With so many startups now offering AI bots that can do everything from listening to and transcribing meetings to taking notes and surfacing insights, companies in this space are looking to add additional feature sets. They need to differentiate themselves by offering integration and integration.
One such company, Read AI, is trying to do just that by integrating its AI bot with email, Slack, and enterprise tools like Hubspot, Jira, and Confluence. And to accelerate product development, the company announced Monday that it has raised $50 million in a Series B funding round led by Smash Capital. Notably, this new round comes just six months after the startup raised $21 million in Series A.
Co-founder David Sim told TechCrunch that the company has experienced significant customer growth since the startup's Series A earlier this year, with more than 100,000 new accounts created since then. The company said it is looking to capitalize on that growth.
“In less than six months, we doubled our sign-ups, doubled our active users, and [monthly recurring revenue]surpassing even the most aggressive predictions. We are capitalizing on this momentum and are now raising funds,” he said.
Sim declined to disclose Reed AI's valuation, but said the valuation has increased in line with its growth.
Brad Twohig, co-founder and managing partner at Smash Capital, said he often looks for product-driven growth companies when investing, and Reed fit that mold well.
“I love finding businesses in spaces that accommodate large groups and at the same time have an enterprise element,” he said.
Product evolution
Read AI started supporting integration with email, messaging, and meeting apps earlier this year, and today we're releasing a Chrome extension that lets you view schedules, meeting reports, quick add options to meetings, and insights from meetings. did.
Use this extension to highlight important points in long email threads and draft emails that take into account the context of previous emails, messages, and meetings. It also highlights quick notes from meetings or Slack messages on the same topic.
Email clients from providers such as Shortwave and Superhuman offer similar functionality.
Image credit: Read AI
Read AI offers a free Chrome extension. Sim pointed out that the new funding is another reason to develop, expand, and offer products like this at no cost.
“No matter where you work, we take that content and provide summaries and recommendations. It's a bigger opportunity, but there's a bigger cost center associated with it. We… We're focused on growing that market while maintaining our lead on the meeting minutes side,” Sim said.
Image credit: Read AI
Smash Capital's Twohig feels that meeting transcription services are becoming a commodity, but Read AI's approach to deploying AI bots everywhere could turn it into a viable business. That's what I think.
“We encountered Read AI as an assistant who would show up to meetings and take notes. But when we spoke to David, we understood the broader vision and concept of having a co-pilot everywhere. This tool helps you follow your daily tasks, keep useful records, and become a better teammate.
Read AI currently has 40 employees and aims to grow to 100 by the end of Q1 2025.
Existing investors Madrona and Goodwater Capital also participated in the Series B round.