While the popularity of artificial intelligence-powered image generators is at an all-time high, Austin, Texas-based startup Jasper, an AI-enabled content platform, has completed its first round of funding. The company, founded in 2021, raised $125 million at a valuation of $1.5 billion, possibly signaling further growth in the nascent AI content creation market. The funding comes as the company is in the process of acquiring Outwrite, a style and grammar-checking platform that already boasts more than a million worldwide users.
The new influx of funding will be used to build out Jasper’s core products, improve customer experiences, and spread its technology to other platforms, according to CEO Dave Rogenmoser. It will also support the Outwrite acquisition and its integration into the Jasper platform, and combine the two companies and their products. The CEO also plans to build a world-class infrastructure that will foster Jasper’s growth.
The company was largely bootstrapped by Rogenmoser along with J.P. Morgan and Chris Hull of Red Arts Capital. The new round of funding was led by Insight Partners, with participation from Bessemer Venture Partners, IVP, Foundation Capital, Founders Circle Capital, Coatue, and HubSpot Ventures.