Paid Raises $21.6M Seed to Pioneer Results-Based Billing for AI Agents

Paid Secures $21.6 Million Seed Round to Revolutionize AI Agent Billing

Manny Medina, renowned for founding the sales automation giant Outreach, has launched a promising new venture, Paid. The London-based startup recently closed an oversubscribed $21.6 million seed round led by Lightspeed, bringing its total funding to $33.3 million since its €10 million pre-seed in March. Industry sources value Paid at over $100 million ahead of its Series A.

Innovating AI Agent Monetization with Results-Based Billing

Unlike traditional AI agent providers, Paid does not sell agents directly. Instead, it empowers agent developers to monetize their solutions by billing customers based on the tangible value—specifically cost or margin savings—that their AI agents generate. This approach, often termed “results-based billing,” represents a shift away from conventional software pricing models. Medina explains that the SaaS-era per-user subscription fees and client/server era one-time purchases are ill-suited for AI agents. Agent developers incur ongoing costs from cloud and model usage fees, making unlimited access plans financially unsustainable. Paid’s model ensures that providers are compensated proportionally to the agent’s actual contribution and workload.

Addressing Key Challenges in AI Agent Adoption

Charging fixed fees or credit packages poses risks for AI agent makers, especially given that much of current AI output remains low-value or irrelevant. A recent MIT study revealed that 95% of enterprise AI projects fail to deliver value, underscoring the need for more accountable pricing aligned with real outcomes.

Manny Medina: “If you’re a quiet agent, you don’t get paid. You need an infrastructure that allows the agent to charge for the additional work that the agent is doing.”

Paid’s platform enables agent makers to transparently demonstrate the financial benefits their AI delivers, incentivizing higher performance and greater adoption.

Early Traction with Sales Automation and Enterprise SaaS Leaders

Among Paid’s initial clients is Artisan, a fast-growing sales automation startup. Additionally, Paid has secured ERP vendor IFS as a customer, signaling growing interest from enterprise software players seeking AI-driven growth. Artisan’s CEO Jaspar Carmichael-Jack is scheduled to discuss these themes at the upcoming TechCrunch Disrupt event in San Francisco this October.

Investor Backing Reflects Confidence in Paid’s Unique Approach

Lightspeed partner Alexander Schmitt highlighted the firm’s extensive $2.5 billion investment history in AI infrastructure and applications. He noted the common failure of AI pilots due to the inability to quantify agent value. Schmitt believes Paid’s results-based billing model is unprecedented and well-positioned to drive widespread AI agent adoption.

Alexander Schmitt, Lightspeed: “The core problem is that no one can really attach value to what agents are doing today. Paid’s approach is something we haven’t seen before.”

New investor FUSE and existing participant EQT Ventures also joined the seed round, further validating Paid’s market potential.

FinOracleAI — Market View

Paid’s results-based billing model introduces a critical innovation in the monetization of AI agents, addressing the cost and value challenges that have hindered AI adoption in enterprise settings. By aligning charges with measurable outcomes, Paid offers a scalable solution for AI developers and end-users alike.

• Opportunities: Enables sustainable economics for AI agent providers; incentivizes higher agent productivity and client satisfaction; appeals to enterprises seeking accountable AI investments.
• Risks: Dependence on accurate value measurement metrics; potential competition as results-based billing gains traction; AI’s inherent unpredictability may complicate billing consistency.

Impact: Paid’s approach could redefine AI agent billing, fostering broader adoption and innovation in AI-driven automation across industries.