Clipto raises $15M and aims for interoperable local search

The San Francisco-based startup Clipto has completed a $15 million funding round, achieving a valuation of $250 million. It claims to have $15 million in annual recurring revenue by early 2026 and is net profitable, focusing on local file indexing that can connect to AI agents via the Model Context Protocol.

User-Limited Data Access and Local Processing

Clipto has recently added support for the Model Context Protocol, which allows AI applications to connect to external information sources. According to Henry Kang, access to indexed files requires explicit request and user authorization, and applications only retrieve information within the scope defined by the user. Processing occurs locally on the device, without resorting to cloud services. Users can also choose to make certain information accessible to AI tools like ChatGPT and Claude.

Cross-Search on Videos, Audio, Images, and Documents

The software indexes videos, audio files, images, meetings, and other content stored on the computer. Searches can be conducted in natural language or by querying assistants like ChatGPT or Claude. While the product initially targeted video creators managing scattered footage across computers and external drives, Henry Kang notes that these creators now represent only about a quarter to a third of users. The remaining audience includes a variety of professions, such as lawyers, doctors, researchers, marketers, HR managers, teachers, and students.

Competing with Adobe, Apple, and Google, Clipto Bets on Scope

The market already features AI-enhanced search offerings, such as Adobe's in Premiere, or the natural language functions in Apple Photos and Google Photos. Henry Kang asserts that Clipto covers videos, audio, images, and documents beyond proprietary service silos. The company bets that combining these features within a single product will help it compete with more established platforms.

Funding, Recurring Revenue, and Roadmap

Clipto has raised $15 million in equity at a post-money valuation of $250 million from investors including HSG ex-Sequoia China, GL Ventures, EnvisionX Capital, Palm Drive Capital, Hans Tung, Lu Zhang, and 522 Ventures. The company states that over 30 million people have used its products and has hundreds of thousands of paying subscribers. Henry Kang did not provide further details on the number of subscribers or average revenue per customer, while indicating that a significant portion of the customer base remains subscribed for over two years. He reports an annual recurring revenue of $15 million by early 2026 and profitability on a net revenue basis. The company employs just over 20 people across the San Francisco Bay Area, Hong Kong, and Singapore. The new funds will go towards AI models, infrastructure to operate on consumer hardware, and new integrations with AI agents. Henry Kang claims to have been working on these topics for nearly twenty years, with work dating back to 2006 at Carnegie Mellon on robots capable of recording and identifying their environment. His previous ventures include a clothing recommendation startup and Zenvideo, focused on simplifying video creation, which was acquired by Tencent in 2020. He explains that he founded Clipto in 2023 with members of his former team, driven by the realization of an excess of content and underutilized video footage.