AI Model Surpasses DALL-E and Midjourney, Secures $30M Funding

Recraft Secures $30 Million in Series B Funding

Recraft, the company developing a cutting-edge image generation model, has announced a $30 million Series B funding round. The investment was led by Accel, as reported exclusively to TechCrunch.

Khosla Ventures and Madrona also participated in this funding round. Recraft, headquartered in San Francisco, had previously secured a $12 million Series A led by Khosla Ventures in 2024.

Company Growth and Performance

The startup reports having surpassed $5 million in Annual Recurring Revenue (ARR) and now boasts a user base of 4 million. This demonstrates significant traction and market demand for their technology.

The "red_panda" Model and Industry Recognition

Recraft initially gained prominence when its model, internally known as “red_panda,” achieved top rankings on the Artificial Analysis benchmark. This success was achieved with Recraft’s V3 model.

The model’s nickname originated from a curious trend observed during its early testing phase. Founder and CEO Anna Veronika Dorogush explained to TechCrunch that users consistently generated images featuring the adorable animal.

Competitive Landscape and Core Strengths

Recraft distinguishes itself by building its own models from the ground up. This positions them as a competitor to established image generators such as Midjourney, Adobe Firefly, Stable Diffusion, and Black Forest Labs.

Recraft’s AI particularly shines in its ability to create images tailored for brand applications. This includes precise logo placement and the effortless generation of marketing materials aligned with existing brand guidelines.

Existing image models often struggle with these nuanced branding requirements. This is where Recraft offers a distinct advantage, bringing them into competition with design platforms like Canva, which also integrates AI for branding purposes.

Leadership and Founder's Background

Recraft is noteworthy for being led by a solo female founder and CEO, Anna Veronika Dorogush. She established Recraft after gaining extensive experience in machine learning at Yandex, a major Russian technology company.

Prior to founding Recraft, Dorogush also held positions at Google and Microsoft. Her diverse background provides a strong foundation for leading the company’s technological advancements.

Before her work in AI, Dorogush pursued a career as a professional model while simultaneously earning a degree in mathematics and computer science from a leading Russian university.

This experience taught her a valuable lesson about the importance of focused effort. She realized that sheer hard work alone isn’t sufficient for success.

“I learned that relentless effort isn’t the sole determinant of success,” Dorogush stated. “When building a company, it’s crucial to excel in areas that are fundamentally important to our mission.”

“For us, that means prioritizing the development of exceptional models. We’ve dedicated our resources to achieving excellence in this domain.”