LFG x Groq
Terms
Valuation: $2.2B (pre); $2.5B (post)
Round: Series D (preferred)
Structure: SPV into cap table entity (primary)
Management fee: 5% (one time)
Admin fee: 2% (one time)
Carry: 20%
Minimum: $25k
Timeline
ASAP: confirm final commitment amount
July 4: signature due
July 10: funds due
Next step
Confirm your commitment and onboard your investment here:
Click to Commit
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About Groq
Memo
Here is a confidential investment memo.
Company Overview
Develops hardware and software for AI and ML computations, specializing in inference processing.
Market Opportunity
UBS predicts $165 billion annual revenue in 2027 for AI-focused graphics processing, with NVIDIA holding 70% market share
Product
Offers a chip that excels in running AI models, providing speed advantages and scalability, with a focus on inference processing.
Competitive Advantage
Extremely fast and cheap, making it a game-changer in the industry.
Business Model
Generates revenue through chip sales, cloud API, and cloud services, including a developer playground and Tokens-as-a-Service.
Traction
On track to deploy 42,000 chips this year, 1 million next year, with potential to increase to 220,000 and 1.5 million respectively.
Management
Founded by an expert who built the Tensor Processing Unit (TPU) at a leading Cloud Service Provider.
Funding
Raised $350 million in Series C (2021) at a $1.1 billion valuation, led by Tiger Global and D1 Capital.