Sources: AI synthetic research startup Aaru raised a Series A at a $1B ‘headline’ valuation

Aaru, a startup that provides near-instant customer research by using AI to simulate user behavior, has raised a Series A led by Redpoint Ventures, according to three people familiar with the deal.

The funding round included different valuation tiers, these people said.  Although some equity was sold at a $1 billion valuation, a lower valuation for other investors resulted in a blended valuation below $1 billion, sources told TechCrunch.

Multi-tier valuations within the same round are an unusual mechanism in venture capital, but investors say they are becoming increasingly common for desirable AI startups in the current market. This approach allows the company to report a higher valuation for a marketing “headline” while simultaneously offering better, less expensive terms to specific investors.

Aaru and Redpoint Ventures did not respond to a request for comment.

TechCrunch could not confirm the amount of money Aaru raised in the round, although one person estimated it was above $50 million. Another said that the startup is growing quickly, which entices VCs, but its annual recurring revenue (ARR) is still below $10 million.

Aaru was founded in March 2024 by Cameron Fink, Ned Koh and John Kessler, according to their LinkedIn profiles.

The startup’s prediction model generates thousands of AI agents that simulate human behavior based on both public and proprietary data. Aaru is an AI alternative to traditional market research methods, which generally include surveys and focus groups, a process that can take weeks or longer. By using agents trained on demographic data, the startup promises to instantly predict how various groups or geographies will respond to future events.  

The company’s customer partners include Accenture, EY, Interpublic Group, and political campaigns. Last year, Aaru AI’s polling methodology accurately predicted the outcome of the New York Democratic primary, according to reporting by Semafor.

Aaru competes with other social simulation startups, including Culture Pulse and Simile, as well as startups that apply AI to query humans about their product preferences, such as Listen Labs, Keplar, and Outset.

The startup raised an undisclosed amount of seed and pre-seed capital from investors, including A*, Abstract Ventures, General Catalyst, Accenture Ventures, and Z Fellows, according to people familiar with the deal and PitchBook data.