Wispr raises $280M at $2B valuation to expand AI tools

AI dictation startup Wispr has secured $280 million in a Series B funding round led by Menlo Ventures, propelling the company's valuation to $2 billion. This latest injection of capital brings Wispr's total funding to $361 million, coming less than 10 months after its previous round. The investment features participation from existing backers including Notable Capital, NEA, Neo Ventures, 8VC, and MVP Ventures, alongside new investors such as Acrew, Forerunner, Goodwater, Peak XV, Together Fund, and PLUS Capital.

Wispr is using the funds to expand beyond its core dictation features into the competitive meeting-assistance market. To address recent user complaints regarding a dip in the output quality of its Wispr Flow dictation tool, the startup is launching a new speech-understanding model called Canto. The company claims Canto will dramatically improve performance, cutting error rates from 30% to less than 10%. This upgrade arrives as Wispr faces pressure from rival dictation apps like Willow, Monologue, Aqua, and Superwhisper, as well as free or low-cost tools targeting prosumers.

The company's new meeting note-taker tool positions it against established players like Granola, Fireflies, and Read AI. Wispr's tool generates summaries and action items, with plans to integrate with external applications to draft emails and update documents. Additionally, Wispr has expanded its reach by launching an Android app, growing its go-to-market teams in India and the U.K., and partnering with hardware manufacturers like the Oasis ring to enable quiet dictation.

To pioneer future technologies, the startup recently established Wispr Interface Labs. The new division is led by Ariya Rastrow, an early developer of Amazon Alexa. The lab will focus on researching and designing novel interfaces for human-computer interaction.