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Descript, the audio and video editing platform founded in 2017 by former Groupon CEO Andrew Mason, has raised $50 million in a Series C round led by the OpenAI Startup Fund. This investment is part of a tranche through which OpenAI and its partners, including Microsoft, are investing in early-stage companies.
A Second Investment from the OpenAI Startup Fund
This funding is the second cash infusion from the OpenAI Startup Fund after AI note-taking app Mem. Mason says that it reflects OpenAI’s belief in the future of Descript’s AI-powered features.
"I founded Descript with the idea of building a simple, intuitive, fully-powered editing tool for video and audio — an editing tool built for the age of AI," Mason told TechCrunch in an email interview. "We’re on the verge of a generational change in the way we create and consume media. Our new funding will help us to better serve our customers and make video creation more accessible."
Descript’s Growing Presence in the Market
The platform has been aggressively expanding, employing about 100 people in San Francisco. It initially focused on audio editing but launched its first video editing features two years ago. Descript is also making a name for itself by acquiring AI company Lyrebird in 2019 to power its Overdub feature.
Initially focused on the digital video market, which is estimated to be worth more than $20 billion, Descript counted NPR, VICE, The Washington Post, and The New York Times among its customers as of 2021. While Mason wouldn’t answer questions about revenue, he says that Descript’s client base has expanded in recent months to "major universities and nonprofits," as well as organizations in the public sector.
Expanding into Video Creation
The pandemic changed the way we create and collaborate — a lot of people cooped up at home got more curious about video, and a lot of people started exploring the creator economy. Companies started using video for more of their async communications. Around the same time, individual creators stopped respecting the boundaries between media; YouTubers started podcasts, podcasters flocked to TikTok, and so on.
"Our new funding, plus the fact that all those things I just mentioned are only gaining energy, puts us in a great position to weather any headwinds," Mason said.
About Descript
Descript is an audio and video editing platform founded by Andrew Mason. It has gained popularity for its user-friendly interface and AI-powered features such as Overdub. The company aims to make video creation more accessible and is expanding rapidly with a growing client base.
Related Topics
- AI
- Descript
- Media & Entertainment
- OpenAI Startup Fund
- Podcasts
- Startups
- Video
