SAN JOSE, CA - Aug 20, 2025 - Upstage, a leading AI company specializing in enterprise-grade generative AI solutions, today announced the closing of a $45 million Series B bridge funding round. Led by Hanwha Investment & Securities, with participation from existing investors SK Networks, KT, Korea Development Bank, and new investors Stonebridge Ventures and Mirae Asset Venture Investment, the round brings Upstage’s total funding to over $145 million.
“This investment fuels our mission to empower enterprises with cutting-edge AI solutions,” said Sung Kim, CEO of Upstage.
Hanwha Investment & Securities’ representative noted, “Upstage’s innovative LLMs and document AI are transforming how businesses operate.” The funding will accelerate global expansion and platform development, positioning Upstage as a leader in the AI software market.
Funding Details
Upstage raised $45 million in its Series B bridge funding round, led by Hanwha Investment & Securities. Existing investors, including SK Networks, KT, Korea Development Bank, Shinhan Venture Investment, Hana Ventures, Mirae Asset Venture Investment, Industrial Bank of Korea, SBVA, Primer Sazze Partners, Company K Partners, and Premier Partners, also participated, alongside new investor Stonebridge Ventures. The all-equity round reflects strong confidence in Upstage’s enterprise AI solutions, particularly its large language models (LLMs) and document AI technologies.
Strategic Goals and Use of Funds
Upstage will deploy the $45 million to achieve the following strategic objectives:
- Platform Enhancement: Advance its Solar LLM and document AI solutions, improving performance, scalability, and enterprise integration capabilities.
- Global Market Expansion: Scale operations in North America, Europe, and Asia, targeting enterprises in finance, healthcare, and manufacturing.
- Team Growth: Expand engineering, data science, and go-to-market teams to support platform development and client onboarding.
- R&D Investment: Accelerate research into next-generation LLMs and AI-driven document processing to maintain technological leadership.
- Partnership Development: Strengthen collaborations with cloud providers and enterprise software vendors to enhance platform interoperability.
Historical Funding and Growth
Upstage has raised over $145 million since its founding in 2020. Below is a summary of its funding history:
| Round | Year | Amount Raised | Valuation | Lead Investors |
|---|---|---|---|---|
| Series A | 2022 | $27M | Not disclosed | SBVA, Primer Sazze Partners |
| Series B | 2024 | $72M | Not disclosed | SK Networks, KT, Korea Development Bank |
| Series B Bridge | 2025 | $45M | Not disclosed | Hanwha Investment & Securities |
Since its inception, Upstage has become South Korea’s most-funded AI software company, with its Solar LLM achieving GPT-4-level performance. The company has grown its client base across industries, reporting a 50% year-over-year revenue increase in 2024, driven by demand for its document processing and LLM solutions.
Upstage’s Technology
Upstage’s flagship offerings include the Solar LLM, a large language model delivering GPT-4-level performance with superior speed and cost-efficiency, and its document AI platform, which automates complex document processing tasks. The platform leverages advanced natural language processing and machine learning to extract insights, streamline workflows, and enhance decision-making for enterprises. Key features include high-accuracy text extraction, automated data categorization, and seamless integration with enterprise systems, enabling businesses to reduce operational costs and improve efficiency.
Industry Impact and Challenges
Upstage’s AI solutions are transforming enterprise workflows, particularly in document-heavy industries like finance and healthcare, by reducing processing times and improving accuracy. Clients report up to 40% cost savings in document management. However, challenges include competing with global AI giants like OpenAI and Anthropic, ensuring data privacy and compliance with regulations like GDPR, and scaling integrations across diverse enterprise systems. Maintaining cost-efficiency while advancing LLM performance is also critical.
Market Context and Industry Trends
The $45 million Series B bridge round aligns with the booming AI software market, projected to reach $250 billion by 2028, driven by demand for generative AI and automation. Recent investments, such as $250 million for EliseAI and $43 million for Medallion, reflect strong investor interest in AI-driven enterprise solutions. Upstage’s focus on LLMs and document AI positions it to capitalize on the trend toward intelligent automation, as enterprises seek scalable, cost-effective AI tools.
Stakeholder Insights
Investors view Upstage as a leader in enterprise AI, with its Solar LLM and document AI solutions addressing critical needs for automation and efficiency. The participation of Hanwha Investment & Securities and established investors like SK Networks signals confidence in Upstage’s global potential. Analysts note that success will depend on securing high-profile enterprise contracts and maintaining technological superiority, positioning Upstage to compete with global AI leaders.
About Upstage
Founded in October 2020, Upstage is a San Jose-based AI company specializing in enterprise-grade generative AI solutions. Its flagship Solar LLM and document AI platform enhance work efficiency in industries like finance, healthcare, and manufacturing. Backed by Hanwha Investment & Securities, SK Networks, and others, Upstage is South Korea’s most-funded AI software company, with operations in San Jose and Seoul.
Future Outlook
Upstage is poised to lead the enterprise AI market, leveraging its $45 million Series B bridge funding to expand globally and enhance its platform. The company aims to onboard 200 new enterprise clients by 2026 and achieve a 50% reduction in document processing costs for its partners. By advancing LLM performance and forging strategic partnerships, Upstage seeks to capture a significant share of the growing AI software market.
Media Contact
For more information, please contact:
Email: press@upstage.ai
Website: www.upstage.ai
