Marissa Mayer Shuts Down Sunshine Startup Lab
▼ Summary
– Sunshine AI startup, founded by former Yahoo CEO Marissa Mayer in 2018, is shutting down and selling its assets to her new entity Dazzle.
– The acquisition requires shareholder approval, with 99% already signed including major investors like Norwest Venture Partners and SV Angel.
– Dazzle’s purpose is unspecified in the email, but sources indicate Mayer is planning a new AI personal assistant project.
– Sunshine previously launched two unsuccessful products: Sunshine Contacts in 2020 and Shine in 2024, both facing criticism and poor reception.
– The startup had raised $20 million in venture funding and employed about 15 people who are expected to transition to Dazzle.
The consumer-focused artificial intelligence firm Sunshine, established by former Yahoo leader Marissa Mayer, is officially winding down operations. According to an internal email obtained by WIRED, the startup’s assets will be transferred to a newly formed company named Dazzle, which Mayer recently incorporated. In her communication to Sunshine stakeholders dated September 17, Mayer confirmed that Dazzle is prepared to take over Sunshine’s holdings pending shareholder consent.
Approval for the transaction must come from a range of investors, including cofounder Enrique Muñoz Torres, Norwest Venture Partners, Felicis Partners, SV Angel led by Ron Conway, and Archetype Agency. Sources indicate that as of Sunday, an overwhelming 99 percent of shareholders had already endorsed the deal. Mayer, who is both the chief executive and primary investor in Sunshine, holds the largest stake in the business.
While the email did not specify Dazzle’s intended direction, insiders report that Mayer is developing a new AI personal assistant product. It is anticipated that Sunshine’s workforce, approximately 15 individuals, will transition into positions at Dazzle.
Through a spokesperson, Mayer stated, “Following thorough evaluation, Sunshine’s leadership and nearly all shareholders concluded that selling to Dazzle AI represents the most promising future for the company. Dazzle is already established and has secured financial backing. As Sunshine’s CEO and main investor, Marissa takes pride in the team’s accomplishments and is excited to build on that progress with Dazzle’s upcoming ventures.”
Mayer launched the startup, initially named Lumi Labs, in 2018, following her tenure leading Yahoo. Before her role at Yahoo, she had a notable history at Google, joining as its twentieth employee. Mayer played a key role in designing the Google Search interface and contributed to the creation of Google Maps and Google AdWords.
Sunshine’s debut product, an application for organizing contacts, was inspired by Mayer’s personal need to manage her extensive professional network while starting the company. The app, Sunshine Contacts, debuted in 2020 after the startup secured $20 million in venture funding, supplemented by Mayer’s own investment.
However, the app soon encountered criticism over possible privacy violations. It used artificial intelligence to detect and combine duplicate entries in a user’s contact list, but it also integrated data from Whitepages to automatically include home addresses, raising concerns among users.
In 2024, Sunshine introduced a photo-sharing application named Shine. Similar to its predecessor, Shine failed to gain significant traction and was widely regarded as unsuccessful.
(Source: Wired)