Funding round
Perplexity Series B
Perplexity, which works in AI-Powered knowledge base services in San Francisco, raised $74M in a Series B round announced on 4 Jan 2024, led by Institutional Venture Partners, at a $520M post-money valuation. 8 firms took part. It is Perplexity's third venture round on record; the one before was a Series A in Mar 2023.
$74M
Amount raised
$520M
Post-money valuation
$446M pre-money
8
Investors
1 lead
14%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Perplexity at $520M after the new money. The $74M bought investors about 14% of the company. It came 10 months after Perplexity's Series A. It is 1.7% of the $4.35B Perplexity has raised in the venture rounds on record. Perplexity raised again 3 months later: a Growth round of $250M in Apr 2024, at $2.50B post-money.
Perplexity's funding rounds
Perplexity has 9 venture rounds on record. This one is highlighted.
- Seed 1 Sep 2022 $3.1M
- Series A 28 Mar 2023, led by New Enterprise Associates $26M
- Series B this round 4 Jan 2024, led by Institutional Venture Partners $74M$520M post-money
- Growth 23 Apr 2024 $250M$2.50B post-money
- Growth 5 Nov 2024, led by Institutional Venture Partners $500M$9.00B post-money
- Series E 14 May 2025, led by Accel $500M$14.00B post-money
- Growth 1 Sep 2025 $200M$20.00B post-money
- Series F 1 Dec 2025 $500M$20.00B post-money
- Growth 1 Jan 2026 $2.30B
Investors
Who put money in
Institutional Venture Partners led the round with 7 other firms.
Lead investor
- Institutional Venture Partners backs 109 venture-backed companies new investor
Also in the round
- New Enterprise Associates backs 286 venture-backed companies new investor
- Databricks Ventures new investor
- Nvidia new investor
- Bezos Expeditions Fund new investor
- Bessemer Venture Partners backs 412 venture-backed companies new investor
- backs 3 venture-backed companies new investor
- backs 66 venture-backed companies new investor
Joined the board: Cack Wilhelm (IVP).
Use of proceeds
What the money is for
According to the announcement, the money goes to hiring, product development, scaling operations and working capital.
- Hiring
- Product development
- Scaling operations
- Working capital
Comparable rounds
How it compares
558 Series B rounds in Tech Companies within a year either side disclosed an amount; the median was $26M, and this round was 2.8 times the median. The closest in time, other companies' Series B rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Tech Companies | 23 Jan 2024 | $87M | not disclosed | Energize Capital and GreenPoint |
| ElevenLabs Tech Companies | 22 Jan 2024 | $80M | $1.10B | Andreessen Horowitz and Nat Friedman |
| Tech Companies | 11 Jan 2024 | $73M | not disclosed | Battery Ventures |
| Tech Companies | 1 Jan 2024 | $65M | $500M | Kleiner Perkins |
| Luma AI Tech Companies | 9 Jan 2024 | $43M | $200M | Andreessen Horowitz |
| Tech Companies | 31 Jan 2024 | $43M | not disclosed | New Enterprise Associates |
| Tech Companies | 11 Jan 2024 | $42M | not disclosed | not named |
| Tech Companies | 19 Jan 2024 | $40M | not disclosed | not named |
Sources
Where this comes from
Reported by 5 sources.
Questions
Frequently asked
How much did Perplexity raise in its Series B round?
Perplexity raised $74M in its Series B round, announced in Jan 2024.
Who led Perplexity's Series B round?
Institutional Venture Partners led it, with New Enterprise Associates, Databricks Ventures, Nvidia, Bezos Expeditions Fund and Bessemer Venture Partners and 2 more.
What was Perplexity's valuation at the Series B round?
$520M post-money ($446M pre-money).
How does it compare with other Series B rounds in Tech Companies?
558 Series B rounds in Tech Companies within a year either side disclosed an amount; the median was $26M, and this round was 2.8 times the median.
Did Perplexity raise again after this round?
Yes: a Growth round in Apr 2024 of $250M at $2.50B post-money.