Modal raises $355M series C

Published May 27, 2026 by The Daily Scout

- Modal said on May 21 it raised $355 million in a Series C, valuing the AI cloud startup at $4.65 billion post-money. - Modal said annualized revenue topped $300 million after growing fivefold since September; General Catalyst and Redpoint led the round with Menlo, Accel and Bain. - Modal said the new capital will fund product expansion and hiring as it builds AI infrastructure used for inference, training and sandboxes.

Why it matters

Modal said on May 21 that it raised $355 million in a Series C financing round at a $4.65 billion post-money valuation, extending a run of investor backing for companies selling AI infrastructure rather than foundation models. The New York-based company said it had grown fivefold since September and surpassed $300 million in annualized revenue. General Catalyst and Redpoint led the round, while Menlo Ventures, Bain Capital Ventures and Accel joined as new investors. Existing backers also participated, Modal said. ### Why did this funding round draw attention beyond another AI startup raise? The $355 million round stood out because Modal is not selling a flagship model or consumer chatbot. Modal sells cloud infrastructure for AI workloads — including inference, training, batch processing and secure sandboxes — through a code-first platform aimed at developers. Modal said in its announcement that it started from the view that cloud systems built for traditional web applications were a poor fit for AI workloads. Its pitch is that developers can write in Python and scale compute, including GPUs, without managing the underlying infrastructure directly. ### Which investors wrote the checks, and what numbers did Modal disclose? General Catalyst and Redpoint led the Series C, Modal said, with Menlo Ventures, Bain Capital Ventures and Accel joining as new investors. (modal.com) The company said all of its existing major investors also participated in the financing. The company disclosed two operating figures that framed the raise: fivefold growth since September and more than $300 million in annualized revenue. (modal.com) Modal did not, in the materials reviewed, provide a full revenue breakdown, profitability figure or customer count tied specifically to the round announcement. ### What exactly does Modal sell to developers and AI teams? Modal’s website describes the product as “AI infrastructure that developers love,” offering autoscaling compute, GPU access, logging, observability and support for running inference, training jobs and sandboxed code execution. (modal.com) The company says users can scale from zero to more than 1,000 GPUs and route workloads across clouds and regions. Its documentation and product pages show a platform built around serving large language models, running fine-tuning jobs, batch inference, audio and image workloads, and secure execution environments for code agents. (modal.com) Customer materials on Modal’s site also describe use in production inference and reinforcement learning infrastructure. ### How fast has Modal grown since its earlier rounds? Modal’s previous funding disclosures show a much smaller company less than a year earlier. (modal.com) In September 2025, the company announced an $87 million Series B at a $1.1 billion post-money valuation. In October 2023, it announced a $16 million Series A financing round that brought total funding at the time to $23 million. The company has also expanded outside the United States. (modal.com) In May 2025, Modal said data orchestration startup Twirl was joining the company and that the combined team would grow Modal’s footprint in Europe from Stockholm. ### What comes next for the company after this raise? Modal said the new financing will support continued product development as it builds what it called “the production cloud for AI.” Its current product lineup includes support for H100, A100, A10G and B200-class GPU workloads, according to its website and documentation. (modal.com) The company’s next visible milestones are likely to come through product rollouts and hiring rather than a public-market filing. (modal.com) Modal’s site says the platform is already being used for inference, training and secure sandboxes, and the company is continuing to market programs for startups and academics alongside its enterprise infrastructure offerings. (modal.com 1) (modal.com 2)

Key numbers

Modal said on May 21 it raised $355 million in a Series C, valuing the AI cloud startup at $4.65 billion post-money.
Modal said annualized revenue topped $300 million after growing fivefold since September; General Catalyst and Redpoint led the round with Menlo, Accel and Bain.
Modal said on May 21 that it raised $355 million in a Series C financing round at a $4.65 billion post-money valuation, extending a run of investor backing for companies selling AI infrastructure rather than foundation models.
The New York-based company said it had grown fivefold since September and surpassed $300 million in annualized revenue.

