Perplexity acquires the team behind Sequoia-backed AI design startup Visual Electric | TechCrunch

Sequoia-backed AI design startup Visual Electric said that it is joining search startup Perplexity today. The company noted on its site that the team would be joining a new Agent Experiences group at Perplexity.

Aravind Srinivas, Perplexity’s CEO, confirmed the acquisition with a post on X.

Deal terms were not disclosed.

The startup said that as part of the transition, it will shut down Visual Electric as a product in 90 days. It added that users will be able to export their data, and subscribers will get prorated refunds.

Visual Electric was founded in 2022 by Colin Dunn, a former Facebook and Dropbox employee; Adam Menges, a former Apple employee; and Zach Stiggelbout, a former Microsoft engineer. The tool, aimed at designers, lets users create images using AI and apply edits on an infinite canvas.

The idea was to have designers build ideations and concepts over a whiteboard. Over time, the company added support for video generation, as well. The startup had raised $2.5 million in funding from Sequoia, BoxGroup, and Designer Fund.