Aaru, an AI startup specializing in near-instant customer research through simulated user behavior, has concluded a Series A funding round led by Redpoint Ventures, according to three sources familiar with the deal. The funding round incorporated a multi-tier valuation mechanism, under which some equity was acquired at a $1 billion valuation, resulting in a blended valuation below $1 billion for the overall round.
This multi-tier valuation approach is considered an unusual structure in venture capital, though investors report it is becoming more frequent for highly sought-after AI startups in the current market. This method allows companies to cite a higher “headline” valuation while simultaneously offering more favorable terms to specific investors.
While the exact size of the Series A round was not disclosed, one individual familiar with the transaction indicated it exceeded $50 million. Another source reported that Aaru, founded in March 2024 by Cameron Fink, Ned Koh, and John Kessler, is experiencing rapid growth, although its annual recurring revenue (ARR) remains below $10 million. Aaru and Redpoint Ventures did not respond to requests for comment regarding the funding.
Aaru's core technology utilizes a prediction model to generate thousands of AI agents that simulate human behavior, drawing on both public and proprietary data. This system aims to replace traditional market research methods, such as surveys and focus groups, by forecasting how specific demographic or geographic groups may respond to future events.
The company's customer partners include Accenture, EY, Interpublic Group, and various political campaigns. In a notable instance last year, Aaru AI's polling methodology accurately predicted the outcome of the New York Democratic primary, as reported by Semafor. Aaru competes in the social simulation market with companies such as CulturePulse and Simile, as well as firms applying AI to human query processes, including Listen Labs, Keplar, and Outset.
Prior to this Series A, Aaru had secured undisclosed amounts of seed and pre-seed capital. These earlier investors included A*, Abstract Ventures, General Catalyst, Accenture Ventures, and Z Fellows, according to sources familiar with the deal and PitchBook data.
