In a recent report by Fortune, startup Profound has reached a $1 billion valuation following a $96 million Series C funding round, highlighting growing investor confidence in marketing tools designed for the AI era.
The round was led by Lightspeed Venture Partners, with participation from Sequoia Capital, Kleiner Perkins, Evantic Capital, Saga VC, and South Park Commons. This brings Profound’s total funding to $155 million. The company, founded just 18 months ago, is positioning itself around a major shift in how brands are discovered online.
Focus on AI Answer Platforms Instead of Search Engines
Profound is built on the belief that traditional search engines are becoming less central to how consumers find information. Instead of browsing multiple links, users are increasingly relying on AI systems such as ChatGPT, Gemini, and Perplexity to provide direct answers.
Profound’s platform helps companies track how these AI systems describe their brand. It allows businesses to see when they are mentioned, how they are presented, and how competitors compare.
CEO and cofounder James Cadwallader said the company is focused on helping brands understand and influence how AI systems represent them. He believes managing AI generated brand presence will become an essential part of marketing.
Helping Brands Measure and Improve AI Visibility
The company’s software analyses millions of prompts and responses to provide insights into brand visibility across AI platforms. This allows companies to identify gaps and improve how often they appear in AI generated recommendations.
This has become more important as AI systems typically present one summarised answer rather than multiple search results. This reduces opportunities for brands to be discovered unless they are included in those answers.
Lightspeed partner Sachin Patel said this represents a major shift in consumer behaviour, with attention moving away from traditional search engines toward AI answer platforms.
Rapid Growth and Enterprise Adoption
Profound has already gained significant traction. The company reports more than 700 enterprise customers and says it works with 10 percent of Fortune 500 companies. These include major organisations such as Target, Walmart, Ramp, MongoDB, U.S. Bank, and Figma.
The company also found that AI generated answers frequently change. Its research suggests that up to 90 percent of sources referenced by AI systems can vary over time. This means companies must actively manage their presence across different AI platforms rather than relying on one time optimisation.
Evolution of SEO Rather Than Its Replacement
Cadwallader does not see AI as replacing search engine optimisation, but as an expansion of it. He believes the principles of SEO still apply, but the focus is shifting toward influencing AI systems rather than search rankings.
This shift is also changing marketing roles. Some traditional SEO specialists are moving toward more technical positions that involve data analysis, automation, and working directly with AI systems.
Profound has also launched a new product called Profound Agents, designed to help companies generate marketing content aligned with their brand voice.
Investment Reflects Confidence in Long Term Opportunity
Despite having fewer than 120 employees, Profound is expanding and investing in hiring. Investors see the company as part of a larger shift in how marketing will function in the future.
Lightspeed’s Patel said the speed of Profound’s growth and enterprise adoption reflects a real and immediate change, rather than a future possibility.
Profound’s rapid rise and billion dollar valuation reflect increasing recognition that artificial intelligence is changing how consumers discover brands.
As AI platforms become a primary source of information, companies may need new tools and strategies to manage how they are represented. Profound’s growth suggests that services focused on AI visibility could become an important part of the marketing technology landscape.
