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Exclusive: Roboflow, vision AI startup, raises $40 million Series B

November 19, 2024

Roboflow is a company of a thousand use cases.

When I met Joseph Nelson, CEO and cofounder of Roboflow, I asked him a question that I ask pretty much everyone: If we randomly met at a party, how would you explain what your company does?

“I tell people that Roboflow makes developer tools to create a sense of visual understanding,” Nelson told me. But, he added, depending on the person’s job, “I then will immediately jump to giving them an example that makes it real for them.”

Then, for the next ten minutes, Nelson delighted in reeling off different professions and the corresponding visual use cases for Roboflow. For doctors, think medical imaging and diagnostics. Firefighters, how about early wildfire detection? If someone works in environmental research, Nelson points out that Roboflow is already being used to monitor coral reefs and underwater ecosystems. There are so many potential use cases for Roboflow, a computer vision startup, because the company deals in something so fundamental, even primal—what we see.

Roboflow has raised $40 million for its Series B, Fortune has exclusively learned. The round was led by GV, with Craft Ventures and Y Combinator joining along with Vercel’s Guillermo Rauch, Microsoft’s Jeff Dean, and Replit’s Amjad Masad. The company’s previous investors include Lachy Groom, Sam Altman, and Scott Belsky.

“The amazing thing is that if you think about machine learning, you immediately think of technical teams, and that’s right,” Nelson told Fortune. “But the truth is, the impact for it is almost everything else, every other place that wants to have a better understanding of the visual world.”

In short, Roboflow uses AI to make sense of what we see. There are a deluge of enterprise AI platforms out there, but Roboflow is directly linked to the tactile, physical world. It’s a clear throughline for Nelson, who grew up hyperaware of the relationship between technology and real-world environments. Nelson grew up in Iowa, where his family runs a traditional Midwestern row crop farm, primarily growing corn and soybeans. Even today, he still returns for harvest. When Roboflow signed a major farming equipment manufacturer as a customer, that’s “when my parents realized that we had a real, real company,” Nelson jokes. (He declined to say who exactly, but some web-scouring suggests it’s probably John Deere.)

The company told Fortune that more than 25,000 organizations build with Roboflow, including more than half of the Fortune 100. In the last 30 days, Roboflow has seen its open source packages downloaded more than one million times.

And those downloads suggest a dizzying number of customer use cases that are playing out right now. You have, for example, Pella Windows & Doors, which uses the Roboflow platform to scan products for defects. Automaker Rivian also uses Roboflow for quality control, while Wimbledon and U.S. Open broadcasters are leveraging the company’s models for player and ball tracking. BNSF Railway, another Roboflow customer, uses the platform to literally keep trains running. The company uses computer vision to maintain real-time yard inventories, reducing search times and optimizing loading and delivery in yards that can have up to 10,000 containers. A Berkshire Hathaway subsidiary and one of the largest freight railroads in the U.S., BNSF also uses Roboflow for real-time safety inspections.

The world is “full of images and things to see, and people making decisions based on what they see,” said GV general partner Crystal Huang, who will be joining Roboflow’s board. Huang believes that solving these kinds of physical problems represent a largely untapped “greenfield” opportunity, and she sees potential across verticals like manufacturing, logistics, retail, healthcare, and hospitality.

Nelson is cognizant of the innate challenge of so many use cases—after all, if you’re known for everything, you can end up being known for nothing.

Still, there’s an almost overwhelming sense of scope that makes me think about just how much we see each day, and the extent to which that’s our primary source of information. There are a lot of ways to see, some more complete than others. And if you can help people see more clearly, there’s a market for that.

“As humans, our sight predates our use of language,” said Nelson. “The ability to experience the world, understand and synthesize it, is innate to intelligence. And if you think about it, so much software that exists out in the world doesn’t have that sense, right? So much is unseen and unknown. But the promise of visual AI is that those things can be improved and better understood.”

We are so back…ServiceTitan has filed its S-1 for its planned IPO on the Nasdaq. Some headline numbers include the software company’s $35.7 million net loss, with $193 million in revenue, for the quarter ending on July 31. Check out the filing here. As always, love hearing your takes.

