SF's Encord Raises $60M for AI Data
San Francisco-based Encord has secured a $60 million Series C funding round led by Wellington Management. The company, which provides AI-native data infrastructure, has seen a 10x growth in revenue from its physical AI segment over the past year, bringing its total funding to $110 million.
This latest funding round boosts Encord's valuation to $550 million. The financing included participation from existing investors like Y Combinator and CRV, as well as new backers Bright Pixel Capital and Isomer Capital. The company was founded in 2020 by co-CEOs Ulrik Stig Hansen and Eric Landau, who observed that machine learning teams spent upwards of 80% of their time dealing with data rather than building models. Their platform is designed to automate the full data lifecycle, from organizing and labeling to evaluation. Encord's focus is "physical AI," which enables machines to interact with the real world using sensors like cameras, LiDAR, and audio. Unlike generative AI trained on internet text and images, physical AI powers systems like autonomous vehicles, delivery drones, and manufacturing robots. The primary challenge in this field is not the size of the AI model but the readiness of the data. Physical AI relies on complex, sensor-rich datasets—including video, audio, and telemetry—that legacy platforms were not built to handle. Encord has demonstrated significant traction, with data managed on its platform growing from one to five petabytes over the last year. Its client roster of over 300 teams includes major players in the physical AI space such as Woven by Toyota, Zipline, and Skydio. The investment will be used to scale its platform and expand into new markets as physical AI systems move from development into full production. The market is projected to grow to over $30 billion within the next four years, with an estimated 400 million AI-powered robots expected to come online.
