San Jose, CA, USA - XL8, a deep-tech startup in AI-powered translation, recently confirmed that it has successfully raised $7.5 million in its Series A round.
The new funding brings the company's total capital to $11.5 million.
Why it matters:
Recent times have been challenging for tech startups when it comes to fundraising.
Despite this, XL8 has secured substantial backing, underscoring the potential investors see in AI-powered localization tools.
The Key Points
- Investment details: KB Investment, a prominent Korean venture capital market player, led this round. The firm has previously invested in companies in Southeast Asia, India, and the US healthcare sector. Another backer, Atinum Investment, returned as an investor.
- Use of funds: XL8 plans to use the funds to enhance its products and underlying platform. A key focus will be to incorporate generative AI into its AI offerings. They also want to expand their global reach into Europe and the Middle East. This will build on their previous expansion efforts in the UK, Turkey, and the UAE.
- AI Integration: Josh Pine, Chief Revenue Officer at XL8, discussed their initiative to integrate AI into their tools further, calling the approach "AI-squared." The tool aims to serve a diverse clientele, from major film producers to independent filmmakers.
- Efficiency and output: XL8 emphasizes the synergy of man and machine in their work, making transcription and translation more efficient. This not only increases the efficiency of the task but also has the potential to increase the output of professionals in the field.
- Localization and demand: Ji Ae Lee of KB Investment highlighted the growing global appetite for localization services as the consumption of video content increases. Integrating AI into traditional systems is seen as a forward-thinking solution to meet this demand.
- Product Insights: Reflecting on the past year since the launch of MediaCAT, XL8 CEO Tim Jung mentioned the lessons learned. The goal remains to help global professionals enhance their creative efforts.
The Big Picture
XL8's acquisition of AHT, known for its US government-related transcription services, signals its goal to diversify beyond entertainment.
The company envisions working across multiple sectors, such as live broadcasting and e-commerce.
Its position in specialized translation technology and its growth strategy suggest focusing on innovation and expanding its reach in AI localization.