Reducto funding: Every round, investor, and valuation (2026)

Reducto sells an API that reads documents for AI. It takes PDFs, spreadsheets, scanned forms, and images, and turns them into clean, structured data that a large language model can work with. Banks, law firms, insurers, and AI startups use it to feed contracts, filings, and claims into their own AI products.

Reducto has raised about $108 million across four announced rounds since it went through Y Combinator in early 2024, all of it equity. Its latest announced round, a $75 million Series B led by Andreessen Horowitz in October 2025, reportedly valued the company at about $600 million.

The company may already be worth more. Filings tracked by the private-market platform Forge Global show a $51 million Series B-1 in August 2026 that Reducto has not announced. Let's dive into Reducto's funding history.

Reducto raised its seed, Series A, and Series B in about a year. Each round was led by a new firm, while every earlier backer came back.

Adit Abraham and Raunak Chowdhuri founded Reducto in 2023 and joined Y Combinator's Winter 2024 batch. Abraham is CEO and Chowdhuri is CTO. They aimed at a narrow problem that every AI team was hitting: language models are only as good as the text they receive, and most business knowledge sits in messy PDFs.

Standard text extraction breaks on tables, charts, footnotes, and multi-column layouts. A model that misreads one cell in a balance sheet gives a confident wrong answer. Reducto pitched itself as the layer that gets that step right.

First Round Capital led the seed, which Reducto announced in October 2024. The round pulled in a long list of founder angels, including Dropbox co-founder Arash Ferdowsi and Airtable co-founder Andrew Ofstad. Reducto went from zero to seven-figure annual recurring revenue within about six months of launch, according to First Round.

Benchmark led the Series A in April 2025, with partner Chetan Puttagunta backing the deal. His thesis was that much of the Fortune 500's finance work still runs on paper, and that none of it can be automated until a machine reads it accurately.

The round brought Reducto's total to about $33 million. The company said it would use the money for research, hiring, and enterprise sales. Customers at the time included AI startups such as Harvey, Vanta, and Scale AI, which build their own products on top of Reducto's output.

The Series B came less than six months later. Andreessen Horowitz led it, with general partner Jennifer Li on the deal, and every earlier institutional investor took part. The Information reported that the round tripled Reducto's valuation.

Reducto had barely touched its earlier money. The company had burned only about $1 million from founding to the Series B, according to Contrary Research and Abraham's own comments on a podcast. Its monthly page volume had grown sixfold since the Series A, and it had processed more than a billion pages in total.

Contrary counts Reducto among only three Y Combinator startups to raise a Series B within 18 months of finishing the program.

Reducto has not announced a round since October 2025. Its own press release about a New York office in September 2026 still said it had raised more than $108 million.

Forge Global, which builds its figures from company filings such as certificates of incorporation, lists a Series B-1 dated August 28, 2026. The investors are not disclosed. Until Reducto confirms it, the round counts as reported rather than announced, and the totals in this article use the company's figure.

Reducto has never published a valuation. The figures below come from press reports and private-market data, and they show the value roughly tripling between the Series A and the Series B.

The Series A mark is an inference. The Information said the Series B tripled the valuation, which puts the April 2025 mark at about a third of the Series B price. Forge Global's own estimate for the Series A matches it.

The Series B price was steep for a company of Reducto's size. Contrary reported revenue of about $5 million around the time of the round, reached before Reducto had hired a sales team. The Series B price works out to roughly 120 times that revenue, a price that only makes sense if page volume keeps compounding.

If the Series B-1 figure holds, Reducto became a unicorn less than three years after it was founded. That would put it in the same bracket as other AI developer tools, such as LangChain's billion-dollar Series B, which sell to engineers building AI products rather than to end users.

Reducto's cap table is small and loyal. Five institutions account for every announced round, and no corporate or strategic investor has joined.

Andreessen Horowitz led the Series B and is the largest recent check. Jennifer Li is listed as a Reducto board member on several investor databases, though the company has not confirmed board seats. The firm's investment memo singled out Reducto's Edit API, which writes data back into forms and documents, as the step that turns a read-only tool into a read-write one.

Benchmark led the Series A and joined the Series B, with Chetan Puttagunta as the partner on the deal. The firm also led the seed of LangChain, another tool that sits between language models and a company's own data.

First Round Capital led the seed and has followed on in every round since. Partner Liz Wessel led the deal.

Y Combinator invested through its standard accelerator deal and has joined each later round. BoxGroup came in at the seed and has also stayed in for the Series A and Series B. SV Angel and Liquid 2 Ventures took part in the seed only.

The seed carried an unusual number of founders who had built document-heavy software. Arash Ferdowsi co-founded Dropbox with Drew Houston, who still holds most of the voting power in Dropbox's founder-controlled ownership. Andrew Ofstad co-founded Airtable, which spent most of its life venture-backed before Airtable's sale to Bending Spoons in 2026.

Ralph Gootee and Tracy Young, co-founders of construction software maker PlanGrid, joined too. So did Kulveer Taggar of Zeus, Richard Aberman of WePay, and JJ Fliegelman of WayUp.

