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- Reducto
Reducto Valuation, Funding & Investors
Reducto is valued at $605M as of October 2025.
Last Reducto valuation
$605M
Series B · Oct 2025
Last Reducto funding round
$75M
Series B · Oct 2025
Cumulative funding Reducto raised
$108M
across 4 funding rounds
Key investors in Reducto
Y Combinator
First Round Capital
BoxGroup
Liquid 2 Ventures
Benchmark
Andreessen Horowitz
About Reducto
Reducto is a Boston-based company that converts complex documents into structured AI inputs using vision language models developed by MIT alumni. The platform processes unstructured data like medical records, financial statements, and legal contracts with human-like accuracy, enabling reliable AI model training and inference. Reducto secures sensitive information handling for enterprises in healthcare and finance sectors.
Founded
2023
HQ
Website
Status
Privately held
Customer focus
B2B
Revenue model
Subscription
Valuation
$605M (Oct 2025)
Reducto Valuation
Reducto is currently valued at $605M, based on its Series B in October 2025.
The $75M round was led by Andreessen Horowitz, with participation from First Round Capital, Y Combinator, BoxGroup and Benchmark.
Reducto valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Oct 2025 | Series B | $605M |
Reducto Funding History
Reducto has raised a total of $108M across 4 funding rounds.
Reducto's first fundraising round was a $500K pre-seed round in April 2024. The most recent completed round was a $75M Series B in October 2025.
Reducto funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Oct 2025 | Series B | Andreessen Horowitz (lead); First Round Capital; Y Combinator; BoxGroup; Benchmark | $75M | $605M | Reducto is an AI document intelligence platform that enables machines to interpret unstructured documents like humans, powering workflows in legal, financial, healthcare, and other sectors for AI-native startups and enterprises. The company raised $75 million in a Series B funding round on October 14-15, 2025, led by Andreessen Horowitz (a16z), with participation from Benchmark, BoxGroup, First Round Capital, and Y Combinator, bringing total funding to $108 million following a $24.5 million Series A in April 2025. This capital will accelerate research, product innovation like Agentic OCR for chart extraction and accuracy improvements, and scalability for both startups and large enterprises including Fortune 10 companies, global top 5 hedge funds, and leaders in healthcare, insurance, and real estate. Customers include emerging AI firms such as Harvey, Rogo, Mercor, and Scale AI, alongside major institutions relying on Reducto for critical document processing. Since the Series A announcement five to six months prior, document processing volume grew more than sixfold to nearly or over one billion pages monthly, demonstrating strong traction with low capital burn of only $1 million from Y Combinator to Series B in 18 months. The platform supports intelligent workflows, agentic applications for reading, editing, and acting on data, and new flexible pricing for smaller teams. Reducto originated from Y Combinator and pivoted early to focus on high-accuracy document processing, emphasizing founder-led sales and demos. Investors highlighted its role as indispensable AI infrastructure at an inflection point of proven technology and exploding demand across industries where processing errors carry high costs, such as healthcare and finance. |
| Apr 2025 | Series A | Benchmark (lead); First Round Capital; Y Combinator; BoxGroup | $25M | - | Reducto is an AI-powered document ingestion platform that processes unstructured data from complex documents like PDFs and spreadsheets, converting them into accurate, structured inputs for large language models (LLMs). Founded in 2023 by ex-Google and Nvidia engineers Adit Abraham and Raunak Chowdhuri, the San Francisco-based company uses vision-language models (VLMs), multi-pass parsing, and Agentic OCR to achieve high accuracy in industries such as finance, healthcare, tech, and legal. Customers including Scale AI, Vanta, Airtable, and Fortune 500/10 enterprises have used Reducto to parse over 250 million pages since launch, powering critical AI workflows and reducing engineering time significantly, as seen with client Legora tripling processing speed. On April 25, 2025, Reducto announced a $24.5 million Series A funding round led by Benchmark, with participation from existing investors First Round Capital, BoxGroup, and Y Combinator, bringing total funding to $33 million following an $8.4 million seed round in October 2024. Benchmark's Chetan Puttagunta joined the board, citing Reducto's multi-pass accuracy and enterprise readiness for processing paper-based PDFs. The funds will advance ingestion technology, scale product offerings like document splitting, classification, and extraction, and expand market reach to solidify Reducto as the definitive platform for unstructured data pipelines. The round underscores Reducto's rapid traction, with thousands of companies relying on its superior accuracy over alternatives like Gemini models, as noted by Vanta's engineering team. Subsequently, Reducto raised a $75 million Series B in October 2025 led by Andreessen Horowitz, indicating accelerated growth. |
| Oct 2024 | Seed | First Round Capital (lead); Andrew Ofstad; SV Angel; Y Combinator; Liquid 2 Ventures; BoxGroup; Tracy Young; Kulveer Taggar; Richard Aberman; Arash Ferdowsi; Ralph Gootee; JJ Fliegelman | $8M | - | Reducto is an AI platform that provides accurate ingestion and parsing of unstructured data for AI pipelines and LLMs. The company converts complex documents into structured data, enabling enterprises to process hundreds of millions of pages for clients like Airtable, Scale AI, and FAANG companies. Reducto focuses on vision models for documents across enterprise file types, with expansions into document splitting, classification, structured extraction, and cost-saving features for simpler pages. Reducto raised an $8.4 million seed round on October 2, 2024, led by First Round Capital, with participation from BoxGroup, Y Combinator, and angels including Andrew Ofstad, Arash Ferdowsi, JJ Fliegelman, Kulveer Taggar, Ralph Gootee, Richard Aberman, SV Angel, Tracy Young, and others. This seed funding supported advancing reliable data ingestion pipelines to prepare human data for LLM workflows. The round preceded a $24.5 million Series A in April 2025 led by Benchmark, bringing total funding to approximately $33 million. Reducto has gained traction with thousands of companies, including Vanta and Scale AI, trusting its technology for high-accuracy parsing without compromise on complex data. |
| Apr 2024 | Pre-seed | Y Combinator (lead); Liquid 2 Ventures | $500K | - | - |
Who has invested in Reducto?
