TITLE: Marissa Mayer Launches AI Startup Dazzle After Closing Sunshine

Marissa Mayer Launches New AI Venture After Shutting Down Sunshine

Former Yahoo CEO Marissa Mayer has closed her photo-sharing and contact-management startup Sunshine to launch Dazzle, a company developing advanced AI personal assistants. The move comes after six years of limited success with Sunshine, which Mayer founded in 2018.

Dazzle has raised $8 million in seed funding at a $35 million post-money valuation. The round was led by Kirsten Green of Forerunner Ventures, with participation from Kleiner Perkins, Greycroft, Offline Ventures, Slow Ventures and Bling Capital. Mayer contributed personal capital but emphasized Green's leadership in the investment.

Green, known for early investments in consumer brands like Warby Parker, Chime and Dollar Shave Club, views consumer AI as an emerging opportunity. She has described enterprise AI as an early leader in the current tech cycle, with consumer applications poised for broader adoption.

Mayer's high profile and Green's backing provide significant credibility for Dazzle, particularly following Sunshine's challenges. The new startup began as a prototyping project within Sunshine last summer, quickly surpassing the original focus in scope and potential impact.

Background on Sunshine's Closure

Sunshine, initially launched as Lumi Labs, debuted with Sunshine Contacts, a subscription-based app for managing personal networks. The product drew criticism from privacy advocates for accessing public databases to add home addresses to contacts, hindering user adoption.

By 2024, Sunshine expanded to include event management features and Shine, an AI-driven photo-sharing tool. However, the offerings faced backlash for outdated interfaces and failed to achieve widespread use. The company raised $20 million total from investors including Felicis, Norwest Venture Partners and Unusual Ventures.

Upon dissolution, Sunshine's investors received 10% equity in Dazzle. Mayer reflected on the venture's shortcomings, describing its problems as too mundane and lacking sufficient scale. She noted that Sunshine did not reach the polish and accessibility she envisioned.

Mayer's Vision for Dazzle

Mayer aims to leverage lessons from Sunshine to create a more ambitious product with Dazzle. While details on functionality remain undisclosed, the company targets the generative AI revolution, building tools to transform daily interactions.

Mayer's career includes early roles at Google, where she was employee number 20 and contributed to the design of Google Search, Google Maps and AdWords. As Yahoo CEO from 2012 to 2017, she oversaw efforts to revitalize the internet portal.

"I have had the rare privilege of being at two companies that really changed how people do things," Mayer said. "Yahoo, for many, defined the internet. Google, in terms of Search and Maps, changed everything. I really aspire to build a product that has that kind of impact again."

Dazzle is set to exit stealth mode in early 2026. Mayer expressed excitement about the project's potential for broader influence compared to Sunshine.

Investment Context

The funding round underscores investor interest in AI-driven consumer tools. Forerunner's involvement signals confidence in Dazzle's positioning amid the shift toward personal AI applications. Mayer highlighted Green's insight into evolving user and platform trends as a key factor in the partnership.

Sunshine's pivot to Dazzle reflects broader trends in tech, where founders iterate on past experiences to address larger market opportunities. Despite Sunshine's struggles, its closure allows Mayer to redirect resources toward high-growth areas like AI assistants.