A Meteoric Rise
In a summer that typically marks a quiet period for startup fundraising, investors have flocked to Instinct, a new AI assistant that reads and answers text messages and emails, and can handle tasks like booking flights and restaurant reservations. According to Forbes, the startup has raised at least three rounds over the last few months, with its valuation ballooning from $100 million to over $2.5 billion in a matter of weeks. Notably, the product is not yet public; access requires an invite from venture capital insiders.
TechCrunch reports that Instinct has raised $350 million at a $2.5 billion valuation, citing an announcement to the Wall Street Journal. The company, founded last year and led by 23-year-old Noah Shinn, offers an AI assistant that connects to users' apps and devices, allowing them to communicate via texts and calls. Shinn, a former Sierra researcher, registered the operating company Spear Street Technology in April, according to California corporate filings cited by Forbes.
Investor Frenzy and Key Rounds
The rapid ascent has been fueled by high-profile investors. Sarah Guo of Greenoaks and Neil Mehta led an early round that valued Instinct at over $100 million, as reported by Forbes. In early August, Mamoon Hamid of Kleiner Perkins led a $75 million Series A round, valuing the startup at over $500 million. More recently, TechCrunch reports that a new round was co-led by Index Ventures and Benchmark, bringing total funding to $350 million. Forbes adds that these firms are in talks to lead a new round of at least $200 million that would value the startup at over $2.5 billion. Neither Kleiner Perkins, Benchmark, nor Index Ventures responded to requests for comment at the time of publication.
Investors have publicly praised Instinct's capabilities. Sarah Guo wrote on X about the AI's ability to execute transactions and navigate websites, mentioning restaurant bookings and marathon entries. Investor Sheel Mohnot described Instinct as "OpenClaw for normal people," referencing the open-source agent that went viral in January but was tricky to set up and hard to run cheaply and securely. Noah Shinn tweeted about early users planning road trips, buying groceries, cancelling subscriptions, and even planning a wedding through the assistant.
Privacy and Reliability Concerns
Despite the enthusiasm, concerns have emerged. A report by TechCrunch, cited by Forbes, noted that Instinct's terms of use grant it "perpetual and irrevocable" rights to store user data, which could be used to train its AI models. AI founder Claire Vo posted that Instinct continued to access her Gmail and emails containing financial data after she disconnected the AI agent from her Google account. Jason Yeh of Patron Fund wrote on X that when he asked Instinct to find open reservations for dinner, it booked a table with a punishing cancellation fee, adding, "Honestly kind of insane how anyone would give them keys to their accounts at large, and they better cover the $200 cancellation fee here."
Instinct is currently free to use, but Forbes notes it could become a subscription service or serve ads based on its access to emails, texts, and financial records. The company's long-term business model remains unclear as it navigates its explosive growth and the scrutiny that comes with it.