Deepgram Secures $130 Million in Series C Funding as Voice AI Demand Surges

In recent years, the demand for voice AI technology in sales, marketing, customer support, and consumer applications has skyrocketed. This surge has attracted significant attention from investors, leading to Deepgram announcing a successful $130 million Series C funding round, spearheaded by AVP and valuing the company at $1.3 billion.

Investors Back Deepgram’s Growth

The funding round attracted support from existing investors including Alkeon, In-Q-Tel, Madrona, Tiger, Wing, and Y Combinator, alongside new contributors like Alumni Ventures, Columbia University, Princeville Capital, Twilio, and SAP. To date, Deepgram has raised over $215 million in total funding.

Continued Trend in Voice AI Funding

Deepgram’s latest funding reflects a broader trend in the voice AI sector, which saw significant funding rounds last year, including Sesame’s $250 million Series B, ElevenLab’s $180 million Series C, and Gradium’s $70 million seed round.

Investor Insights from AVP

Elizabeth de Saint-Aignan, a partner at AVP, shared her observations with TechCrunch, stating that discussions with enterprises revealed a frequent interest in voice AI technology. This prompted a deeper investigation into companies operating in the voice AI space.

The Advantages of Voice AI in Customer Interaction

Saint-Aignan emphasized that voice AI has the potential to enhance customer interactions while simultaneously reducing operational costs for businesses. Deepgram is positioned to play a vital role in this transformation.

Deepgram’s Innovative Offerings

Deepgram provides an extensive suite of models for text-to-speech and speech-to-text functionalities, as well as platforms and APIs for seamless conversational speech recognition and low-latency interruption handling. Over 1,300 organizations, including Granola, Vapi, and Twilio, leverage Deepgram’s advanced voice AI technologies.

CEO Insights on Fundraising Strategy

Deepgram’s CEO, Scott Stephenson, noted that the company is already cash-flow positive and did not actively seek funding. However, he recognized the growing demand for voice AI and the opportunity to accelerate growth with timely investments.

Strategic Objectives with New Funding

The funding will facilitate Deepgram’s expansion into international markets, enhance support for multiple languages, and focus on serving the restaurant industry through voice AI solutions. To this end, the company has acquired Y-Combinator-backed Ofone, which offers a voice AI-powered solution designed specifically for quick-service restaurants, boasting over 93% accuracy in order taking.

Future of Voice AI in the Restaurant Sector

Stephenson expressed enthusiasm for leveraging voice AI in food ordering, suggesting it could transform customer experiences in a sector where consumers may have had mixed interactions with technology in the past.

Investor Interest and Market Growth Projections

Deepgram’s acquisition of Ofone highlights the ongoing investor interest in the voice AI sector, following Presto’s acquisition of $10 million in funding.

According to analyst reports, the voice AI market is projected to expand by over 30% annually, potentially reaching a valuation of $14 to $20 billion by 2030. This growth trajectory positions voice AI providers like Deepgram to become core components for both enterprises and startups aiming to develop innovative voice solutions.