AI-Enhanced Business Services Startup Instabase Raises At $2B Valuation

Business services startup Instabase doubled its previous valuation to $2 billion after locking up a $45 million raise.

The round, first reported by Bloomberg, was led by existing investor Tribe Capital. Other investors included NEA, Andreessen Horowitz and Spark Capital.

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The new cash comes after the San Francisco-based startup announced this week it is integrating tools from OpenAI’s large language models.

Instabase allows its customers to create apps and workflows that can perform activities such as onboarding or invoice processing. With the new AI integrations, users can now create AI-powered apps without creating their own models.

The company last raised in 2019, closing a $105 million Series B led by Index Ventures. The round valued the company at “over $1 billion.”

Founded in 2015, the startup has now raised $177 million, per Crunchbase.

AI is everywhere

While AI seems everywhere, it has mainly been generative AI platforms like OpenAI and Anthropic that have gained most of the headlines.

However, more and more companies are incorporating AI into their own products and applications to increase the capabilities of its products. Payment giant Stripe and language company Duolingo have announced using OpenAI-bult tools in their products.

Just last month, London-based Builder.ai raised a Series D of more than $250 million led by Qatar Investment Authority. The company uses AI in its software development platform.

Of course, not all AI-related news recently has been about big rounds and new tools.

Over the weekend, Forbes reported Stability AI’s founder Emad Mostaque made exaggerated statements about both his own background and his generative AI startup.

The report claims Mostaque misled people — including investors — about his education, as well as a deal with Amazon — which referred to it as a strategic partner.