Modal Labs attracts $16M Series A for cloud-based infrastructure

Modal Labs, an all-in-one platform for cloud-based infrastructure, has a unique focus on generative AI applications.

Here's a quick roundup of Modal Labs' journey and offerings:

• Funding Triumph: Modal Labs has successfully procured $16M in Series A funding. The round was led by Redpoint Ventures, with significant contributions from Amplify Partners, Lux Capital, and Definition Capital. This substantial financial leap brings Modal's total raised funds to a remarkable $23M.

• Expansion Plans: The company's CEO and co-founder, Erik Bernhardsson, intends to allocate a large portion of the acquired funds toward hiring. By the close of this year, Modal aims to expand its team from 14 to 17, welcoming software engineers in particular.

• Inception of Modal Labs: Bernhardsson, after recognizing a deficiency in existing data engineering tools following his departure from Better.com in 2021, began working on a solution. By early 2022, he had raised a $7M seed round and assembled a team, thus birthing Modal Labs.

• Modal Labs' Solution: The Modal platform empowers data teams and engineers to execute code effortlessly in the cloud. Built-in Rust, the platform can scale to hundreds of GPUs swiftly, delivering a dashboard with real-time logs and metrics.

• Vision for the Future: Modal is committed to developing an end-to-end tech stack for data teams, tapping into the escalating AI adoption and the growing significance of data in software stacks.

Despite its early stage, Substack and Ramp have taken notice of Modal, employing its services for large data projects and AI-powered transcription features.

Modal's monthly revenue is reportedly already in the "six-digit" range, signaling a promising start for the young startup.