Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>Anthropic positioned itself as the large language model (LLM) for businesses with their mid-2023 update to Claude, adding a 100K token context window (versus the 8K of OpenAI’s GPT-4) so companies could do the now-standard process of RAG plus zero-shot prompting to retrieve proprietary data and inject it into their prompts.</li><li>With Anthropic’s March launch of Claude 3 Opus, OpenAI’s GPT-4 has competition for its crown as the state of the art LLM for B2B, with Perplexity CEO Aravind Srinivas deeming Opus the best LLM on the market.</li><li>Sacra estimates that Anthropic is at $316M annual recurring revenue (ARR), up 1,341% year-over-year from $22M ARR in March 2023 with a 61x forward revenue multiple on their last valuation of $18.4B, monetizing like OpenAI both with its developer tools API via usage and offering a prosumer chat experience on subscription.</li></ul>

Anthropic positioned itself as the large language model (LLM) for businesses with their mid-2023 update to Claude, adding a 100K token context window (versus the 8K of OpenAI’s GPT-4) so companies could do the now-standard process of RAG plus zero-shot prompting to retrieve proprietary data and inject it into their prompts.With Anthropic’s March launch of Claude 3 Opus, OpenAI’s GPT-4 has competition for its crown as the state of the art LLM for B2B, with Perplexity CEO Aravind Srinivas deeming Opus the best LLM on the market.Sacra estimates that Anthropic is at $316M annual recurring revenue (ARR), up 1,341% year-over-year from $22M ARR in March 2023 with a 61x forward revenue multiple on their last valuation of $18.4B, monetizing like OpenAI both with its developer tools API via usage and offering a prosumer chat experience on subscription.

<ul><li>Perplexity hit $11M annual recurring revenue (ARR) with their AI-powered search tool.</li><li>Perplexity is at $11M ARR, up 37% monthly from $8M in January and $3M in October, with about 50M visits per month.</li><li>Perplexity has now positioned itself as the “Google Search for knowledge work”—designed for the 0.2% of queries longer than 10 words—monetizing with a $20/mo paid subscription.</li></ul>

Perplexity hit $11M annual recurring revenue (ARR) with their AI-powered search tool.Perplexity is at $11M ARR, up 37% monthly from $8M in January and $3M in October, with about 50M visits per month.Perplexity has now positioned itself as the “Google Search for knowledge work”—designed for the 0.2% of queries longer than 10 words—monetizing with a $20/mo paid subscription.

Perplexity: The $11M/year Cliff Notes For The Web Growing 4,272%

<ul><li>Hugging Face was founded in 2016 as a chatbot for teens, but they found product-market fit in 2018 after they open-sourced the Transformers library they built to run it, hitting 15,000 stars on Github in just one year.</li><li>Sacra estimates that Hugging Face hit $70M annual recurring revenue (ARR) at the end of 2023, up 367% from 2022, primarily off the growth of lucrative consulting contracts with many of the biggest companies in AI—Nvidia, Amazon, and Microsoft.</li><li>Just as GitHub (NASDAQ: MSFT, ~$1.5B in revenue in 2023) in the early days prioritized user and network growth over monetization—giving away unlimited public repos and charging just $25/mo for private repos—Hugging Face lets users host unlimited models for free, charging only for their hosted inference offering and for enterprise features like SSO.</li></ul>

Hugging Face was founded in 2016 as a chatbot for teens, but they found product-market fit in 2018 after they open-sourced the Transformers library they built to run it, hitting 15,000 stars on Github in just one year.Sacra estimates that Hugging Face hit $70M annual recurring revenue (ARR) at the end of 2023, up 367% from 2022, primarily off the growth of lucrative consulting contracts with many of the biggest companies in AI—Nvidia, Amazon, and Microsoft.Just as GitHub (NASDAQ: MSFT, ~$1.5B in revenue in 2023) in the early days prioritized user and network growth over monetization—giving away unlimited public repos and charging just $25/mo for private repos—Hugging Face lets users host unlimited models for free, charging only for their hosted inference offering and for enterprise features like SSO.

