Motion Secures $60 Million in Funding, Reaching $550 Million Valuation for AI Work Suite

San Francisco-based Motion, a company developing an agentic work suite for small and mid-sized businesses (SMBs), has successfully raised $60 million in its latest funding rounds, bringing its total capital raised to $75 million and achieving a post-money valuation of $550 million. The announcement, highlighted by Y Combinator, underscores investor confidence in Motion's vision to revolutionize productivity for SMBs through AI.

The $60 million funding encompasses Series B, Series C, and a preemptive Series C2 round. The Series C, which was oversubscribed by more than five times, was led by Scale Venture Partners. Other significant investors include HOF Capital, 468 Capital, and SignalFire, with Y Combinator continuing its investment across multiple rounds. Stacey Bishop of Scale Venture Partners will join Motion's board as part of the Series C.

Motion's core offering is an "agentic work suite," designed to function as a modern equivalent of the Microsoft suite with natively embedded AI agents. As stated by Y Combinator, the platform aims to be "the first agentic work suite for SMBs," allowing businesses to integrate AI agents for various functions, including project management, sales, and marketing. These "AI Employees" are built directly into the platform, not as bolt-ons.

The company has demonstrated significant growth, reporting mid-eight-figure annual recurring revenue (ARR) and serving over 10,000 B2B customers. Motion has experienced a 3x year-over-year growth, with its "AI Employees" product alone surging from $0 to eight-figure ARR within three months of launch. This rapid adoption reflects the pressing need among SMBs for integrated AI solutions to enhance operational efficiency.

The newly secured capital will primarily be allocated to expanding Motion's engineering and product teams. This investment is crucial for further developing the agentic work suite, introducing new applications, and enhancing existing AI agents. Motion aims to empower everyday businesses, enabling them to leverage advanced AI technologies that were previously only accessible to larger enterprises.