TL;DR
Marissa Mayer has closed an $8 million seed round for Dazzle, a new startup focused on AI personal assistants, after winding down her previous company Sunshine. The round was led by Kirsten Green of Forerunner with participation from several established VCs; Mayer says the team began prototyping Dazzle last summer and expects to exit stealth early next year.
What happened
Marissa Mayer shut down Sunshine — her photo-sharing and contact-management venture — and launched a new company called Dazzle to pursue AI-driven personal assistants. The startup has secured an $8 million seed round at a $35 million valuation, led by Forerunner Ventures founder Kirsten Green. Other participants include Kleiner Perkins, Greycroft, Offline Ventures, Slow Ventures and Bling Capital. Mayer has acknowledged she put personal capital into Dazzle, while noting Green led the financing. She said the team began prototyping Dazzle last summer and that the project rapidly outgrew the scope and ambition of Sunshine. Sunshine, originally founded as Lumi Labs in 2018, had raised about $20 million over its life and faced criticism over privacy practices and product polish before being dissolved; its former investors received 10% of Dazzle’s equity, Mayer said. Dazzle is expected to come out of stealth early next year, though Mayer has not detailed the product’s functionality.
Why it matters
- A high-profile lead investor signals confidence in consumer-facing AI after enterprise AI’s early lead in this cycle.
- Mayer’s move shifts her focus from a struggling consumer app to a new effort centered on generative AI assistants.
- Early funding and established VC backers give Dazzle runway to iterate before public launch.
- Lessons from Sunshine’s challenges — including privacy scrutiny and product fit — may shape Dazzle’s approach.
Key facts
- Dazzle raised an $8 million seed round at a $35 million valuation.
- The round was led by Kirsten Green of Forerunner Ventures.
- Other investors include Kleiner Perkins, Greycroft, Offline Ventures, Slow Ventures and Bling Capital.
- Marissa Mayer invested personal capital in Dazzle and founded the company after closing Sunshine.
- Sunshine (originally Lumi Labs, founded 2018) was dissolved after six years; it had raised roughly $20 million.
- When Sunshine was wound down, its investors received 10% of Dazzle’s equity, according to Mayer.
- Mayer says the Sunshine team began prototyping Dazzle last summer and found the new project more ambitious.
- Dazzle is positioned around next-generation AI personal assistants, but Mayer has not disclosed product specifics.
- Dazzle is expected to exit stealth early next year.
What to watch next
- Dazzle’s public product reveal and the specific capabilities of its AI personal assistant when it exits stealth (not confirmed in the source).
- How consumer adoption and privacy handling are addressed given Sunshine’s prior criticism.
- How Forerunner’s backing influences Dazzle’s go-to-market approach and distribution strategy (not confirmed in the source).
Quick glossary
- Seed round: An early stage of venture financing intended to support initial product development, hiring, and go-to-market efforts.
- Valuation: An estimate of a company’s worth used to determine ownership stakes during financing rounds.
- AI personal assistant: A software agent that uses artificial intelligence to help users perform tasks, manage information, or interact with services.
- Stealth mode: A period when a startup operates privately without broadly disclosing its product details or market plans.
- Lead investor: The primary backer in a funding round, typically setting terms and contributing a significant portion of the capital.
Reader FAQ
How much money did Dazzle raise?
Dazzle raised an $8 million seed round at a reported $35 million valuation.
Who led the funding round?
The round was led by Kirsten Green of Forerunner Ventures, with participation from several other VCs.
What will Dazzle’s product do?
Not confirmed in the source.
When will Dazzle be publicly revealed?
Mayer said Dazzle is expected to come out of stealth early next year.
What happened to Mayer’s previous company, Sunshine?
Sunshine was dissolved after several years and about $20 million in funding; Mayer said its investors received 10% of Dazzle’s equity.
The former Yahoo CEO, Marissa Mayer, refuses to sit on the sidelines of the generative AI revolution. After spending the last six years running Sunshine, a photo-sharing and contact-management startup…
Sources
- Marissa Mayer’s new startup Dazzle raises $8M led by Forerunner’s Kirsten Green
- Marissa Mayer's new startup Dazzle raises $8M led by …
- Ex-Yahoo CEO's AI Startup Dazzle Raises $8M
- Marissa Mayer's Dazzle AI Raises $8 Million Seed Round …
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