- About 30 million people use Grammarly every day.
- The start-up doesn’t see any direct competitors, although Microsoft offers some similar capabilities.
Grammarly, a start-up whose software addresses issues people write into their Web apps and other programs, said Wednesday it will raise $200 million in new funding after taking in new funding from Bailey Gifford, General Catalyst, Funds & Accounts. Values $13 billion. BlackRock and other investors.
The support shows that despite the dominance of cash-rich companies like Google and Microsoft in the market, investors are willing to pay a premium for a specific type of productivity software.
Dharana, a start-up whose software enables people to create collaborative documents, said Statement Last month it raised funds at a valuation of $10 billion, and Forbes Airtable, a start-up developing next-generation spreadsheet software, reported in March that it was worth about $5.8 billion.
Grammarly’s free service picks up misspellings, grammatical mistakes, and unnecessary words. A paid version provides additional types of recommendations and detects plagiarism. Business and enterprise levels help employees stay consistent with style guides and a common brand voice. About 30 million people use Grammarly every day.
Google Docs and Microsoft Word can do something that Grammarly can. Examples of plagiarism can be found in services such as Turnitin owned by Advance Publications. But given all of its capabilities, Grammarly doesn’t have a single direct competitor, CEO Brad Hoover told Businesshala in an interview.
The start-up benchmarks to see how it is performing on grammatical response relative to the alternatives.
“We’re the best in class out there,” Hoover said. “It’s also because we’ve been focused on this for so long and have built quite a bit of infrastructure under the hood so that we can return these comprehensive, accurate, interpretable results.”
But grammar has remained focused on English, and it will continue to be, Hoover said. Meanwhile, Microsoft’s editor feature for browser extensions and Office applications supports more than 20 languages.
Grammarly was started in 2009 by Dmytro Lider, Max Lytvyn and Alex Shevchenko. Today the company has over 600 employees, with offices in San Francisco; Vancouver, British Columbia; and the Ukrainian city of Kiev.
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