Confidential - Do not share without permission
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Confidential - Do not share without permission
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Performance
1.5x
-
Anthropic is an AI research company that builds reliable, interpretable, and steerable AI systems. Their first product is Claude, an AI assistant for tasks at any scale. Their research interests span multiple areas including natural language, human feedback, scaling laws, reinforcement learning, code generation, and interpretability.
Memo Highlights
Round
Secondary
Investors
Amazon, Google, Spark, Dustin Moskovitz, Eric Schmidt, Jaan Tallinn
Date
June 2024
Questions
team@joinbeyond.coConfidential
Do not share
Deck only available via Desktop
Highlights
Deal
- $30.3/share (including access fee) which is only 1% higher than their recent financing.
- Preferred Series B shares purchased from an underlying SPV (no carry or mgmt fees).
Why we’re excited to have secured allocation..
Leading AI Technology: Anthropic has developed highly capable AI models like Claude that are competitive with industry leaders like OpenAI's GPT-4. Claude 3, Anthropic's latest model, reportedly outperformed GPT-4 on industry benchmarks. Anthropic's focus on multimodal AI with photo and video capabilities also sets it apart
Experienced Team: Anthropic was founded by former OpenAI employees who are some of the top AI researchers in the world. This deep technical expertise has enabled rapid progress on the AI frontier.
Significant Funding: Anthropic has raised over $7B in funding since 2021, including major investments from tech giants like Amazon, Google, and Salesforce. Amazon alone has committed $4.5B to Anthropic, making it Amazon's largest venture investment ever. This funding has fueled Anthropic's rapid growth and development.
Valuation Growth: Anthropic's valuation has skyrocketed from $4.1B in May 2023 to $18.4B as of March 2024, a nearly 5x increase in less than a year. This rapid appreciation reflects Anthropic's strong competitive position and future potential in the booming AI market.
Strategic Partnerships: Anthropic has formed key partnerships with major tech companies to integrate its AI technology into their products and services. This gives Anthropic broad distribution and exposure to drive adoption of its models.
Potential Growth: Anthropic believes there will be just a few dominant players in the foundational model space. As Google ($2T), Apple ($2.5T) & Microsoft ($3T) dominated cloud & mobile, one of the few companies leading the next race are OpenAI ($80B) & Anthropic ($19B). Foundational AI has the potential to deliver 10-20x value of cloud & mobile. So even if Anthropic is able to take a fraction of this market, and reach the valuations of the previous dominant players, this still would represent significant upside.
Product
Anthropic's main product is Claude, an AI assistant and language model.
Anthropic has identified that enterprises need models that are: capable, safe to all, custom, fast, cost-effective. Have have built Claude 3 to ensure it:
Anthropic believes it is imminent that AI Agents will be able to complete complex end to end tasks and aim to spearhead this development.
Traction
- 2023 revenue finished between $80-100M ARR (with sources stating ~$300M ARR in March 2024)
- 2024 revenue is projected to reach $1B ARR (>1000% YoY growth)
- From formation, it took OpenAI ~8yrs to reach $1B in ARR, Anthropic is on track to reach this within 3 years, which would make it the fastest company to ever hit this milestone (most take 10+ years)
- Anthropic predict a 256x increase in performance by 2030
- Customers include: Slack, Quora, Midjourney, Bridgewater, many more
Distribution
To acquire and grow enterprise customers, which is the biggest opportunity in AI they have 3 key investors:
Market & Competition
AI & LLMs are projected to be worth $20T (20x size of cloud/mobile) and there are significant barriers to entry (capital & talent) that only a few have (OpenAI, Google, Anthropic).
Anthropic has several unique aspects that differentiate it from competitors in the AI industry:
Anthropic is built to be at parity with GPT4 but achieved this with just 20% of the capital raised. Claude 3 is outperforming ChatGPT4 in every spec and has a superior attack success rate (GPT4: 47%, Palm 2: 66%, Claude 2: 2%). It is also 20% cheaper than GPT4 turbo.
