Total amount raised
$240 Million
Latest funding date
1/1/2023
Location
SoundHound has successfully raised funds through 11 rounds, with the latest being a Post-IPO Debt round led by Atlas Credit Partners. The company is backed by a total of 36 investors, including recent contributors like Arrowshare Ventures.
SoundHound's journey in the voice AI industry is marked by significant financial milestones and a diverse group of investors. Keep reading to explore the intricacies of SoundHound's fundraising journey and the investors backing this innovative platform.
What Is SoundHound?
SoundHound AI is a leading innovator in conversational AI technologies, providing voice-enabled AI solutions that automate interactions across various industries. The company is headquartered in Santa Clara, California, and operates in the fields of Artificial Intelligence, Machine Learning, and Speech Recognition.
Founded with a mission to revolutionize voice AI, SoundHound has grown to employ between 501-1000 people. The company boasts over 20 years of expertise, automates over 10 billion conversations annually, and holds more than 400 patents. Their solutions are trusted by top brands globally and are designed to enhance customer service, sales, marketing, product experiences, operations, and IT service management.
How Much Funding Has SoundHound Raised?
- Series B
- Amount Raised: USD 7,000,000
- Date: May 2008
- Lead Investors: Walden Venture Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product development and market reach.
- Series Unknown
- Amount Raised: USD 4,000,000
- Date: August 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and growth initiatives.
- Series C
- Amount Raised: USD 24,000,000
- Date: October 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and expand market presence.
- Series D
- Amount Raised: USD 75,000,000
- Date: January 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate product innovation and market expansion.
- Corporate Round
- Amount Raised: USD 100,000,000
- Date: May 2018
- Lead Investors: Tencent
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen strategic partnerships and fuel growth.
- 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 to early investors and employees.
- Post-IPO Equity
- Amount Raised: USD 111,000,000
- Date: April 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support public market entry and growth initiatives.
- 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 extend maturity dates.
- Post-IPO Equity
- Amount Raised: USD 25,000,000
- Date: January 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To drive further innovation and support growth plans.
- Post-IPO Debt
- Amount Raised: USD 100,000,000
- Date: April 2023
- Lead Investors: Atlas Credit Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To refinance existing debt, reduce cash outflows, and extend debt maturity.
Total Amount Raised: USD 446,000,000. Current Valuation: Not publicly disclosed.
Key Investors
- Atlas Credit Partners
- Details: Atlas Credit Partners is a Houston, Texas-based asset management firm specializing in credit investing. They partner directly with middle-market growth companies, providing minimally-dilutive capital solutions to facilitate transition, accelerate growth, and create long-term value for stakeholders.
- Investment Focus Areas: Credit investing, middle-market growth companies, minimally-dilutive capital solutions.
- Notable Investments: SoundHound AI.
- Tencent
- Details: Tencent is a Chinese multinational conglomerate holding company, known for its various internet-related services and products, entertainment, AI, and technology both in China and globally. It is one of the world's largest technology companies, with a significant presence in social media, gaming, and fintech.
- Investment Focus Areas: Social media, gaming, fintech, AI, technology.
- Notable Investments: Epic Games, Tesla, Spotify.
- Walden Venture Capital
- Details: Walden Venture Capital is a venture capital firm that invests in early-stage companies. They focus on digital media and cloud services, providing capital and strategic support to help companies grow.
- Investment Focus Areas: Digital media, cloud services, early-stage companies.
- Notable Investments: Pandora, SoundHound AI, Nanosys.
- Arrowshare Ventures
- Details: Arrowshare Ventures is a venture capital firm that invests in innovative technology companies. They focus on providing strategic guidance and capital to help companies scale and succeed in their respective markets.
- Investment Focus Areas: Technology, innovation, market scaling.
- Notable Investments: SoundHound AI.
- Union Square Advisors LLC
- Details: Union Square Advisors LLC is a technology-focused investment bank that provides strategic advisory services to growth companies. They specialize in mergers and acquisitions, capital raising, and other financial services.
- Investment Focus Areas: Technology, mergers and acquisitions, capital raising.
- Notable Investments: SoundHound AI.
What's Next for SoundHound?
SoundHound's future is brimming with opportunities, particularly in expanding its voice AI platform across various industries. The recent $100 million financing from Atlas Credit Partners, with an additional $25 million potentially available, positions the company to drive innovation and growth. This capital will support the expansion of their subscription and licensing businesses, particularly in AI-based customer service products and smart devices.
As the demand for conversational AI continues to rise, SoundHound is well-placed to capitalize on this trend. The company’s strategic focus on leveraging Generative AI and Large Language Models will enhance its technological capabilities, making it a formidable player in the market. Future fundraising opportunities may arise as the company seeks to further strengthen its market presence and technological advancements.
However, SoundHound will need to navigate challenges such as competition from other AI providers and keeping pace with rapid technological advancements. Ensuring the scalability and reliability of its platform will be crucial as it grows. Despite these challenges, SoundHound's strong financial backing and strategic vision suggest a promising path ahead.
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