grammarThe San Francisco-based company, which manufactures technologies that enable people to communicate more effectively, made the first investment in its 11-year history and participated in a $ 10 million start-up round for Docugami, a Seattle-based startup for AI Document Engineering.
Brad Hoover, CEO of Grammarly, said in an interview that the investment represents "a unique opportunity to advance our mission" by supporting a company that is focused on Grammarly's efforts to help people communicate improve.
The companies joined after Hoover and Docugami CEO Jean Paoli, a former Microsoft manager, happened to meet at an event last year.
They said they had no plans to become technology or product partners in the short term, but they did not rule out the possibility of a future.
"We both have a similar mission at some level to really use this new kind of technology to help people with the very difficult communication process," said Hoover.
Grammar has expanded beyond its initial focus on spelling and grammar to offer a wider range of technologies. including a "sound detector" This helps users understand the potential impact of their words. The company offers plugins and tools for a variety of writing and communication platforms.
The company is also facing increasing competition from Microsoft, which was recently released its own Microsoft editor for the Chrome and Edge browsers.
Docugami uses artificial intelligence to help companies create and extract information from unstructured documents. Paoli was a co-developer of the industry-wide XML 1.0 standard Microsoft InfoPath and modern Microsoft Office file formats. He says the company has a mission to end "document malfunction" by creating new value from the large amount of information stored outside of structured databases.
Docugami and grammar are "on the same wavelength," said Paoli, calling it an honor for Docugami to be the recipient of Grammarly's first investment.
The companies announced neither the amount of Grammarly's investment nor the amount of the resulting share. Docugami announced the $ 10 million seed round in February, but Grammarly's participation has not yet been announced. The round, which was unusually large at the beginning, was led by the Silicon Valley Venture Fund SignalFire with the participation of NextWorld Capital and experienced tech managers and angel investors
Grammarly launched its own $ 90 million financing round last fall valued at over $ 1 billion. The company has been cash flow positive and profitable for most of its history, giving it the flexibility to participate in the Docugami financing round, Hoover said.
According to Hoover, Grammarly has no concrete plans to invest in other companies. However, he added: "If we see great teams making significant progress in key aspects of our industry, we will definitely consider it." He called it "a unique time to invest" given the current developments in the world.
Docugami has doubled its team to 20 employees since increasing its round of start-up capital.