Exclusive to members of the LFG network 🚀

LFG Ventures x Groq

CONFIDENTIAL

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:

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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.

Press

  1. AI chip race: Groq CEO takes on Nvidia, claims most startups will use speedy LPUs by end of 2024

  2. AI chip startup Groq forms new business unit, acquires Definitive Intelligence

  3. AI startup Groq gears up for new funding

Learn more at groq.com

To invest, commit here before August 18th.

©2024 LFG VENTURES

Please note that nothing herein constitutes or should be construed as financial or investment advice. While the information is believed to be accurate, it may include estimates, errors, or inaccuracies. You are responsible for conducting your own due diligence. You are solely responsible for determining whether any investment, investment strategy, security, or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. Investors and users should consult with licensed legal professionals and investment advisors for any legal, tax, insurance, or investment advice. Investing in private is extremely speculative and involves a high degree of risk. You should not invest unless you are in a position to lose the entire amount of your investment. No public market currently exists for this opportunity, and there can be no assurance that such a public market will ever exist.