Read the pitch deck machine-learning startup Arize AI used to raise $38 million from investors, including an early backer of Netflix and Airbnb
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- Machine-learning-observability startup Arize AI recently raised $38 million in a Series B round.
- TCV led the round. Battery Ventures, Foundation Capital, and Swift Ventures also invested.
- Insider got an exclusive look at the pitch deck Arize used to secure its latest funding round.
When Arize AI founders Jason Lopatecki and Aparna Dhinakaran launched the company in 2019, they set out to create a product that would help machine-learning engineers pinpoint inaccuracies in their models and improve performance. Being engineers themselves, they had seen that observability is often an afterthought.
“You spend two years building a model and getting it into production, and then you’re like, ‘Oh wow, I need to figure out what issues might occur and build a system around that,” Lopatecki told Insider.
The gap they pinpointed is at the heart of the fast-growing machine-learning operations, or MLOps, market, which Deloitte predicted could reach $4 billion in 2025. As more companies take up AI technology and hire teams to build and deploy models, they’ve increasingly relied on MLOps tools to spot and troubleshoot data and drift issues that can cause models to perform inaccurately.
Lopatecki and Dhinakaran first met at TubeMogul, a video-ad company Lopatecki founded and sold to Adobe for $540 million in 2016. Dhinakaran later worked for Uber, where she helped develop the ride-hailing giant’s machine-learning platform before the duo launched Berkeley-based Arize.
Since going to market in 2020, Arize has nabbed clients like Spotify, Procter & Gamble, Uber, and Instacart. The company has raised $61 million to date, including $38 million in a recent Series B round TCV led.
Lopatecki said the company will use the new round of funding for research and development, as well as for building out the company’s sales and marketing teams.
Arize is not the only MLOps startup focused on monitoring model performance. Its competitors include companies like Arthur, which announced a $42 million Series B round of funding in September, and Fiddler, which raised a $32 million Series B round in 2021.
Morgan Gerlak, a partner at TCV, said Arize attracted his firm because of its narrow focus and fleet of engineers, many of whom come from high-profile companies that have already been using AI for years, like Spotify and Lyft.
“This is really hard technology to build, and these folks are really at the top of their game from an engineering standpoint and in the best position to solve a really hard technical problem,” Gerlak said.