Read AI, a Seattle-based startup that sells productivity software tools powered by AI, has been experiencing rapid growth. The company has added 100,000 new accounts each week, with 75% of the Fortune 500 using its products, despite not spending any money on marketing. Recently, Read announced a $50 million Series B funding round led by Smash Capital, along with existing investors Goodwater and Madrona. The company’s focus has expanded beyond measuring engagement on video calls to analyzing emails and messaging threads, providing suggestions for action items based on its insights.
Read’s vision involves creating a “copilot everywhere” that functions across various platforms. The software can integrate with services like CRM tools and email clients, pulling relevant information from different communication channels to provide context and draft messages automatically. CEO David Shim envisions offering predictive analytics to customers based on the data it analyzes, automating information sharing within organizations. The company has seen significant growth through individual users who try the product for free and then introduce it to their colleagues, leading to an expansion within customer accounts.
Read charges between $15 to $40 per user per month, with a free tier available. While the company has not disclosed its revenue metrics, it is not yet profitable. Competitors include larger platform companies like Microsoft and Google, as well as startups such as Otter, Alice, and Fathom. Despite the competitive landscape, investors are optimistic about the potential of AI startups and are pouring significant funds into the sector, believing that it will have a massive impact on the industry. Read plans to double its headcount from 40 employees and expand its product offerings to meet the growing demand for AI-powered productivity tools.
Matt McIlwain, managing director at Madrona, compared Read’s growth trajectory to that of another successful enterprise software company they backed, Smartsheet. Both companies were able to acquire customers without a traditional sales team and saw strong evidence of “land and expand” patterns with their customer base. Bradley Twohig, managing partner at Smash Capital, highlighted the value provided by Read to its users, leading to impressive scale and user retention. Twohig believes that the number of products similar to Read in the market is indicative of the growing demand for AI-powered tools that enhance efficiency in the workplace.
As the company continues to expand its offerings and customer base, the team at Read AI is focused on integrating with as many services as possible to provide a seamless experience for users across different platforms. The founders, David Shim, Elliott Waldron, and Rob Williams, bring experience from their previous startup Placed, which was acquired by Snap for over $200 million in 2017. With $81 million in total funding, Read is well-positioned to capitalize on the growing interest in AI solutions for enterprise productivity and continue its rapid growth trajectory.
