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- Preferred Networks
Preferred Networks Valuation, Funding & Investors
Preferred Networks is valued at $1.9B as of December 2024.
Last Preferred Networks valuation
$1.9B
Strategic investment · Dec 2024
Last Preferred Networks funding round
$124M
Strategic investment · Dec 2024
Cumulative funding Preferred Networks raised
$353M
across 8 funding rounds
Key investors in Preferred Networks
Toyota
Mitsui & Co
SBI Holdings
Mizuho Financial Group
Mitsubishi
Development Bank of Japan
About Preferred Networks
Preferred Networks is a Tokyo-based deep learning company founded in 2014 with a U.S. subsidiary in Burlingame, California. The firm develops AI applications for autonomous driving, robotics, manufacturing optimization, and bio-healthcare, partnering with institutions like RIKEN and corporations including Toyota and FANUC on edge AI frameworks like MN-3.
Founded
2014
HQ
Website
Status
Privately held
Customer focus
B2B
Revenue model
Licensing
Valuation
$1.9B (Dec 2024)
Preferred Networks Valuation
Preferred Networks is currently valued at $1.9B, based on its strategic investment round in December 2024.
The $124M round was led by SBI Holdings, with participation from Wacon, Development Bank of Japan, Mitsubishi and Sekisui House.
Preferred Networks' valuation has grown 20x from $95M at its strategic investment round in August 2015 to $1.9B in December 2024, across 2 priced rounds.
Preferred Networks valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Dec 2024 | Strategic investment | $1.9B |
| Aug 2015 | Strategic investment | $95M |
Preferred Networks Funding History
Preferred Networks has raised a total of $353M across 8 funding rounds.
Preferred Networks' first fundraising round was a $2M strategic investment round in October 2014. The most recent completed round was a $124M strategic investment round in December 2024.
Preferred Networks funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Dec 2024 | Strategic investment | SBI Holdings (lead); Wacon; Development Bank of Japan; Mitsubishi; Sekisui House | $124M | $1.9B | Preferred Networks (PFN), founded in 2014, develops AI solutions, semiconductors, and vertically integrated hardware-software for practical AI applications, including low-power AI processors like the MN-Core Series (e.g., MN-Core L1000 for generative AI inference), MN-Server 2 (20 million yen standard price), and MN-Core 2 DevKit (2 million yen). The company focuses on generative AI foundation model PLaMo, large-scale computing infrastructure, and solutions across domains, positioning as Japan's highest-valued unicorn with valuation exceeding 300 billion yen. On December 23, 2024, PFN announced the first close of its latest equity financing round, raising a total of 19 billion yen led by SBI Group, with participation from SEKISUI HOUSE Innovation & Communication, Development Bank of Japan, Mitsubishi Corporation, and Wacom, plus debt financing from Shoko Chukin Bank, SMBC, MUFG Bank, and Resona Bank. This built on a prior August 2024 capital and business alliance with SBI Holdings for next-generation AI semiconductor development. Funds are allocated to talent recruitment, accelerating development/manufacturing/sales of MN-Core Series, enhancing PLaMo, AI solutions/products, and computing infrastructure expansion. Total known funding reached approximately 36 billion yen post-round. The round extended into 2025, with an additional 5 billion yen raised by April 30, 2025 (total to 24 billion yen), and further undisclosed equity from new investors like TBS Innovation Partners and Sumitomo Life by June 30, 2025, all referencing the same December 2024 initiative for AI semiconductors, infrastructure, foundation models, and solutions. Investors highlight PFN's role in addressing AI power consumption, semiconductor shortages, and global expansion via collaborations (e.g., Mitsubishi's cross-industry network, SBI's ecosystem building). |
| Jun 2019 | Strategic investment | ENEOS Holdings; JXTG Holdings | $9M | - | Preferred Networks, a Japanese AI company specializing in deep learning technologies, received approximately 1 billion yen investment from JXTG Holdings on June 25, 2019, to establish a joint research project for optimization and automation in oil refineries and development of new materials using PFN’s materials informatics. The investment involved allocation of new shares in July, with the post-money valuation at 3,516,745,800 yen. Funds were allocated to strengthen financial base, expand computing resources, and acquire talent. |
