TL;DR:
- Madrid-based startup Correcto has raised $7 million in seed funding to develop its Grammarly-style editing tool for Spanish.
- The company was inspired by the success of Grammarly in English but found a gap in the market for Spanish language editing tools.
- Correcto differentiates itself from generative AI tools like ChatGPT by focusing on high-quality Spanish text correction and offering real-time feedback for users to improve their writing.
- The startup sees a significant opportunity in the Latin American market, where many native Spanish speakers lack access to quality writing education.
- Correcto aims to complement AI giants by fine-tuning language models specifically for the Spanish language, making it an attractive acquisition target in the future.
- This funding round reflects the growing demand for AI-driven writing tools and positions Correcto as a key player in the Spanish language editing market.
Main AI News:
In the midst of the generative AI revolution, Correcto, a Madrid-based startup specializing in language writing tools for Spanish speakers, is celebrating a successful seed funding round that raised $7 million. Octopus Ventures, based in London, led this round, with participation from Carya Venture Partners and River Park Ventures.
The inception of Correcto’s ambitious project, akin to a Grammarly-style auto-editing tool for refining written Spanish, dates back to late 2021. This was a time when generative AI tools, such as ChatGPT, were just beginning to gain global recognition and prominence.
Co-founders Abraham López Lee (CEO) and Ignacio Prieto Mayorga (COO) embarked on this venture after experiencing firsthand the benefits of tech tools like Grammarly during their studies and work abroad, which significantly enhanced their English writing proficiency. However, they were perplexed by the absence of similar tools for refining Spanish grammar and syntax, despite their extended periods abroad diminishing their professional writing confidence in their native language. Driven by their desire for a high-quality Spanish language editing tool, they teamed up with their technical co-founder, CTO Antonio Triguero Noriega, and set out to develop a minimum viable product (MVP).
The initial version of Correcto utilized rule-based natural language processing and an exclusive database of Spanish phrases to power Grammarly-inspired auto-editing features, catering to grammar and stylistic improvements in the Spanish language. Their product debuted as a Chrome extension to assess demand, and later, they introduced a freemium web application. To date, Correcto has garnered 120,000 downloads and boasts approximately 70,000 active users.
Throughout their product development journey, the landscape of AI writing tools has undergone significant transformation, largely due to the emergence of readily accessible generative AI tools. These large language models (LLMs), like OpenAI’s ChatGPT and Anthropic’s Claude, are now capable of generating various written content, including Spanish text. Consequently, one might wonder if AI auto-editing tools remain relevant, given the possibility of generating entirely new or even corrected, texts using LLMs.
The founders of Correcto firmly believe in the continued importance of their auto-editing tool. They argue that LLMs, primarily trained on English inputs, produce Spanish text of inferior quality, often resembling the writing style of a child. This falls short of meeting the standards expected by the professional business users they target. This perspective aligns with another Spanish startup, Clibrain, which aims to develop a foundation model fine-tuned specifically for Spanish language inputs.
Moreover, Correcto’s real-time auto-editing interface encourages individual learning by providing ongoing feedback, fostering a deeper connection between the user and the writing process. In contrast, LLMs, where users delegate writing tasks to AI without active involvement, lack granular learning opportunities. Correcto envisions its role as providing “augmented intelligence” rather than artificial intelligence, emphasizing the value of human participation in the writing process.
As the digital world becomes inundated with machine-generated text, maintaining a human touch in communication becomes crucial. This personalization and warmth in writing can differentiate content and potentially command a premium over purely artificial-sounding communication, particularly in professional contexts. Correcto’s target market includes enterprises, although they remain committed to offering a freemium version of their tool for individual users, which facilitates valuable product feedback.
Abraham López Lee asserts, “We do not necessarily focus on doing people’s jobs but really complementing and empowering people to write better.” Correcto aims to boost productivity while preserving the writer’s voice and individuality.
The recent surge in the popularity of generative AI, exemplified by ChatGPT, has contributed to a more favorable market environment for Correcto. The startup has even integrated OpenAI’s API to introduce a quasi-generative writing feature called “Write for Me.” Users can specify the context, audience, and tone to receive assistance in creating appropriate Spanish text. This feature leverages mainstream generative AI advancements while capitalizing on Correcto’s nuanced fine-tuning for the Spanish language.
Abraham López Lee emphasizes the need for Spanish language-specific fine-tuning of LLMs, as there is currently a significant gap between English and other languages. Correcto’s expertise in this area positions them for potential success in the industry. While competition exists, Correcto believes that its comprehensive approach to language nuance and utility sets it apart.
The co-founders of Correcto identify a significant opportunity for their product in Latin America, where many native Spanish speakers lack the educational resources to write professionally in their mother tongue. Currently, the top five countries for Correcto usage are Colombia, Mexico, Argentina, Spain, and the U.S. Their initial target customer base includes professionals in editorial, communications, and marketing.
The AI landscape is evolving rapidly, and many companies are seeking guidance on how to adopt AI effectively. Correcto aims to ride the wave of AI adoption and provide a one-stop-shop solution for Spanish businesses in need of AI writing support.
Looking ahead, Correcto envisions the possibility of a strategic exit to a major AI player, particularly if their fine-tuned models attract a critical mass of Spanish-speaking professionals. López Lee explains, “When we do this in-house — if we build incredible technology, incredible databases, a really strong fine tune of these models that are particularly crafted towards Spanish and its dialects — we don’t see why this wouldn’t be an incredible exit opportunity for us in the future from one of these large players.”
Correcto’s commitment to delivering a compelling product sets them apart from the resources and capabilities of AI giants. Their focus on addressing the unique nuances of the Spanish language and its dialects aligns with their mission of adding value to society through their products.
Conclusion:
Correcto’s successful funding round underscores the increasing demand for AI-powered language editing tools. By targeting the Spanish language market with a focus on quality and user engagement, Correcto aims to carve a niche for itself amid competition from generative AI models. The startup’s commitment to providing personalized, high-quality Spanish text correction aligns with market trends, and its potential for fine-tuning models makes it an appealing prospect for future acquisition by larger players in the AI industry.
