A Sequoia Capital

Jun 25, 2023

We’re starting the new week with fundraising news about a fast-evolving part of generative artificial intelligence: video.

Tavus, a two-year-old startup whose software helps companies customize videos they can then send to prospective customers, job candidates and others, has raised about $18 million in Series A funding at a $80 million post-investment valuation, five months after closing its seed round, according to a person with direct knowledge of the fundraising.

The startup currently has $1 million in annual recurring revenue, according to two people who spoke to Erin Woo and me, and expects to finish the year at $2 million to $3 million in ARR, one of those people said. The relatively low revenue figure was a sticking point for at least one investor who passed on the deal. They expected to see more revenue, given that Tavus had a months-long waitlist of customers leading up to its February product launch. We aren’t sure which VC firm led the Series A deal, and Tavus’ founders wouldn’t say.