Business services startup Instabase announced the attraction of investment funds in the amount of $45 million following the results of the next round of financing.
As a result of receiving new financing from this company, its value doubled, reaching $2 billion. The startup was able to attract investments thanks to the successful experience of using generative artificial intelligence tools that are present in its line of corporate products.
The funding round was led by an existing investor, Tribe Capital. Tribe co-founder Arjun Seti will take an observer seat on the startup’s board of directors. Andreessen Horowitz, New Enterprise Associates, and Spark Capital also participated in the financing round.
This week Instabase for the first time reported on the practice of using tools that were created on the basis of large language models OpenAI and are branched artificial intelligence systems that absorb huge amounts of information. The startup thus joins companies seeking to improve their products with the help of Sam Altman’s firm’s tools. These companies include Stripe payment processor and Duolingo language trainer.,
OpenAI managed to attract investments totaling more than $10 billion. Currently, the company is creating products with generative artificial intelligence that respond to requests with text messages and images.
Instabase stated that OpenAI language models will help to develop the business more actively and efficiently. The company also informs that this toolkit provides customers with the opportunity to create customized applications and workflows, including identity verification and invoice processing.
After updating the Instabase product line, it will be possible to create applications based on artificial intelligence without first preparing a model for each type of document.
Four years ago, the company was able to attract investment funds in the amount of $105 million. The last round of financing took place during an adverse period for startups, one of the main negative features of which are difficulties with venture support. Venture capitalists have significantly reduced the pace and volume of investment compared to the boom in the financing of start-up firms recorded during the coronavirus pandemic.
Anant Bhardwaj, Chief Executive Officer of Instabase, said that currently, financial support from investors is significantly less than two years ago. In his opinion, if funding was raised in 2021, the startup’s value could reach $4 billion. At the same time, he noted that the lower cost of the company puts less pressure on it. By the end of 2023, Instabase plans to receive revenue of more than $50 million.
Currently, the startup is striving for financial discipline. Within this concept, the company is focused on making a profit, not on business growth. Bhardwaj says that the current technological climate is not conducive not only to attracting investments in large volumes but also to concluding new contracts with customers. He also noted that his startup continues to expand, albeit more slowly. Last year, the company’s business profit doubled. By the end of 2021, this indicator showed a triple increase.
As a result of the implementation of OpenAI tools, Instabase clients will be able to upload documents and request various key data fragments in an interactive mode.
Bhardwaj, who writes poetry in Hindi in his spare time, also used the startup’s toolkit to translate poetic works from other languages, such as Arabic, and to create sketches of English translations of his poems. According to him, the Instabase Converse tool understands the meaning of literary creation and recreates it in a full-fledged form in another language instead of a mechanical literal translation to the detriment of the ideological and thematic component, which is a disadvantage of other services for translating texts.
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