No investor has a strategic deal with Reducto. None of them sells compute, owns a cloud, or resells the product. Their return depends on Reducto becoming the default layer between documents and AI models, which is why the investor memos focus on accuracy and on new products such as Edit rather than on distribution.

Reducto has said its Series B pays for model research, new products, enterprise adoption, and hiring across engineering, research, and sales. The company spends far less than the AI labs whose models it feeds, but the mix of spending has shifted from people toward its own models.

Reducto's first product combined existing tools. Computer vision mapped the layout of a page, vision-language models read each region, and a checker model corrected mistakes. Reducto called this Agentic OCR.

In September 2026 the company launched r-1, a parsing model it says it built from scratch. Reducto claims r-1 makes 20% fewer errors than Agentic OCR and charges a flat 1 cent a page, where its older pipelines cost 3 to 6 cents. A smaller r-1 mini, plus automatic routing that sends each page to the cheapest model that can handle it, is due later in 2026.

Owning the model matters for margins. Every page Reducto parses costs it inference compute, so a cheaper model that is also more accurate lets the company cut prices without giving up gross profit.

The money is also widening what Reducto sells. Alongside Parse, its core product, the company now offers Extract and Deep Extract for pulling fields from documents, Split and Classify for sorting long files, and Edit for filling in forms. Pipelines chains these steps together, and Studio is a no-code workspace for building them.

Pricing is usage-based, quoted per 1,000 pages. Parsing with r-1 costs $10 per 1,000 pages and Edit costs $60, so the newer products earn far more per document than plain parsing. In July 2026, Deep Extract ranked first on LongExtractBench, an independent extraction benchmark run by micro1.

Reducto's biggest customers are regulated businesses, and they buy on security as much as accuracy. The company has spent on SOC 2 Type II, HIPAA agreements, zero data retention, data residency in the EU and Australia, and on-premises and air-gapped versions of the product.

Reducto's founders sold the product themselves at first, and the company began building a sales team after the Series B. It listed on AWS Marketplace in February 2026, which lets enterprises pay for Reducto out of the cloud budgets they have already committed to Amazon, a channel that sits at the center of how Amazon's cloud business makes money. In September 2026 it opened a New York office to sell to banks, insurers, and law firms on the East Coast.

The customer list now includes AI startups and large enterprises. Harvey, the legal AI company whose ownership sits with its founders and VCs, uses Reducto, as do Vanta, Airtable, Toast, Mercor, and Legora. Reducto also says it has a seven-figure contract with a Fortune 10 company and works with a top-five hedge fund.

In May 2026 Reducto bought Opennote, a Y Combinator edtech startup, for an undisclosed price. It was an acqui-hire: Reducto took the team for its work on collaborative editing, search, and agentic retrieval, and Opennote's own product is being shut down.

Reducto's growth push is aimed at regulated enterprises: finance, insurance, legal, healthcare, and government. These buyers process the most documents and pay the most for accuracy, and the New York office and the AWS listing are both built to reach them. Reducto also depends on AI startups that are growing fast on their own funding, as Vanta's funding history and Mercor's rapid funding climb show. Their page volume rises and falls with their own growth.

The product is moving from reading documents to acting on them. The r-1 model family, model routing, Edit, and Pipelines all push Reducto from a single parsing step toward full document workflows. That matters for revenue, because at 1 cent a page Reducto would need tens of billions of pages a year to reach a large business on parsing alone.

The main risk is that the parsing step stops being a separate product. Frontier models read PDFs better with each release, and cheaper OCR models are arriving from the labs themselves. Mistral, the French lab where ASML is the largest shareholder, lists its OCR model at well below Reducto's price per page. The company has no announced IPO plans. If the Series B-1 is confirmed, its next raise will be priced on whether Reducto's own models and workflow products keep it ahead of the foundation models it was built to feed.

Reducto has raised about $108 million in announced funding, all of it equity. That covers four rounds: its Y Combinator investment in 2024, an $8.4 million seed in October 2024, a $24.5 million Series A in April 2025, and a $75 million Series B in October 2025. Forge Global also reports an unannounced $51 million Series B-1 in August 2026, which would bring the total to about $159 million.

Reducto's lead investors are Andreessen Horowitz, Benchmark, and First Round Capital. Y Combinator and BoxGroup have joined every round since the seed, and SV Angel and Liquid 2 Ventures took part in the seed. Angel investors include Dropbox co-founder Arash Ferdowsi, Airtable co-founder Andrew Ofstad, and PlanGrid co-founders Ralph Gootee and Tracy Young.

Reducto was valued at about $600 million in its October 2025 Series B, according to The Information. Forge Global reports a $1.04 billion post-money valuation after a $51 million Series B-1 in August 2026, but Reducto has not confirmed that round or the valuation.

No. Reducto is private and has not filed for an IPO. Its shares are not traded on any stock exchange.

Reducto is owned by its founders, employees, and investors. Co-founders Adit Abraham (CEO) and Raunak Chowdhuri (CTO) run the company. The largest outside holders are likely Andreessen Horowitz, Benchmark, and First Round Capital, which led its three priced rounds, though exact stakes are not public.