How much funding has Larridin raised?
Larridin, a San Francisco startup that measures what companies get back from their AI spending, has raised $30 million in a Series A round led by Pelion Ventures. The company announced the round in a statement on Monday. With the new money, Larridin has raised $47 million in total.
Andreessen Horowitz and Gradient Ventures, which backed Larridin's $17 million seed round, invested again. GFT, W23, Thayer, DG Daiwa Ventures, Alumni Ventures and Cougar Capital joined as new investors.
The company has moved quickly. Chief executive Russ Fradin told Business Insider's Aditi Bharade that Larridin went from one enterprise customer last December to 50 now. He said business picked up in the second quarter, when more companies started to worry about what AI was costing them. Fradin plans to double the company's 20-person team.
Tracking who spends what on AI
What does Larridin's software measure?
Larridin's software connects a company's AI tools, usage data and bills to the work its people and AI agents produce. The goal is to show where AI is paying off, where a company should invest more and which workflows to automate next.
The company said it has measured more than 2 billion AI sessions and tracked more than 82,000 workflows across its customers. It reports an average 47% rise in measurable team output among those customers, and a median of $2.4 million in AI spending optimized in the first year. Larridin said those figures are its own.
The company's examples point to how uneven AI use can be inside a single organization. At one customer, 92% of engineers used AI. Yet one engineer ran up roughly 65% of the team's AI bill in a single week, Larridin said. At another customer, two AI tools doing comparable work differed 66 times in cost per shipped change.
Ameya Kanitkar, Larridin's chief technology officer, told Business Insider that the platform analyzes employees' AI interactions without storing their contents. Instead, it produces scores and high-level insights.
A measurement firm for a new category
Fradin and co-founder Jim Larrison both worked at Comscore, the media measurement company. Fradin said that when a large amount of money moves into a category, an independent company usually emerges to measure it. Larridin wants to fill that role for AI.
Jeff Kearl, the Pelion general partner who led the round, said AI has gone from a small expense to one of the five to ten biggest line items on many company ledgers. He said executives have reacted to the change.
"All of a sudden they're like, 'Wow, that's a lot of money going to AI,'" Kearl said.
Larridin also launched a quarterly Engineering AI Impact Report, which draws on data from more than 1,000 engineers at its customers. According to the report, the share of AI-assisted pull requests rose from 35% in April to 62% in September. Over the same period, the median wait for a first human code review grew by 50%.
Why are companies scrutinizing their AI costs?
The findings arrive as other companies are also scrutinizing AI costs. Amazon has warned its engineers against "tokenmaxxing," and BNY now tracks its token spending. On Sunday, Elon Musk said the serving costs of Grok Bot were unsustainably high relative to its revenue.
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