Swedish AI startup Sana has recently raised $55 million in funding at a valuation of $500 million to expand its operations and bring its AI tools to the United States. The company, founded in 2016 by Joel Hellermark, offers AI tools that help streamline repetitive tasks for office workers by plugging into internal databases and various software tools. The company’s latest move was to create a free version of its AI agent, which has attracted around 100,000 new workplace sign-ups in just six months.
The free tier has proven to be successful, with larger teams paying $30 per user per month for more advanced features. This funding round, led by venture capital fund NEA, brings Sana’s total funding to over $130 million, making it one of the continent’s best-funded AI startups. Hellermark believes there is a huge demand for AI tools that can help companies integrate data from various sources and streamline workflows, and he sees Sana as a leading player in this space.
Sana faces competition from other AI players like Microsoft’s Copilot and enterprise search unicorn Glean, as well as a number of well-funded startups with a narrow focus on automating specific tasks for different industries. However, Hellermark believes Sana’s ability to integrate with multiple software tools and customize AI agents based on a customer’s internal data sets it apart from the competition. The company aims to be the user interface layer for AI, offering a single solution for companies to integrate and curate their data for different use cases.
The new funding round has doubled Sana’s valuation from its previous round in May 2023. The company has over $20 million in annual recurring revenue but is not yet profitable. NEA’s executive chairman, Scott Sandell, sees potential in Sana’s growth trajectory and believes that the company’s free business model is a powerful way to enter the market and monetize later on. Sana has also made strategic moves by acquiring Tel Aviv-based AI agent startup CTRL and hiring key talent like Oscar Täckström and Eric Olmers to strengthen its research and design capabilities.
Hellermark envisions Sana as a key player in the next wave of AI adoption, particularly in the enterprise software space. He believes that the company’s ability to bridge different software tools and customize AI agents for specific use cases will set it apart from vertical players in the market. By focusing on creating a seamless user interface for AI, Sana aims to empower companies to leverage their data more effectively and automate repetitive tasks, ultimately driving productivity and efficiency in the workplace.
