PhotoRoom, a startup hailing from the vibrant tech scene in Paris, France, has taken the AI world by storm with its innovative image editing app and API. Designed to cater to the needs of e-commerce vendors, media professionals, and various other industries, PhotoRoom’s technology has left a profound mark, even finding itself powering niche projects like a Barbie personalized poster site.
Multiple sources available to TechCrunch have revealed that the startup is actively raising an impressive sum, with estimates ranging between $50 million and $60 million. This funding drive is set to solidify PhotoRoom’s standing in the market, allowing it to further expand its capabilities and reach.
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While overall funding may be limited in the current climate, PhotoRoom’s ability to captivate investors and secure substantial backing speaks volumes about the potential and promise of its technology. That being said, PhotoRoom’s rise in value to a pre-money valuation estimated between $500 million and $600 million is a remarkable achievement.
While the full list of investors remains shrouded in mystery, hints suggest that significant players are involved. According to sources close to the matter, Balderton, the leading investor in the startup’s previous round, is once again at the helm of this funding endeavor.
However, it appears that they are not alone in their support. Both existing backers and new investors are said to be participating. The fact that the startup is actively considering different term sheets underlines the strategic significance of this funding round.
The roster of PhotoRoom’s existing backers includes notable names such as Adjacent, Kima Ventures, FJ Labs, Meta, and Y Combinator, where PhotoRoom made its debut as a member of the Summer 2020 cohort.
These investors are joined by a cadre of influential angels, including luminaries like Yann LeCun and Zehan Wang, formerly associated with Magic Pony and Twitter. Executives from Hugging Face and Disney+ have also thrown their support behind the startup.
If the current funding round concludes within the estimated range of $70-80 million, it would mark a significant milestone in PhotoRoom’s journey.
Co-founder and CEO of PhotoRoom Matthieu Rouif declined to comment on any funding-related questions. CTO Eliot Andres, who is also one of the co-founders, did not comment either.