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Venture

Sources: AI-powered synthetic research startup Aaru raises Series A at $1B ‘headline’ valuation

techtost.comBy techtost.com6 December 202502 Mins Read
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Sources: Ai Powered Synthetic Research Startup Aaru Raises Series A At
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Aaru, a startup that provides near-instant customer research using artificial intelligence to simulate user behavior, has raised a Series A led by Redpoint Ventures, according to three people familiar with the deal.

The funding round included different levels of valuation, these people said. Although some equity components were acquired at a $1 billion valuation, a lower valuation for other investors resulted in a combined valuation of less than $1 billion, according to people familiar with the deal. Tiered valuations within the same round are an unusual mechanism in venture capital, but investors say they are becoming more common for desirable AI startups in the current market. This approach allows the company to report a higher “equity” valuation while also offering better terms to certain investors.

Aaru and Redpoint Ventures did not respond to a request for comment.

The exact round size could not be learned, but one person said it is more than $50 million. Another source said the startup is growing fast, but its annual recurring revenue (ARR) is still below $10 million.

Aaru was founded in March 2024 by Cameron Fink, Ned Koh and John Kessler, according to their LinkedIn profiles.

The startup’s predictive model creates thousands of AI agents that simulate human behavior using public and proprietary data. Aaru replaces traditional market research methods, which generally include surveys and focus groups, by using agents to predict how groups in specific demographics or geographies will respond to future events.

The company’s client partners include Accenture, EY, Interpublic Groupand political campaigns. Last year, Aaru AI’s polling methodology accurately predicted the outcome of the New York Democratic primary, according to Semafor report.

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Aaru competes with other social simulation startups including; CulturePulse and Simileas well as startups applying artificial intelligence to ask people about their product preferences, such as Listen Labs, Keplar and Outset.

The startup raised an undisclosed amount of seed and earlier capital from investors including A*, Abstract Ventures, General Catalyst, Accenture Ventures and Z Fellows, according to people familiar with the deal and the PitchBook data.

Aaru AIpowered customer research Exclusive Headline raises Redpoint Ventures Research series sources startup synthetic synthetic data valuation
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