US-based advanced computing technology provider Groq raised a $300m series C round, which featured venturing subsidiaries of electronics manufacturer TDK and algorithmic trading firm XTX Markets – TDK Ventures and XTX Ventures. Hedge fund manager Tiger Global Management and investment firm D1 Capital Partners co-led the round that reportedly valued the company at over $1bn. The fresh funding will be used to support the growth of its business, recruiting talent and product development. The company said it had raised a total $367m in venture funding. TDK Ventures had already provided a commitment of undisclosed size in August last year.
Founded in 2016, Groq develops hardware for use in advanced computing, AI and machine learning (ML) applications. It claims its hardware is capable of powerful computation with 50% less energy than its nearest competitor, reducing the user´s carbon footprint.
The company is part of the broader AI and ML tech space, which has seen much growth in corporate-backed deals in the past few years, as our GCV Analytics bar chart below illustrates. The interest of corporate venture investors in this space has been sustained at high levels throughout 2019 and 2020, not only in terms of number of deals but also in total estimated capital committed in those rounds. For the first three and a half months of 2021, we have already tracked 69 deals, worth an estimated $5.35bn, suggesting clearly a surge in valuations as the one we have witnessed in nearly all sectors since the beginning of the year.
