annual run rate, which was at $50 million at the end of last year. In the current fundraising climate, this is a pretty bullish multiple, but it speaks to the company’s growth, which the investor noted is currently at 100%, and the fact that DeepL’s breaking even and close to being profitable.

What is more definitive is the list of investors: DeepL said that new backer IVP was leading the round, with Bessemer Venture Partners, Atomico and WiL also participating. Previous backers in the company also include Benchmark and btov.

DeepL primarily provides translation as a service to businesses rather than individuals, and its forte up to now has been working primarily with smaller and medium organizations.

Link to the rest at TechCrunch