Osage University Partners, Gradient Ventures and Rakuten Ventures featured in machine learning software developer Algorithmia's latest round, which brought its total to $37.9m.

US-based machine learning development software creator Algorithmia yesterday received $25m in a series B round backed by spinout-focused investment firm Osage University Partners (OUP). Norwest Venture Partners led the round, which also included Gradient Ventures, the artificial intelligence (AI)-focused investment unit of internet company Google, and Rakuten Ventures, the corporate venturing arm of e-commerce firm Rakuten. Madrona Venture Group and Work-Bench filled out the series B round. Founded in 2013, Algorithmia started out as a marketplace for algorithms but now provides AI-equipped development software that allows enterprises and government agencies to build expansive machine learning-based systems for their organisations. Algorithmia’s software confronts what the company regards as a major deterrent to AI’s adoption, that is, the manual resources taken up by infrastructure management tasks during deployment. The platform automatically builds an application programming interface from the client’s inputted machine learning algorithms and models. The series B capital will fund product development, hiring engineering talent, sales, marketing and international expansion. Rama Sekhar, a partner at Norwest Venture Partners, has joined the board of directors. The company previously raised $10.5m of series A funding in a 2017 round led by Gradient Ventures and backed by OUP, Rakuten Ventures, Work-Bench and Madrona, the latter of which led its $2.4m seed round in 2014. Rakuten Ventures, Deep Fork Capital and angel investors Oren Etzioni and Charles Fitzgerald also contributed to the seed round.

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