YC-backed Recall.ai Raises $10M Series A to Help Companies Leverage Virtual Meeting Data | TechCrunch - Latest Global News

YC-backed Recall.ai Raises $10M Series A to Help Companies Leverage Virtual Meeting Data | TechCrunch

More money for the generative AI boom: Y Combinator-backed developer infrastructure startup Recall.ai announced Thursday that it has raised a $10 million Series A funding round, bringing its total raised amounts to over $12 million.

The startup has built an infrastructure and unified API that allows companies to access raw data from virtual meeting platforms such as Google Meet, Microsoft Teams, Slack Huddles, Zoom, and even platforms without an API. Using the video and audio data, users can create AI-powered meeting bots or apps such as sales coaching, meeting notes, or daily standup bots.

Recall.ai said the new capital will be used to expand its team and build integrations with more data sources. The two-year-old startup currently has nine employees and expects to grow its team to more than 16 by the end of this year, David Gu, co-founder and CEO, told TechCrunch.

Gu and Recall.ai co-founder Amanda Zhu both attended the University of Waterloo before dropping out to build the startup. “I studied software engineering while my co-founder studied computer science and business,” Gu said. “We left Waterloo when we were 19 to start a business together. I did Y Combinator when I was 19.”

The duo previously worked on a real-time transcription tool for video conferencing and had experience building integrations with video conferencing platforms and related infrastructure.

They launched Recall.ai in 2022 with the goal of responding to two critical trends – the global shift to remote work and the boom in generative AI – after seeing other companies facing the same problem as they do when integrating AI tools.

“Companies are increasingly looking for ways to integrate AI into their product offerings, and conversations are a huge data set where using AI makes a lot of sense,” Gu suggested. “In 2022, more and more companies began developing products that use LLMs [large language models] for processing data from video conferences. However, every single one of these companies encountered the same integration and infrastructure hurdles that we encountered and resolved.”

“It takes a year or more of development to build the infrastructure and integrations in-house in the simplest form,” he continued. “Once built, companies face a greater challenge: hosting the infrastructure requires hundreds to thousands of servers doing the processing and a team of engineers monitoring, scaling and maintaining everything.”

Companies that use Recall’s API and infrastructure don’t have to build that infrastructure themselves, meaning they can quickly and cost-effectively deploy new AI-powered products and features, Gu explained, comparing it to how companies rely on cloud computing, for example -Infrastructures can be accessed AWS scales its web apps. Recall.ai aims to provide the common infrastructure for any business that needs to access conversations and apply AI, he added.

“Recall.ai provides the infrastructure layer that many of these companies are built on, similar to how these companies use AWS,” he suggested. “We have no competitors because there are no other companies that offer the same service, namely a developer infrastructure to collect and process meeting data.”

Co-founders of Recall.ai: Amanda Zhu and David Gu

As for regulation, Recall.ai says it is SOC2, GDPR, CCPA, and HIPAA compliant and has no military or government contracts. Audio and video recordings are stored for a maximum of seven days and then automatically deleted.

“We also provide users with an API endpoint that allows them to instantly delete the data at any time if they want to minimize the length of time we retain the data,” Gu said.

The startup generates revenue by charging per hour for audio and video data processed through its APIs. In less than two years, Recall.ai has grown annual revenue from zero to millions of dollars, Gu noted, saying the company now has more than 300 enterprise customers that collectively bring in “millions” of users.

He also told us that the company has seen a 10-fold increase in sales over the last 12 months.

Ridge Ventures led the Series A alongside Industry Ventures, Y Combinator, IrregEx, Bungalow Capital, Hack VC and other existing investors.

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