How Grafana Labs snagged a $6B valuation

Top News

• Grafana Labs raises $270M: TechCrunch reports that the software company’s latest raise is partially primary, and partially secondary sales. But the huge check comes with an updated price tag, boosting the value of Grafana from $3 billion to $6 billion. How did the open-source observability company manage such a jump in its worth? More than $250 million worth of annual recurring revenue (ARR) and 5,000 paying customers — up, TechCrunch notes, from 2,000 in 2022.

• Google’s mobile AI push is choppy: Good news, fans of the Pixel line of smartphones, the new devices are great. The Verge had very nice things to say about the new Pixel 9, Pixel 9 Pro, and Pixel Pro XL. However, the same review argued that on the software side of things, AI inclusions feel “kind of all over the place.” Color us not too surprised by the news.

• AI IP on the blockchain: Sure, it may sound like buzzword-bingo, but Story just raised $80 million at a reported $2.25 billion valuation to help solve the AI training data issue — on the blockchain. a16z Crypto led the transaction, arguing in a post that if “there’s no attribution or compensation, what incentive will there be to publish original creations on the open internet?” That’s a very reasonable perspective to take, and one that other, competing startups agree with. The problem that Story wants to solve is a real one, and a big one. The question is whether or not the market will be enthused about a crypto-forward solution or want something built on more trad rails. We’ll see!

Adding Story to the TWiST500

Based on the above, you may have seen this coming, but we’re adding Story to the TWiST500. Sure, there are only a sprinkling of web3 concerns on the list, but that doesn’t mean they are banned. To the contrary, all startups are up for inclusion so long as they are solving big problems and have the potential to generate massive outcomes.

Note: PIP Labs is the developer of the Story Protocol, but for the sake of simplicity, we’re calling the company ‘Story’ here.

Story fits the bill. It’s growing a business inside a growing space, which can be tough. But the lack of an incumbent means that the first built from tackling the AI model data training monetization has yet to be crowned. Story wants to prove coronal.

Apart from the scale of the market space it is tackling, Story also has the benefits of a massive capital base. $80 million is a huge chunk of change and one that could be expanded, given that its latest lead backer has deep pockets.

Capital as a weapon is out of favor in Silicon Valley circles, but when stacked against what competing startups — TollBit, Human Native — have raised, Story has enough in the bank to outlast its competition. Especially if it takes longer than founders and investors think it will to aggregate and monetize data for the AI market. — Alex

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This Week in Startups

E1995: Jason and Alex dug into the latest news to start the week, including data on the current state of venture investing. Both how venture investors are faring, and how founders are doing themselves. (If you ever wanted a breakdown of venture terms, this is a great show to watch). The duo also chatted through the latest Silicon Valley-media dustup, and closed with good news for founders looking to dodge a down round.

E1994: Liquidity is back and better than ever. David Weisburd invited investor Elad Gil, Top Tier Capital Partners' David York, and Jason Calacanis onto the show to chat about recession concerns, AI spending, the SaaS slowdown, accelerators, and liquidity. If you care about the current state of the startup investing game, this is the episode for you.

E1993: James Hicks from Final Boss Sour and Rae Lambert from River swung by the podcast to chat with Jason about what they are building. Final Boss Sour is a CPG company that makes incredibly sour pieces of fruit, akin to a candy. We’ve tasted them. They are indeed very sour, but in a good way. Lambert’s River startup is one that we’re a fan of. The service helps people connect IRL, and we use it for Founder Fridays!

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