A new startup founded by seasoned e-commerce leaders, Daydream, is leveraging the power of artificial intelligence to revolutionize the way people shop for clothing online. The company recently announced a significant $50 million seed round from top venture capital firms to develop technology that aims to enhance the shopping search experience. With offices in New York City and Seattle, Daydream is keeping details about its platform under wraps, but its website offers a glimpse into its vision through hypothetical search queries related to finding trendy and personalized fashion items. Daydream boasts partnerships with nearly 2,000 brands, positioning itself as a one-stop destination for fashion-forward consumers.
Heading the startup is CEO Julie Bornstein, who previously served as the chief operating officer at Stitch Fix, as well as holding executive roles at Sephora, Nordstrom, and Urban Outfitters. Bornstein’s previous venture, THE YES, an AI-powered shopping platform, was acquired by Pinterest in 2022. With significant advances in AI technology over the past year, Bornstein is optimistic about the potential for Daydream to create an intelligent online shopping platform that simplifies the process for consumers. The rise of generative AI and other cutting-edge technologies is poised to transform the way people navigate the internet and could have significant implications for e-commerce.
Online retailers are actively exploring AI-related concepts to enhance their search experiences. Amazon launched its AI shopping assistant Rufus, while Alaska Airlines introduced a trip itinerary search tool utilizing generative AI technology from OpenAI. A recent survey by Adobe on generative AI trends revealed that a majority of respondents desire brands to leverage purchase history and data to tailor shopping experiences to their preferences. Daydream’s CTO and co-founder, Matt Fisher, emphasized the need for a revamp in online shopping experiences to provide seamless and intuitive interactions that anticipate and understand customer needs.
Several Seattle-area employees are working out of Daydream’s office in Kirkland, Washington, including co-founder and chief product officer Dan Cary, who spent over a decade at Google, focusing on generative AI. Other co-founders, Lisa Green and Richard Kim, bring their expertise from executive roles at Pinterest to the startup. The $50 million seed round was led by Forerunner Ventures and Index Ventures, with participation from GV and True Ventures. Forerunner’s founder and managing partner, Kirsten Green, envisions search evolving into personalized AI-driven services, in contrast to traditional search giants, which could lose market share to innovative newcomers meeting consumer needs with enhanced value.
Daydream’s innovative approach to utilizing AI in the online shopping experience holds the potential to disrupt the industry and create a more personalized and tailored approach for consumers seeking fashion items. With a strong leadership team and backing from prominent venture capital firms, the startup is well-positioned to make a significant impact in the e-commerce landscape. By leveraging generative AI and other advanced technologies, Daydream aims to provide an intuitive and seamless shopping experience that anticipates and fulfills customer needs, ultimately redefining the online shopping journey for modern consumers.