Hugging Face: The $70M/year anti-OpenAI Growing 367% year-over-year

<ul><li>Mid 2022, Scale’s bread-and-butter of autonomous vehicle (AV) data labeling workloads went into a decline alongside falling R&amp;D investment and VC funding, with GM’s Cruise (2021 valuation: $30B) suspending operations and Argo AI (2021 valuation: $7.B), Lyft (NASDAQ: LYFT), and Uber (NYSE: UBER) shutting down their AV programs.</li><li>In 2023, Scale’s revenue exploded to $760M ARR, up 162% YoY, with $18B in capital inflows to foundational model companies like OpenAI ($1.3B ARR in 2023), Anthropic ($200M ARR in 2023) and Cohere and generative AI apps like Runway ($237M raised) and Harvey ($106M raised) alongside the integration of gen AI-features into every app.</li><li>The very source of Scale’s near-term revenue re-acceleration poses the gravest long-term existential threat to its business, with LLMs getting closer to parity with humans on data-labeling tasks while being cheap and 20x as fast.</li></ul>

Mid 2022, Scale’s bread-and-butter of autonomous vehicle (AV) data labeling workloads went into a decline alongside falling R&amp;D investment and VC funding, with GM’s Cruise (2021 valuation: $30B) suspending operations and Argo AI (2021 valuation: $7.B), Lyft (NASDAQ: LYFT), and Uber (NYSE: UBER) shutting down their AV programs.In 2023, Scale’s revenue exploded to $760M ARR, up 162% YoY, with $18B in capital inflows to foundational model companies like OpenAI ($1.3B ARR in 2023), Anthropic ($200M ARR in 2023) and Cohere and generative AI apps like Runway ($237M raised) and Harvey ($106M raised) alongside the integration of gen AI-features into every app.The very source of Scale’s near-term revenue re-acceleration poses the gravest long-term existential threat to its business, with LLMs getting closer to parity with humans on data-labeling tasks while being cheap and 20x as fast.

<ul><li>Anthropic hit $100M annual recurring revenue (ARR) midway through 2023, up ~1,900% from only $10M at the end of 2022, with a $4.1B valuation for a forward revenue multiple of 41x.</li><li>OpenAI’s GPT-4 is the best LLM for reasoning and complex tasks, but it’s expensive and slow—opening the door for companies like Anthropic (Claude) and Cohere (Command) to target developers with cheaper and faster models.</li><li>As with on-demand companies like Uber and Lyft in the early 2010’s, the initial hype cycle has seen billions invested in the LLMs deemed most likely to win—$14.5B into OpenAI, Anthropic, and Cohere alone—creating capital moats as barriers to future competition.</li></ul>

Anthropic hit $100M annual recurring revenue (ARR) midway through 2023, up ~1,900% from only $10M at the end of 2022, with a $4.1B valuation for a forward revenue multiple of 41x.OpenAI’s GPT-4 is the best LLM for reasoning and complex tasks, but it’s expensive and slow—opening the door for companies like Anthropic (Claude) and Cohere (Command) to target developers with cheaper and faster models.As with on-demand companies like Uber and Lyft in the early 2010’s, the initial hype cycle has seen billions invested in the LLMs deemed most likely to win—$14.5B into OpenAI, Anthropic, and Cohere alone—creating capital moats as barriers to future competition.

United States

Anthropic, PBC operates as an AI safety and research company. The Company builds reliable, interpretable, and steerable AI systems. Anthropic serves customers in the United States.

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Anthropic (1892140D US)

Anthropic At $316M ARR

TL;DR: With the launch of Claude 3 Opus, Anthropic has cemented itself alongside OpenAI, Mistral and Google as one of the small handful of LLM...

Sacra

Perplexity: The $11M/year Cliff Notes For The Web Growing 4,272%

TL;DR: Last month, Perplexity hit $11M annual recurring revenue (ARR) with their AI-powered search tool. Their master plan hinges on using that...

Sacra

Hugging Face: The $70M/year anti-OpenAI Growing 367% year-over-year

TL;DR: Since launching in 2016, Hugging Face has become one of the most influential companies in AI and the face of an insurgent open-source...

Sacra

Scale At $760M ARR

TL;DR: Sacra estimates that Scale grew annual recurring revenue (ARR) 158% to $760M in 2023 riding the LLM wave just as their previous bread-and...

Sacra

OpenAI Vs. Anthropic Vs. Cohere

TL;DR: The surprise success of ChatGPT has expanded OpenAI’s consumer ambitions, creating an opportunity for LLM startups...

Sacra

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