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DeepL Secures $300 Million in Funding, Valuation Soars to $2 Billion Amidst AI Industry Boom

DeepL, an AI-powered translation platform, announced on Wednesday that it secured $300 million in new funding, demonstrating robust investor interest in the AI industry.

The investment round, led by venture capital firm Index Ventures, elevated DeepL’s valuation to $2 billion.

New contributors ICONIQ Growth and Teachers’ Venture Growth joined the round, alongside existing investors IVP, Atomico, and WiL.

DeepL's market value has now doubled from January 2023, when the company raised $100 million at a $1 billion valuation. Founded in 2017 by CEO Jaroslaw “Jarek” Kutylowski, DeepL operates in a competitive field with giants like Google Translate.

In a CNBC interview following the funding announcement, Kutylowski expressed his optimism about the company's valuation. "I am super confident about the firm’s $2 billion valuation tag and felt it was pretty moderate," he said.

"Obviously we are at the private stage," Kutylowski explained during the phone interview. "Multiples will be larger than [they are] for publicly traded companies at the later stage."

"Nevertheless, I’m trying to keep it all sensible," he added.

Kutylowski also revealed that the fundraising included primary investments and a secondary share sale by some early backers, such as b2venture, a Swiss venture fund. "That’s down to the fact we don’t need those extra levels of capital," he commented. "At the same time, we want to have this very strong backing from these late-stage folks."

DeepL supports translations between 32 languages, including English, German, French, Spanish, Italian, Polish, and Dutch. The company’s focus moving forward is on expansion into strategic markets like the U.S., where it recently established its first office, and on enhancing its research and development efforts.

Kutylowski also highlighted plans to support more Asian languages and noted the significance of Asia as "a very strong market for us."

DeepL’s ambition is to evolve into a more integral productivity tool for enterprises, aiming to alleviate the burden of manual communication tasks. "We’re really expanding our product toward being able to support these bigger enterprise customers," Kutylowski stated.

"For us, the vision here is really to be able to create this kind of language system for our customers. They have this control of the language that their employees are speaking … [and] sending out lists of emails to their employees."

DeepL has intensified its push into the enterprise sector, now serving notable clients like Zendesk, Nikkei, Coursera, and Deutsche Bahn.


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