VC firms led by General Catalyst are investing $110 million in Grammarly Inc. The other investors include Breyer Capital, IVP, SignalFire and Spark Capital. The funding round is one of the largest initial investments for a technology startup in recent time and the first round of funding for Grammarly which was founded in 2009.
Grammarly Inc is based in San Francisco and has developed software which underlines awkward words and phrases in the user’s writing and makes suggestions, and help users with sentence structuring and vocabulary.
According to the Grammarly Inc, its software tailors the tone and word choice of personal or professional writing for its 6.9 million daily users, many of who interact with the service through a web browser extension for Google Chrome. Although Grammarly is used mostly for free, it still makes money from users that pay $11.99 monthly for help with sentence structuring and vocabulary.