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DeepL, a competitor to Google Translate, reaches a valuation of $2 billion

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DeepL, an artificial intelligence-powered translation platform, has announced that it successfully raised $300 million in fresh funding. This significant investment, led by venture capital firm Index Ventures, has propelled DeepL’s valuation to an impressive $2 billion. In addition to Index Ventures, new investors such as ICONIQ Growth and Teachers’ Venture Growth joined the funding round, while existing investors like IVP, Atomico, and WiL also continued their support.

The latest valuation of $2 billion marks a doubling of DeepL’s worth since its previous funding round in January 2023. Founded in 2017 by CEO Jaroslaw “Jarek” Kutylowski, DeepL stands as a direct competitor to the well-known translation service provided by Google Translate.

With the recent investment news, Kutylowski expressed his confidence in DeepL’s valuation, describing it as “pretty moderate” and emphasizing the company’s strategic approach to growth. He highlighted that the funding included a mix of primary investments into the business and a secondary share sale by early investors like b2venture, a Swiss venture fund.

DeepL presently offers translation services across 32 different languages, including popular options like English, German, French, Spanish, Italian, Polish, and Dutch. Looking ahead, the company is focused on expanding its presence in key markets such as the U.S. and enhancing its research and development initiatives. The U.S. has emerged as DeepL’s third-largest market, with the company opening its first U.S. office earlier this year.

Furthermore, DeepL aims to incorporate support for additional Asian languages in the coming year, recognizing Asia as a vital market segment. Kutylowski underlined the company’s long-term vision of evolving into a productivity tool tailored for enterprise clients, streamlining language-related tasks within corporate communication.

Regarding DeepL’s enterprise efforts, the company has seen success in selling its services to prominent organizations like Zendesk, Nikkei, Coursera, and Deutsche Bahn. Kutylowski noted the importance of catering to the needs of larger corporate clients and providing them with language solutions that enhance their internal communications.

In emphasizing the significance of the latest funding round, Kutylowski reiterated his commitment to maintaining a balanced and sensible approach to managing capital. He acknowledged the unique challenges and opportunities present in private funding rounds, alluding to the need for prudent decision-making despite the lure of potentially higher multiples in later-stage investments.

As DeepL continues to evolve and expand its offerings, the company remains dedicated to its mission of empowering users with efficient and accurate language translation tools. The successful fundraising and increased valuation stand as testament to the growing demand for advanced AI-powered solutions in the global language services industry.

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