Grammarly’s Second Fundraise Secures $90 Million and Unicorn Status

Financing

Grammarly’s Second Fundraise Secures $90 Million and Unicorn Status

Oct 10, 2019

CHECK, PLEASE: Who knew that spell check could be worth such a big check? Grammarly, the San Francisco-based provider of a digital writing assistant that provides feedback on spelling and grammar, has raised $90 million in its second fundraise, led by General Catalyst and IVP. Both firms also participated in the company’s first funding round—a $110 million investment in May 2017.

Founded in 2009, Grammarly says its tools are used by 20 million people every day, at home and across more than 2,000 institutions. It also claims that more than 1,000 schools and colleges use its education offering. In addition to spelling and grammar, the company claims that its artificial intelligence technology can even offer tone and other stylistic suggestions in people’s writing.

Grammarly offers a basic version of its product for free, and a subscription to advanced features range from $11 to $30 per month. According to its statement Thursday, the company has been profitable since 2011.

This marks the second major deal involving a digital writing assistant this year, following Turnitin’s $1.75 billion acquisition by Advance Media Publications in March. While Turnitin is best known for its plagiarism detection tools and has been focused on the education market, it has also invested heavily to dvelop its AI-powered writing feedback and revision tools.

Grammarly has now raised $200 million, and Axios reports that the company is now valued at over $1 billion, giving it “unicorn” status per investment parlance.

 

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