| Jul 2018 | Undisclosed stage | Chugai Pharma; Tokyo Electron | $90M | - | Preferred Networks, Inc. (PFN), a Tokyo-based AI company founded in 2014, specializes in deep learning technologies, including the open-source framework Chainer, and applies AI to industries like manufacturing, healthcare, and semiconductors. On July 26, 2018, PFN announced investments totaling about 900 million yen: approximately 700 million yen from Chugai Pharmaceutical Co., Ltd. and 200 million yen from Tokyo Electron Ltd., to be received through TEL's subsidiary in August 2018. The funds were allocated to strengthen PFN's financial base, enhance computing resources, and support recruitment of talent. PFN and Chugai established a comprehensive partnership to leverage deep learning for drug research, development of innovative drugs, and exploratory initiatives in healthcare and life sciences. Separately, PFN and Tokyo Electron initiated joint research on deep learning applications for optimization and automation in semiconductor manufacturing. This 2018 round followed prior financings, such as a 900 million yen investment from FANUC in 2015 at a 15 billion yen valuation and 10.5 billion yen from Toyota in 2017. Subsequent rounds included 1 billion yen from JXTG Holdings in 2019 at a valuation of 3,516,745,800 yen. PFN continued advancing AI hardware like MN-Core accelerators and supercomputers, with much larger raises in 2024-2025 totaling over 24 billion yen for AI semiconductors and generative AI development. |
| Dec 2017 | Strategic investment | Hakuhodo Dy Holdings; Mizuho Financial Group; Hitachi; Mitsui & Co | $18M | - | - |
| Aug 2017 | Strategic investment | Toyota (lead) | $96M | - | Preferred Networks (PFN), a Tokyo-based deep learning startup founded in March 2014, specializes in edge-heavy computing for IoT applications, focusing on industries like transportation, manufacturing, and bio-healthcare. The company develops technologies such as the Deep Intelligence in Motion (DIMo) platform and the open-source Chainer deep learning framework, partnering with organizations including Toyota, FANUC, and the National Cancer Center. On August 4, 2017, Toyota Motor Corporation invested 10.5 billion yen (approximately $95.4 million) in PFN through new share allocation, following a prior 1 billion yen investment in December 2015. This made Toyota PFN's largest shareholder, strengthening their joint research since October 2014 on AI technologies like object recognition and vehicle information analysis for autonomous driving and mobility. PFN planned to use the funds to enhance computational environments and hire talent. Later in December 2017, PFN raised over 2 billion yen from investors including FANUC, Hakuhodo DYHD, Hitachi, Mizuho Bank, and Mitsui & Co., completing a series of fundraisings post-Toyota's investment to bolster financial base, computing resources, and collaborations. |
| Dec 2015 | Strategic investment | Toyota (lead) | $8M | - | Preferred Networks, Inc. (PFN) is a deep learning and artificial intelligence company founded in March 2014 as a spin-off from Preferred Infrastructure. The company develops Chainer, an open-source deep learning framework, and solutions based on its Deep Intelligence in Motion (DIMo) platform, focusing on applications in machine learning, deep learning, and big data processing for industrial use cases. In December 2015, Toyota Motor Corporation invested approximately 1 billion yen in PFN through an allocation of new shares, as part of a strategic partnership to strengthen joint research and development in artificial intelligence technologies for mobility applications. This investment marked the beginning of a significant long-term relationship between the two companies, building on collaboration that had started in October 2014. Toyota would go on to become PFN's largest external shareholder, investing a total of approximately $100 million across multiple rounds through 2017, including an additional major investment of 10.5 billion yen announced in August 2017. |
| Aug 2015 | Strategic investment | GM-FANUC Robotics | $7M | $95M | Preferred Networks Inc. (PFN) is a Japanese company specializing in machine learning and deep learning technologies. On August 21, 2015, FANUC CORPORATION announced a capital tie-up with PFN, investing 900 million yen for a 6.0% stake via allocation of new stock, implying a post-money valuation of 15 billion yen. The investment was planned before end of September 2015. The collaboration aims to enhance machine tools and robotics with intelligence using PFN's deep learning expertise and FANUC's manufacturing technologies. This tie-up builds on a prior business alliance to advance automation in physical manufacturing sites, including Industry 4.0 applications. |
| Oct 2014 | Strategic investment | NTT Group (lead) | $2M | - | - |
Who has invested in Preferred Networks?
16 investors have backed Preferred Networks across its funding rounds, including Toyota, Mitsui & Co, SBI Holdings, Mizuho Financial Group, Mitsubishi and Development Bank of Japan.
Lead investors include SBI Holdings, Toyota and NTT Group.
Preferred Networks Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 2 | Lead | Dec 2015 | ||
| 1 | Participant | Dec 2024 | ||
| 1 | Participant | Jul 2018 | ||
| 1 | Participant | Dec 2017 | ||
| 1 | Participant | Dec 2017 | ||
| 1 | Participant | Jun 2019 | ||
| 1 | Lead | Dec 2024 | ||
| 1 | Participant | Dec 2024 | ||
| 1 | Participant | Jun 2019 | ||
| 1 | Participant | Dec 2024 | ||
| 1 | Participant | Jul 2018 | ||
| 1 | Participant | Dec 2024 | ||
| 1 | Participant | Dec 2017 | ||
This data is available for Pro users. Sign up to see all 16 Preferred Networks investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialInvestments by Preferred Networks
Preferred Networks has invested in 4 companies to date.
