Software maker Grammarly is worth $ 13 billion
Grammarly CEO Brad Hoover.
Grammarly, a start-up whose software highlights writing issues on its web app and other programs, said Wednesday that it is valued at $ 13 billion after receiving $ 200 million in new funding from Baillie Gifford, General Catalyst, has acquired funds and accounts managed by BlackRock and other investors.
The support shows that despite the dominance of wealthy companies like Google and Microsoft in the marketplace, investors are willing to pay a premium for a certain type of productivity software.
Notion, a start-up whose software enables people to create collaborative documents, said in a statement last month that it had raised funds valued at $ 10 billion, and Forbes reported in March that Airtable, a Start-up developing next-generation spreadsheet software was worth around $ 5.8 billion.
Grammarly’s free service detects misspellings, grammatical errors, and unnecessary words. A paid version offers additional types of recommendations and detects plagiarism. Business and enterprise levels help employees adhere to style guides and a common brand voice. Around 30 million people use Grammarly every day.
Google Docs and Microsoft Word can do some of what Grammarly can. Services like Turnitin owned by Advance Publications can find plagiarism cases. But given all its capabilities, Grammarly doesn’t have a single direct competitor, CEO Brad Hoover said in an interview with CNBC.
The start-up is running benchmarks to see how it compares to alternatives with grammatical feedback.
“We’re top of the class there,” said Hoover. “This is also due to the fact that we have concentrated on it for so long and have built up some infrastructure under the hood in order to be able to deliver these broad, precise and explainable results.”
But Grammarly was and will continue to be in English, Hoover said. Microsoft’s editor function for browser extensions and Office applications now supports over 20 languages.
Dmytro Lider, Max Lytvyn and Alex Shevchenko founded Grammarly in 2009. Today the company has over 600 employees with offices in San Francisco; Vancouver, British Columbia; and the Ukrainian city of Kiev.
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