In a significant development within the artificial intelligence (AI) sector, San Francisco-based startup Recraft has announced a successful $30 million Series B funding round, led by Accel, with participation from Khosla Ventures and Madrona. This funding milestone follows the company’s earlier $12 million Series A round in 2024, spearheaded by Khosla Ventures. Recraft has reported surpassing $5 million in annual recurring revenue (ARR) and amassing a user base exceeding 4 million.
Recraft garnered industry attention when its AI image generation model, codenamed red_panda, outperformed established models such as OpenAI’s DALL-E and Midjourney on the Artificial Analysis benchmark last year. This model, internally referred to as V3, earned its nickname due to early users frequently generating images of the red panda, as explained by Recraft’s founder and CEO, Anna Veronika Dorogush.
The company’s proprietary models are developed from the ground up, positioning Recraft in direct competition with other image generation platforms like Midjourney, Adobe Firefly, Stable Diffusion, and Black Forest Labs. However, Recraft distinguishes itself by focusing on generating images tailored for branding purposes. This specialization enables brands to precisely position logos without additional editing and to create marketing materials such as brochures and posters that adhere to existing branding guidelines. Dorogush highlighted that existing image models often fall short in this area, placing Recraft in closer competition with design tools like Canva, which also offers AI-driven branding solutions.
Anna Veronika Dorogush, Recraft’s solo female founder and CEO, brings a wealth of experience from her tenure in machine learning at Yandex—a leading Russian search engine—along with previous roles at Google and Microsoft. Before venturing into AI model development, Dorogush pursued a career as a professional model while earning a degree in mathematics and computer science from one of Russia’s top universities. Reflecting on her modeling career, she noted that mere hard work, such as attending numerous casting calls, was insufficient for success. This insight has influenced her approach to building Recraft, emphasizing excellence in mission-critical areas, particularly in model development.
Recraft’s recent achievements underscore the company’s commitment to innovation in AI-driven image generation, particularly in the realm of branding. With substantial financial backing and a growing user base, Recraft is poised to make significant contributions to the AI and design industries.
