The Grammarly funding is a testament to the robust health of the entire American market for promising startups.
Grammarly Inc, a software company that provides cross-platform cloud-based writing assistants says it has raised $200 million in a new funding round. Per a CNBC report, the funding round enjoined participation from investors including Baillie Gifford, General Catalyst, funds, as well as accounts managed by BlackRock Inc (NYSE: BLK) amongst other investors.
Grammarly operates in a very unique business niche with little or no competition. While the duo of Microsoft Corporation (NASDAQ: MSFT) and Google LLC (NASDAQ: GOOGL) offer some form of text-checking services with a number of smaller outfits. When the full services of Grammarly are put under review, the platform has not much competition as such.
Grammarly helps people write better English as it checks errors in grammar, punctuation, and style. The software offers both free and paid versions and while the former lets users correct spelling errors and unnecessary words, the latter offers more advanced features. Users paying for Grammarly Premium gain access to the software’s plagiarism checker and provide Artificial Intelligence (AI) generated recommendations. The more advanced business and enterprise tiers assist users to adhere to a common brand style.
Founded in 2009 by Dmytro Lider, Max Lytvyn, and Alex Shevchenko, Grammarly has established itself as a formidable software that is now a primary choice of students, writers, and other professionals around the world. Today, the company said as many as 30 million make use of Grammarly on a daily basis.
“We’re best in class there,” said CEO Brad Hoover. “That’s also because we’ve been focusing on this for so long and built up quite a bit of infrastructure under the hood to enable us to return these broad, precise, explainable results.”
While the spell-check provisions on platforms like Microsoft’s Editor feature for browser extensions and Office applications have support for more than 20 languages, Grammarly only supports English languages and hopes to maintain this mono-language support for the foreseeable future.
Grammarly Funding: A Sign of Broad Industry Health
It is not uncommon for emerging blockchain and digital currency-based platforms to announce venture capital equity backing, as many people factor in the futuristic potentials of the cryptocurrencies and the industry they embody. The Grammarly funding is a testament to the robust health of the entire American market for promising startups.
Per the CNBC report, a number of these startups are securing funding at an impressive rate. Notion, a start-up that brandishes a unique software that enables people to create collaborative documents, said in a statement last month it had secured a $10 billion valuation, and Airtable per a Forbes report earlier this year is valued at $5.8 billion. The San Francisco start-up develops a next-generation spreadsheet software that rivals Microsoft Excel and Google Spreadsheet.
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