Seattle-based artificial intelligence startup Defined.ai, formerly DefinedCrowd, reduced its workforce and fell short of growth projections in 2021, according to a company email.
While the company declined to clarify its employment numbers for the Business Journal, PitchBook puts Defined's workforce at 278 employees as of January. That was down from reportedly more than 400 employees in December 2020.
Last June, Defined co-founder and CEO Daniela Braga told the Business Journal the startup had about 300 workers across offices in Seattle, Portugal and Tokyo.
In an Aug. 27, 2021, companywide email obtained by the Business Journal, Braga wrote: "In the fiscal year of 2020 he (sic) executed a very aggressive hiring plan that aligned with a significant growth forecast we had, in alignment with our investors. As you all know that investment didn't turn into the appropriate ROI. ... The reality is that the numbers don't lie and unfortunately, because of that, we had to reduce our workforce."
The shrinking workforce follows Defined's swift rise.
The startup, which was founded by Braga and Amy Du in 2015, offers correctly labeled data to help train clients' artificial intelligence and machine learning technology, and its clients include Bose, Toshiba and Salesforce. It grew from 75 employees in February 2019 to 412 employees in December 2020, according to PitchBook data.
Defined raised a $50.5 million Series B in May 2020 and, according to PitchBook, added another $15 million in funding in January 2022.
"While as a private company we have a policy of not sharing financial information with the public, we can confirm that we’ve recently raised equity funding," the company said in a statement to the Business Journal last Thursday.
In her email to staff last summer, Braga also noted some key resignations, including Chief Financial Officer Bob Parker. According to Parker's LinkedIn profile, his stint with the company lasted six months. Parker could not be reached for comment and his new company, Circulor, did not respond to an inquiry from the Business Journal.
Defined issued a statement on Feb. 2 to the Business Journal regarding the layoffs last year:
"As a startup introducing industry-first technology, there are times where strategic shifts occur that may require personnel and other resources to be adjusted and re-allocated in order to support those changes — and ultimately, to meet rapidly evolving market demand. ... Additionally, we actively seek to foster a culture where all our employees can grow their careers while making a real impact. This is underscored by the fact Defined.ai is one of the few AI companies to be female founded and led, and we’re deeply grateful for all the hard work that all employees, past and present, have contributed to our success."
Braga and Defined have garnered numerous accolades in recent years. Braga has been named to President Joe Biden's National Artificial Intelligence Research Resource Task Force, and she won the Visionary Leadership Award in 2021 from the Business Journal. Defined made Deloitte's Technology Fast 500 List in 2020, and in January, GeekWire named it as one of its startups to watch.
Defined.ai rebranded from DefinedCrowd in November. In an announcement about the rebrand, the company touted its transition from a training data service to a more comprehensive tool for AI technology. Defined also said in the release its services would now include the ability to buy labeled data, sell data and order custom-built datasets from the Defined team.
