Deepgram, a San Francisco-based voice artificial intelligence platform for enterprises, is looking for technology acquisitions, CEO and co-founder Scott Stephenson told Mergermarket.

The company is interested in acquiring businesses with strong R&D in fields such as model training and data, among others, the CEO said. It is looking at small players with about 10 employees, he added.

Deepgram is seeing an average of one candidate per week, Stephenson said. The company spends time on M&A, he added, but could not say when the next deal might close.

Revenue is undisclosed but Stephenson said it has been doubling year-on-year, and the trend is accelerating. The business is cash flow positive and has more than 100 employees, he added.

Potential deals will be financed with cash and equity, he said.

In June 2024, Deepgram announced the acquisition of 100% of Poised, which offers Poised AI Coach service, an advanced communication tool that leverages voice AI to provide real-time actionable feedback during online meetings.

Deepgram aims to go public in two to three years’ time, the CEO said. He said it has a leadership position in the perception market and aims to reach a similar positioning in the segments of voice agent and text-to-speech before going public, he explained. The perception market refers to technologies that allow voice assistants to accurately interpret and understand human speech.

In November 2022, Deepgram raised USD 47m in equity in a round led by Madrona to complete a Series B round of USD 72m. Other investors included Alkeon, Tiger Global, Citi Ventures and NVIDIA.

The company has been launching new products in recent months and will now focus on execution, the CEO said. This week Deepgram announced the launch of Nova-3, its most advanced speech-to-text (STT) model to date, which provides unmatched accuracy in challenging audio environments while offering flexible, self-service customization to tailor results for industry-specific needs, according to the press release.

Deepgram’s platform helps developers to build speech-to-text, text-to-speech and full speech-to-speech offerings. More than 200,000 developers build with Deepgrams’ voice-native foundational models. The company’s customers include technology-independent software vendors that build voice products or platforms, co-sell partners working with enterprises and enterprises, the CEO said. Deepgram has over 450 enterprise customers, which include Twilio [NYSE:TWLO] and Jack in the Box [NASDAQ:JACK].