ICYMI…My colleague Jason Del Rey exclusively spoke to Perplexity CEO Aravind Srinivas about the company’s new shopping tools.

See you tomorrow,

Allie Garfinkle
Twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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VENTURE DEALS

- Kong, a San Francisco-based cloud API technologies developer, raised $125 million in Series E funding. Tiger Global and Balderton led the round and were joined by Ontario Teachers’ Pension Plan, 137 Ventures, existing investors Andreessen Horowitz, Index Ventures, CRV, and others.

- SuperAnnotate, a San Francisco-based AI datasets creation and management software provider, raised $36 million in Series B funding. Socium Ventures led the round and was joined by NVIDIA, Databricks Ventures, Play Time Ventures, and existing investors.

- QPLIX, a Munich-based wealth management software provider for family offices and private banks, raised €25 million ($26.5 million) in funding from Partech.

- Seen Health, an Alhambra, Calif..-based senior care provider, raised $22 million in Series A funding. 8VC led the round and was joined by Basis Set, Primetime Partners, Virtue, and Astrana Health.

- Lightsynq, a Boston-based quantum interconnect technology solutions developer, raised $18 million in Series A funding. Cerberus Ventures led the round and was joined by Murata Electronics North America, IAG Capital Partners, Safar Partners, and others..

- Citizen Health, a San Mateo, Calif.-based consumer health AI platform, raised $15.5 million in seed funding. Transformation Capital led the round and was joined by Wavemaker 360 and angel investors.

- Agentio, a New York City-based sponsored creator content ad platform, raised $12 million in Series A funding. Benchmark led the round and was joined by existing investors Craft Ventures and AlleyCorp and others.

- Flipturn, a New York City-based EV charger and fleet management platform, raised $11 million in Series A funding. CRV led the round and was joined by Accel.

- REBA, a Denver-based data analytics and intelligence platform for the property management industry, raised $10 million in Series B funding from Blueprint Equity.

- Jimini Health, a New York City-based AI-supported mental healthcare platform, raised $8 million in pre-seed funding from Zetta Venture Partners, LionBird, PsyMed, and others.

- Firsty, an Amsterdam-based free telecom provider, raised €5.1 million ($5.4 million) in seed funding. Speedinvest led the round and was joined by Dutch Founders Fund and others.

- Calvin Risk, a Zurich-based AI risk management platform, raised $4 million in seed funding from Join Capital and seed + speed Ventures.

- Heim Health, a London-based at-home healthcare software platform, raised £2.2 million ($2.8 million) in seed funding.. Heal Capital led the round and was joined by Form Ventures, Portfolio Ventures, and Houghton Street Ventures.

PRIVATE EQUITY

- PSG Equity invested $15 million in CommBox, a Glil-Yam, Israel-based omnichannel AI customer experience platform. Financial terms were not disclosed.

- Stonepeak acquired Fleet Companies, a Memphis-based trailer dealership and leasing company. Financial terms were not disclosed.

EXITS

- MidOcean Partners acquired Arnott Industries, a Merritt Island, Fla.-based automotive suspension technology developer, from Calera Capital. Financial terms were not disclosed.

- Sentinel Capital Partners acquired NSI Industries, a Huntersville, N.C.-based electrical and HVAC products provider, from Odyssey Investment Partners. Financial terms were not disclosed.

IPOS

- ServiceTitan, a Glendale, Calif.-based business management software provider for services contractors, filed to go public on the Nasdaq. The company posted $685 million in revenue for the year ending July 31, 2024. Battery Ventures, Bessemer Venture Partners, ICONIQ Growth, and TPG back the company.

FUNDS + FUNDS OF FUNDS

- INITIATE Ventures, a San Francisco based venture capital firm, raised $45 million for its first fund focused on companies at the intersection of healthcare, life sciences, and technology.

PEOPLE

- B Capital, a Los Angeles-based investment firm, added Timur Akazhanov as general partner. Previously, he was at H.I.G. Capital.

- Wireframe Ventures, a San Francisco-based venture capital firm, promoted Lily Bernicker to partner.

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What AI can see