What is the business model and capitalization approach and how did you pick your investors?
Founder & CEO at Instinct
We raised a billion dollars at a 10 billion dollar valuation. We chose partners who have been through different but similarly shaped technology transformations in the past. I would focus less on the numbers and more on what the demand actually tells us. This product is delivering on the AI experience people have wanted since 2023 and that creates enormous demand. The capital is needed because we are trying to get this to billions of people at an affordable cost and compute is expensive. We could easily say it is a 100 dollar per month subscription and have short term revenue. But venture capital exists for exactly this: to take calculated risks to escape local optima and prove the right long-term business model, which for us is a transaction take rate on a free product that acts purely on behalf of the user.
This answer is part of a full interview with Noah Shinn, Founder & CEO at Instinct.
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