Total amount raised
$240 Millions
Latest funding date
1/1/2023
Location
SoundHound has successfully raised significant funding across multiple rounds, securing backing from a diverse group of investors. The company specializes in providing advanced voice AI solutions for various industries.
Continue reading to delve into the details of SoundHound's funding journey and the key investors supporting its innovative technology.
What Is SoundHound?
SoundHound, founded on September 1, 2005, in Santa Clara, California, is a pioneer in voice AI technology. The company was established by James Hom, Keyvan Mohajer, and Majid Emami.
Specializing in voice-enabled AI solutions, SoundHound offers products that enhance user engagement through natural voice interactions across various industries. Their technology powers conversational agents for automotive, healthcare, finance, and more.
With a workforce of 501-1000 employees, SoundHound continues to innovate, providing brands with the tools to create customized conversational experiences and access valuable data and analytics.
How Much Funding Has SoundHound Raised?
- Venture Round
- Amount Raised: $4M
- Date: August 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and enhance their voice AI technology.
- Series B
- Amount Raised: $7M
- Date: May 2008
- Lead Investors: Walden Venture Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their product offerings and market reach.
- Series C
- Amount Raised: $24M
- Date: October 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and invest in R&D.
- Series D
- Amount Raised: $75M
- Date: January 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand into new markets.
- Corporate Round
- Amount Raised: $100M
- Date: May 2018
- Lead Investors: Tencent
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen strategic partnerships and enhance product development.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: March 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Post-IPO Equity
- Amount Raised: $111M
- Date: April 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support public market entry and expand business operations.
- Post-IPO Debt
- Amount Raised: Not publicly disclosed
- Date: June 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To refinance existing debt and improve financial stability.
- Post-IPO Equity
- Amount Raised: $25M
- Date: January 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund ongoing innovation and market expansion.
- Post-IPO Debt
- Amount Raised: $100M
- Date: April 2023
- Lead Investors: Atlas Credit Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To refinance existing debt and support growth plans.
SoundHound has raised a total of $446M. The current valuation is Not publicly disclosed.
Key Investors
- Atlas Credit Partners
- Details: Atlas Credit Partners is a Houston-based asset management firm specializing in credit investing. They provide minimally-dilutive capital solutions to middle-market growth companies.
- Investment Focus Areas: Credit investing, middle-market growth companies, strategic financing.
- Notable Investments: Committed over $750 million in 2022 to businesses in transition.
- Tencent
- Details: Tencent is a Chinese multinational conglomerate holding company, known for its various internet-related services and products. It is one of the world's largest technology companies.
- Investment Focus Areas: Social media, gaming, fintech, artificial intelligence, cloud computing.
- Notable Investments: Epic Games, Tesla, Spotify.
- Walden Venture Capital
- Details: Walden Venture Capital is a venture capital firm based in San Francisco, focusing on early-stage investments. They have a history of investing in technology and digital media companies.
- Investment Focus Areas: Technology, digital media, consumer internet.
- Notable Investments: Pandora, SoundHound, Nanosys.
- Union Square Advisors LLC
- Details: Union Square Advisors LLC is a technology-focused investment bank. They provide strategic advisory services to technology companies.
- Investment Focus Areas: Technology, strategic advisory, mergers and acquisitions.
- Notable Investments: Advised on transactions for companies like LinkedIn, Twitter, and Dropbox.
- Cantor Fitzgerald & Co
- Details: Cantor Fitzgerald & Co is a global financial services firm. They offer a wide range of services including investment banking, asset management, and brokerage.
- Investment Focus Areas: Financial services, investment banking, asset management.
- Notable Investments: Advised on transactions for companies like Uber, WeWork, and Airbnb.
What's Next for SoundHound?
SoundHound stands at the cusp of significant growth opportunities, fueled by a $100 million strategic financing from Atlas Credit Partners. This capital injection, with the potential to access an additional $25 million, positions the company to expand its voice AI platform across various industries, including automotive, smart devices, and customer service. The increasing adoption of conversational AI and advances in Generative AI and Large Language Models present a vast market for SoundHound's innovative solutions.
Future fundraising opportunities appear promising, given the company's strengthened balance sheet and ongoing technological advancements. However, SoundHound must navigate challenges such as intense competition, rapid technological changes, and market uncertainties. Ensuring scalability and maintaining a competitive edge will be crucial as the company leverages its new funds to drive innovation and market expansion.
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