Latest investment by Preferred Networks was on January 4th 2022. Preferred Networks invested in 8sense in their $100K Seed round.
Latest Investments by Preferred Networks
| Description | 8sense is a Zurich-based developer of wearable sensors for posture correction in office environments. The Band device tracks back position and movement, delivering real-time feedback via vibrations, app notifications, and gamified challenges. Clinically validated for reducing slouching, it connects to iOS and Android for progress analytics. Founded in 2016, 8sense targets professionals combating sedentary lifestyle risks. | - | Intimate Merger Inc is engaged in the data management platform business. The company provides a data management platform and data utilization consulting services for advertising agencies, media, tool vendors, and select data management platforms. | Quantum Biosystems is a Pasadena, California-based developer of single-molecule DNA sequencers using quantum tunneling detection. Founded in 2014, the company prototypes chips with nanopores and electrodes for base-by-base readout at 1 gigabase per run, targeting genomics labs and biotech firms. |
| HQ Country | ||||
| HQ City | - | - | Tokyo | San Francisco, CA |
| Deal Date | 4 Jan 2022 | 16 Jun 2020 | 31 Jan 2014 | 30 Apr 2013 |
| Round | Seed | Seed | Strategic investment | Seed |
| Raised | $100K | $1M | $300K | $1M |
| Investors | Hitachi | Resona Capital | FreakOut Holdings | Jafco Group |
| Valuation | undisclosed | undisclosed | undisclosed | undisclosed |
| EV/Revenue | ||||
| EV/EBITDA | ||||
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Preferred Networks Competitors
Preferred Networks competitors include listed companies like UBtech Robotics and Fractal Analytics, and private ones like Yitu Technology, Allen Control Systems, Odyssey and Distyl AI.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | - | $2B | - | ||
| Private | - | - | $2.2B | - | ||
| Private | - | - | $1.4B | - | ||
| Publicly listed | $298M | ($108M) | $5.1B | 9.5x | ||
| Private | - | - | $1.8B | - | ||
| Publicly listed | $344M | $50M | $1.3B | 3.4x |
Preferred Networks Public Comps
Preferred Networks is still privately-owned, but its public comps include C3.ai, Wenge AI, TRS Information Technology, ROKAE Robotics, Haizhi, Shenzhen Ysstech Info, Ncino, Affle 3i, PCITECH and BigBear.ai.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $250M | ($484M) | 4.3x | 4.5x | (2.2x) | (6.2x) | |||
| $60M | ($20M) | 27.6x | - | (82.7x) | - | |||
| $76M | ($20M) | 19.3x | 19.7x | (73.5x) | 478.8x | |||
| $78M | ($7M) | 20.7x | - | (221.3x) | - | |||
| $93M | ($30M) | 21.5x | 16.3x | (67.1x) | (440.4x) | |||
| $205M | $4M | 7.2x | - | 378.8x | - | |||
| $595M | $65M | 4.3x | 4.0x | 39.0x | 15.8x | |||
| $282M | $67M | 7.4x | 6.7x | 31.3x | 29.5x | |||
This data is available for Pro users. Sign up to see all Preferred Networks competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Preferred Networks
| When was Preferred Networks founded? | Preferred Networks was founded in 2014. |
| Where is Preferred Networks headquartered? | Preferred Networks is headquartered in Tokyo, Japan. |
| Is Preferred Networks publicly listed? | No, Preferred Networks is a private, VC-backed company. |
| What is Preferred Networks' valuation? | Preferred Networks was last valued at $1.9B in its strategic investment round in December 2024. |
| How much funding has Preferred Networks raised? | Preferred Networks has raised $353M across 8 funding rounds. |
| What was Preferred Networks' last funding round? | Preferred Networks' last funding round was a $124M strategic investment round in December 2024, led by SBI Holdings. |
| Who are Preferred Networks' investors? | Preferred Networks' investors include Toyota, Wacon, Chugai Pharma, Hakuhodo Dy Holdings, Mizuho Financial Group, ENEOS Holdings, SBI Holdings, Development Bank of Japan, JXTG Holdings, Mitsubishi and 6 others. |
| Which companies are comparable to Preferred Networks? | Companies comparable to Preferred Networks include Yitu Technology, Allen Control Systems, Odyssey, UBtech Robotics, Distyl AI and Fractal Analytics. |
| How many companies has Preferred Networks invested in? | Preferred Networks has invested in 4 companies, including 8sense, Whomor, Intimate Merger and Quantum Biosystems. |
| What was Preferred Networks' last investment? | In January 2022, Preferred Networks invested in 8sense's $100K seed round alongside Hitachi. |
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