What happens next

Modal said on May 21 that it raised $355 million in a Series C financing round at a $4.65 billion post-money valuation, extending a run of investor backing for companies selling AI infrastructure rather than foundation models.
(modal.com) In May 2025, Modal said data orchestration startup Twirl was joining the company and that the combined team would grow Modal’s footprint in Europe from Stockholm.
What comes next for the company after this raise?

Sources

Quick answers

What happened in Modal raises $355M series C?

Modal said on May 21 it raised $355 million in a Series C, valuing the AI cloud startup at $4.65 billion post-money. Modal said annualized revenue topped $300 million after growing fivefold since September; General Catalyst and Redpoint led the round with Menlo, Accel and Bain. Modal said the new capital will fund product expansion and hiring as it builds AI infrastructure used for inference, training and sandboxes.

Why does Modal raises $355M series C matter?

Modal said on May 21 that it raised $355 million in a Series C financing round at a $4.65 billion post-money valuation, extending a run of investor backing for companies selling AI infrastructure rather than foundation models. The New York-based company said it had grown fivefold since September and surpassed $300 million in annualized revenue. General Catalyst and Redpoint led the round, while Menlo Ventures, Bain Capital Ventures and Accel joined as new investors. Existing backers also participated, Modal said. Why did this funding round draw attention beyond another AI startup raise? The $355 million round stood out because Modal is not selling a flagship model or consumer chatbot. Modal sells cloud infrastructure for AI workloads — including inference, training, batch processing and secure sandboxes — through a code-first platform aimed at developers. Modal said in its announcement that it started from the view that cloud systems built for traditional web applications were a poor fit for AI workloads. Its pitch is that developers can write in Python and scale compute, including GPUs, without managing the underlying infrastructure directly. Which investors wrote the checks, and what numbers did Modal disclose? General Catalyst and Redpoint led the Series C, Modal said, with Menlo Ventures, Bain Capital Ventures and Accel joining as new investors. (modal.com) The company said all of its existing major investors also participated in the financing. The company disclosed two operating figures that framed the raise: fivefold growth since September and more than $300 million in annualized revenue. (modal.com) Modal did not, in the materials reviewed, provide a full revenue breakdown, profitability figure or customer count tied specifically to the round announcement. What exactly does Modal sell to developers and AI teams? Modal’s website describes the product as “AI infrastructure that developers love,” offering autoscaling compute, GPU access, logging, observability and support for running inference, training jobs and sandboxed code execution. (modal.com) The company says users can scale from zero to more than 1,000 GPUs and route workloads across clouds and regions. Its documentation and product pages show a platform built around serving large language models, running fine-tuning jobs, batch inference, audio and image workloads, and secure execution environments for code agents. (modal.com) Customer materials on Modal’s site also describe use in production inference and reinforcement learning infrastructure. How fast has Modal grown since its earlier rounds? Modal’s previous funding disclosures show a much smaller company less than a year earlier. (modal.com) In September 2025, the company announced an $87 million Series B at a $1.1 billion post-money valuation. In October 2023, it announced a $16 million Series A financing round that brought total funding at the time to $23 million. The company has also expanded outside the United States. (modal.com) In May 2025, Modal said data orchestration startup Twirl was joining the company and that the combined team would grow Modal’s footprint in Europe from Stockholm. What comes next for the company after this raise? Modal said the new financing will support continued product development as it builds what it called “the production cloud for AI.” Its current product lineup includes support for H100, A100, A10G and B200-class GPU workloads, according to its website and documentation. (modal.com) The company’s next visible milestones are likely to come through product rollouts and hiring rather than a public-market filing. (modal.com) Modal’s site says the platform is already being used for inference, training and secure sandboxes, and the company is continuing to market programs for startups and academics alongside its enterprise infrastructure offerings. (modal.com 1) (modal.com 2)