Intelligence performance
Vision Capabilities
Fewer refusals
Accuracy
Team
Founded by Dario Amodei, former Vice President of Research at OpenAI, and his sister Daniela Amodei, former Vice President of Safety and Policy at OpenAI. The other co-founders are Jared Kaplan, Benjamin Mann, Jack Clark, Sam McCandlish, and Tom Brown, all of whom were also former employees of OpenAI.
Investors
Memo
Deal
- $30.3/share (including access fee) which is only 1% higher than their recent financing.
- Preferred Series B shares purchased from an underlying SPV (no carry or mgmt fees).
Why we’re excited to have secured allocation..
Leading AI Technology: Anthropic has developed highly capable AI models like Claude that are competitive with industry leaders like OpenAI's GPT-4. Claude 3, Anthropic's latest model, reportedly outperformed GPT-4 on industry benchmarks. Anthropic's focus on multimodal AI with photo and video capabilities also sets it apart
Experienced Team: Anthropic was founded by former OpenAI employees who are some of the top AI researchers in the world. This deep technical expertise has enabled rapid progress on the AI frontier.
Significant Funding: Anthropic has raised over $7B in funding since 2021, including major investments from tech giants like Amazon, Google, and Salesforce. Amazon alone has committed $4.5B to Anthropic, making it Amazon's largest venture investment ever. This funding has fueled Anthropic's rapid growth and development.
Valuation Growth: Anthropic's valuation has skyrocketed from $4.1B in May 2023 to $18.4B as of March 2024, a nearly 5x increase in less than a year. This rapid appreciation reflects Anthropic's strong competitive position and future potential in the booming AI market.
Strategic Partnerships: Anthropic has formed key partnerships with major tech companies to integrate its AI technology into their products and services. This gives Anthropic broad distribution and exposure to drive adoption of its models.
Potential Growth: Anthropic believes there will be just a few dominant players in the foundational model space. As Google ($2T), Apple ($2.5T) & Microsoft ($3T) dominated cloud & mobile, one of the few companies leading the next race are OpenAI ($80B) & Anthropic ($19B). Foundational AI has the potential to deliver 10-20x value of cloud & mobile. So even if Anthropic is able to take a fraction of this market, and reach the valuations of the previous dominant players, this still would represent significant upside.
Product
Anthropic's main product is Claude, an AI assistant and language model.
Anthropic has identified that enterprises need models that are: capable, safe to all, custom, fast, cost-effective. Have have built Claude 3 to ensure it:
Anthropic believes it is imminent that AI Agents will be able to complete complex end to end tasks and aim to spearhead this development.
Traction
- 2023 revenue finished between $80-100M ARR (with sources stating ~$300M ARR in March 2024)
- 2024 revenue is projected to reach $1B ARR (>1000% YoY growth)
- From formation, it took OpenAI ~8yrs to reach $1B in ARR, Anthropic is on track to reach this within 3 years, which would make it the fastest company to ever hit this milestone (most take 10+ years)
- Anthropic predict a 256x increase in performance by 2030
- Customers include: Slack, Quora, Midjourney, Bridgewater, many more
Distribution
To acquire and grow enterprise customers, which is the biggest opportunity in AI they have 3 key investors:
Market & Competition
AI & LLMs are projected to be worth $20T (20x size of cloud/mobile) and there are significant barriers to entry (capital & talent) that only a few have (OpenAI, Google, Anthropic).
Anthropic has several unique aspects that differentiate it from competitors in the AI industry:
Anthropic is built to be at parity with GPT4 but achieved this with just 20% of the capital raised. Claude 3 is outperforming ChatGPT4 in every spec and has a superior attack success rate (GPT4: 47%, Palm 2: 66%, Claude 2: 2%). It is also 20% cheaper than GPT4 turbo.
Intelligence performance
Vision Capabilities
Fewer refusals
Accuracy
Team
Founded by Dario Amodei, former Vice President of Research at OpenAI, and his sister Daniela Amodei, former Vice President of Safety and Policy at OpenAI. The other co-founders are Jared Kaplan, Benjamin Mann, Jack Clark, Sam McCandlish, and Tom Brown, all of whom were also former employees of OpenAI.
Investors