Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
  • AI
  • Tech
  • Cybersecurity
  • Finance
  • DeFi & Blockchain
  • Startups
  • Gaming
Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
Dataconomy
No Result
View All Result

Grammarly has just secured a $1 billion commitment from General Catalyst

This unique financing structure provides capital secured by Grammarly’s recurring revenue acting as a form of lending rather than a traditional equity investment.

byEmre Çıtak
May 30, 2025
in Industry

Grammarly, the 14-year-old writing assistant startup, has received a $1 billion commitment from General Catalyst to bolster its sales and marketing initiatives and facilitate strategic acquisitions. The funding will not dilute Grammarly’s equity.

General Catalyst’s investment originates from its Customer Value Fund (CVF), which supports late-stage startups with reliable revenue streams. The CVF provides capital secured by a company’s recurring revenue, acting as a form of lending.

This financing structure allows companies such as Grammarly to avoid equity dilution and valuation resets. Grammarly’s valuation reached $13 billion in 2021. However, an anonymous investor notes a significantly lower valuation in the current market.

Stay Ahead of the Curve!

Don't miss out on the latest insights, trends, and analysis in the world of data, technology, and startups. Subscribe to our newsletter and get exclusive content delivered straight to your inbox.

Grammarly will repay the capital along with a fixed, capped percentage of revenue generated from the use of General Catalyst’s funds.

In December, Grammarly acquired productivity startup Coda and appointed its CEO, Shishir Mehrotra, to lead Grammarly. The acquisition reflects Grammarly’s shift toward becoming an AI productivity tool, which now has annual revenue exceeding $700 million.

General Catalyst’s Customer Value Fund has invested in nearly 50 companies, including insurtech Lemonade and telehealth platform Ro. CVF operates with separate limited partners and was not part of the firm’s recent $8 billion capital raise.


Featured image credit

Related Posts

Nvidia to build AI center of excellence in Dominican Republic

Nvidia to build AI center of excellence in Dominican Republic

October 23, 2025
The OpenAI lawsuit over a teen’s death just took a darker turn

The OpenAI lawsuit over a teen’s death just took a darker turn

October 23, 2025
Apple trims iPhone Air production while boosting iPhone 17 and Pro lines

Apple trims iPhone Air production while boosting iPhone 17 and Pro lines

October 23, 2025
Google in talks with Anthropic for a cloud deal worth tens of billions

Google in talks with Anthropic for a cloud deal worth tens of billions

October 22, 2025
Sesame AI secures 0 million Series B to redefine conversational wearables

Sesame AI secures $250 million Series B to redefine conversational wearables

October 22, 2025
Smarter industrial control: How 36V BLDC controllers merge data and motion

Smarter industrial control: How 36V BLDC controllers merge data and motion

October 22, 2025

LATEST NEWS

The ChatGPT Atlas browser is already facing its first security exploit

The Willow chip marks a new milestone in Google’s quantum race

HBO Max finally lets you tell the algorithm what you actually think

The Lomo MC-A is a film camera with USB-C charging capability

You can now turn yourself into an alien on Snapchat for free

Tesla’s new AI5 chip promises 40x the performance of its predecessor

Dataconomy

COPYRIGHT © DATACONOMY MEDIA GMBH, ALL RIGHTS RESERVED.

  • About
  • Imprint
  • Contact
  • Legal & Privacy

Follow Us

  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
No Result
View All Result
Subscribe

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.