DeepL, an AI-powered translation platform, announced on May 22, 2024, that it has secured $300 million in new funding. This significant investment underscores continued investor confidence in the AI sector. Led by venture capital firm Index Ventures, the deal has propelled DeepL's valuation to $2 billion.
New investors ICONIQ Growth and Teachers’ Venture Growth joined the funding round, alongside existing investors IVP, Atomico, and WiL. The current valuation represents a doubling of DeepL’s worth since its previous funding round in January 2023, when it raised $100 million at a $1 billion valuation.
Established in 2017 under the leadership of CEO Jaroslaw "Jarek" Kutylowski, DeepL is a prominent rival to Google Translate, offering translations between 32 languages, including English, German, French, Spanish, Italian, Polish, and Dutch. Kutylowski, speaking with CNBC on the day of the announcement, expressed confidence in the firm’s new valuation, describing it as “pretty moderate” given the company's private status and growth potential.
The recent funding round included both primary investments into DeepL and a secondary share sale by some early investors, including b2venture, a Swiss venture fund. Kutylowski emphasized that the company does not require excessive capital but aims to maintain strong backing from late-stage investors.
DeepL is focusing on expanding its presence in key strategic markets, particularly the United States, which has become its third-largest market. The company opened its first U.S. office in January 2024 and plans to continue its growth there. Additionally, DeepL intends to enhance its support for more Asian languages over the next year, recognizing Asia as a robust market for its services.
The company’s long-term vision involves evolving into a productivity tool for enterprise clients, helping to streamline and automate communication tasks. Kutylowski highlighted DeepL’s efforts to cater to large enterprise customers, enabling them to control and manage their language use in internal and external communications. The platform's expansion into the enterprise sector is reflected in its client roster, which includes prominent companies such as Zendesk, Nikkei, Coursera, and Deutsche Bahn.
DeepL’s strategic focus on research and development will underpin its continued innovation in the AI translation field. By enhancing its technological capabilities and expanding its market reach, DeepL aims to solidify its position as a leader in the AI-powered translation industry.
The substantial funding and valuation growth signal a strong future for DeepL, as it continues to leverage artificial intelligence to transform language translation and productivity tools for global businesses.
