Instinct raises $350 million at $2.5 billion valuation
The one-year-old AI startup, led by 23-year-old Noah Shinn, has secured a $250 million Series B round, valuing the life-organising assistant at $2.5 billion despite emerging privacy concerns.
Instinct, a startup founded only last year, has raised a total of $350 million in funding, including a recent $250 million Series B round. The new investment, co-led by Index Ventures and Benchmark, values the company at $2.5 billion. The startup, which is operated by Spear Street Technology, has ridden the wave of artificial intelligence enthusiasm to achieve this valuation over the course of the summer.
The company offers an AI assistant designed to organise users' lives. Users connect the agent to their existing apps and devices, communicating with it via texts and calls. Although Instinct is currently in private beta and maintains a lo-fi website, it has gained significant popularity among early adopters.
Founder Noah Shinn, who is 23, highlighted the versatility of the tool in a statement on Wednesday. He noted that users have used Instinct to plan cross-country road trips, purchase weekly groceries and concert tickets, and cancel hundreds of dollars in subscriptions. Shinn also mentioned that one user is even planning their wedding with the assistance of the app.
Despite the strong user engagement and substantial funding, the startup has faced scrutiny regarding data privacy. Online users have expressed concern over the app’s permissions, describing them as overly generous. Additionally, some users have raised alarms about the terms of use, citing their invasive potential as a point of disturbance.
The funding round was disclosed to the Wall Street Journal on Wednesday. The rapid growth of Instinct reflects the broader market appetite for AI-driven personal productivity tools, even as questions about data handling persist for the one-year-old venture.
