Otter.ai closes $320 million in repayable financing from General Catalyst

Otter.ai has closed $320 million in growth financing from General Catalyst’s Customer Value Fund to fund enterprise growth, international expansion and product development.

Unlike a conventional venture round, the transaction does not exchange capital for equity. CEO Sam Liang said Otter must repay the financing with interest, using revenue generated by the sales and marketing spending it funds. That structure avoids diluting existing shareholders, he said.

General Catalyst describes its Customer Value strategy as non-dilutive capital that pre-funds customer acquisition. In its general model, the fund receives a capped entitlement tied to customer value created by the financed spending and is paid when the company receives payment. General Catalyst did not disclose whether every element of that model applies to Otter’s agreement.

Liang said Otter plans to double or triple its sales and marketing budget, expand its sales team and step up marketing outside the United States. The company also identified go-to-market execution and product innovation as uses of the financing.

Otter says it has more than 40 million users, has transcribed more than 1 billion meetings and is used by teams at more than 86% of Fortune 500 companies. It also claims its products have generated more than $1.5 billion in customer return on investment. The opened sources did not independently audit those figures.

The parties did not disclose the financing’s interest rate, repayment cap, maturity, draw schedule, covenants or the specific revenue streams assigned to repayment.