14 investors have backed Reducto across its funding rounds, including Y Combinator, First Round Capital, BoxGroup, Liquid 2 Ventures, Benchmark and Andreessen Horowitz.
Lead investors include Andreessen Horowitz, Benchmark, First Round Capital and Y Combinator.
Reducto Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 4 | Lead | Apr 2024 | ||
| 3 | Lead | Oct 2024 | ||
| 3 | Participant | Oct 2024 | ||
| 2 | Participant | Apr 2024 | ||
| 2 | Lead | Apr 2025 | ||
| 1 | Participant | Oct 2024 | ||
| 1 | Participant | Oct 2024 | ||
| 1 | Participant | Oct 2024 | ||
| 1 | Lead | Oct 2025 | ||
| 1 | Participant | Oct 2024 | ||
| 1 | Participant | Oct 2024 | ||
| 1 | Participant | Oct 2024 | ||
This data is available for Pro users. Sign up to see all 14 Reducto investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialReducto Competitors
Reducto competitors include listed companies like TRS Information Technology and Airship AI, and private ones like Pliops, Exodigo, Pinecone and Labelbox.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | - | $650M | - | ||
| Private | $25M | - | $700M | 28.0x | ||
| Private | - | - | $750M | - | ||
| Private | $33M | - | $900M | 27.3x | ||
| Publicly listed | $76M | ($20M) | $1.7B | 19.7x | ||
| Publicly listed | $15M | ($5M) | $67M | 3.6x |
Reducto Public Comps
Reducto is still privately-owned, but its public comps include PKSHA Technology, Reconova Technologies, ExaWizards, Beijing Hanyi Innovation, Ropeok Technology Group, BTQ Technologies, Zhongfu Information, e-Hualu, Datasection and Vrain Solution.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $140M | $47M | 4.1x | 2.4x | 12.2x | 10.7x | |||
| $66M | ($8M) | 10.0x | - | (82.0x) | - | |||
| $77M | $13M | 6.6x | 5.7x | 39.3x | - | |||
| $28M | $5M | 15.6x | 13.9x | 89.9x | 50.9x | |||
| $23M | ($28M) | 18.6x | - | (15.2x) | - | |||
| $226K | ($18M) | 1720.6x | 266.9x | (21.8x) | - | |||
| $108M | $1M | 3.4x | 2.7x | 359.0x | - | |||
| $69M | ($310M) | 24.1x | - | (5.4x) | - | |||
This data is available for Pro users. Sign up to see all Reducto competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Reducto
| When was Reducto founded? | Reducto was founded in 2023. |
| Where is Reducto headquartered? | Reducto is headquartered in San Francisco, CA, United States. |
| Is Reducto publicly listed? | No, Reducto is a private, VC-backed company. |
| What is Reducto's valuation? | Reducto was last valued at $605M in its Series B in October 2025. |
| How much funding has Reducto raised? | Reducto has raised $108M across 4 funding rounds. |
| What was Reducto's last funding round? | Reducto's last funding round was a $75M Series B in October 2025, led by Andreessen Horowitz. |
| Who are Reducto's investors? | Reducto's investors include Y Combinator, First Round Capital, BoxGroup, Liquid 2 Ventures, Benchmark, Andrew Ofstad, SV Angel, Tracy Young, Andreessen Horowitz, Kulveer Taggar and 4 others. |
| Which companies are comparable to Reducto? | Companies comparable to Reducto include Pliops, Exodigo, Pinecone, Labelbox, TRS Information Technology and Airship AI. |
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