AI startup Instinct is in talks for a major new funding round that could value the young company at $10 billion, with Sequoia Capital and Benchmark discussing a potential lead role.
Instinct, the startup behind the invite-only personal AI assistant of the same name, is seeking to raise $1 billion at a $10 billion valuation, according to a report citing a person familiar with the deal.
The fundraising discussions come as Instinct expands access to its AI assistant and its user base climbs beyond 100,000 people. The company is also dealing with capacity constraints as it opens the service to more users.
Sequoia Capital and Benchmark are in talks to lead the proposed round, although the terms have not yet been finalized. That distinction remains important, as the reported valuation and fundraising amount could still change while discussions continue.
Instinct’s valuation could climb sharply from its last round
The proposed financing would mark a substantial jump from Instinct’s previous valuation.
The startup was last valued at $2.5 billion following a Series B round led by Index Ventures and Benchmark. That financing took Instinct’s total funding to $350 million.
If the latest discussions result in a $10 billion valuation, Instinct’s valuation would stand at four times the figure attached to its previous round.
The new talks also put Benchmark in a notable position. The venture firm participated as a lead investor in the earlier Series B and is now reported to be discussing a lead role in the potential new financing alongside Sequoia Capital.
An invite-only AI assistant built to take action
Instinct was founded last year by Noah Shinn, a former researcher at AI customer-service startup Sierra.
Rather than functioning only as a conversational assistant, Instinct is designed to connect with a user’s apps and devices and carry out practical tasks. The service can handle activities including shopping, travel planning and subscription cancellations, with users interacting with the assistant through text messages or calls.
Access remains invitation-only, even as the company gradually makes the service available to a wider audience.
That expansion appears to be central to the timing of the latest funding discussions. Instinct had previously been looking to raise additional capital while dealing with capacity limitations. Since then, its user base has grown to more than 100,000 as access to the service has broadened.
Growth is bringing a capacity challenge
The combination of rapid user growth and capacity constraints gives the potential funding round a more specific backdrop than valuation alone.
Instinct is not simply discussing new capital while developing a product behind closed doors. Its assistant is already being used by more than 100,000 people, while the company is simultaneously managing the demands created by widening access.
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