Daydream Raises $50M to Launch AI-Powered E-commerce Search Engine

  • Daydream secures $50 million seed funding to develop an AI-driven search engine for e-commerce.
  • Founded by Julie Bornstein, focusing initially on fashion, with plans for a U.S. beta launch in fall.
  • Platform enables natural language and image-based searches for personalized shopping experiences.
  • Partnerships established with over 2,000 brands including Net-A-Porter and Jimmy Choo.
  • Funding round co-led by Forerunner Ventures and Index Ventures, with participation from Google Ventures and True Ventures.

Main AI News:

In a bustling e-commerce landscape characterized by diverse platforms and abundant content, finding the right product efficiently remains a challenge. Recognizing this gap, Daydream, an innovative startup, has raised an impressive $50 million in seed funding to launch its AI-powered search engine tailored for online shopping.

Founded by e-commerce veteran Julie Bornstein, Daydream aims to enhance shopping experiences by leveraging generative AI, machine learning, and computer vision technologies. Scheduled for a beta release in the U.S. this fall, the platform initially focuses on the fashion sector. Already, Daydream boasts partnerships with over 2,000 brands including Net-A-Porter, Altuzarra, and Jimmy Choo.

Unlike traditional search tools, Daydream allows users to search using natural language queries and image recognition, facilitating personalized shopping journeys. This capability enables queries such as “summer wedding attire suggestions for Costa Rica” or even uploading images with specific filters like “blue dress.”

The funding round was co-led by Forerunner Ventures and Index Ventures, with participation from Google Ventures and True Ventures. Although Daydream has not disclosed its valuation, the substantial investment underscores confidence in its potential to redefine e-commerce search paradigms.

Bornstein, drawing on her extensive experience with major retailers like Nordstrom and Sephora, criticizes current e-commerce search tools as impersonal and ineffective. She emphasizes Daydream’s focus on refining AI models and curating extensive product datasets to deliver superior search accuracy.

Despite competition from tech giants and niche startups in AI-driven e-commerce, investors like Kirsten Green of Forerunner Ventures see Daydream’s emphasis on deep personalization as a compelling advantage. Frédérique Dame of Google Ventures highlights the team’s expertise and anticipates strong user adoption.

Looking ahead, Daydream plans to expand its engineering team and scale operations rapidly. The startup intends to generate revenue through commissions rather than ads, positioning itself as a pivotal discovery platform in the e-commerce ecosystem.

With its robust funding and seasoned leadership, Daydream is poised to carve out a niche by offering consumers a more intuitive and personalized shopping experience, potentially reshaping the future of online retail search.


Daydream’s substantial seed funding and strategic partnerships highlight growing investor confidence in personalized AI solutions for improving e-commerce search experiences. With its focus on natural language and image recognition, Daydream aims to address the inefficiencies of current search tools, potentially setting a new standard in online shopping convenience and personalization. As the market continues to evolve towards AI-driven solutions, Daydream’s approach signals a significant advancement in enhancing user engagement and satisfaction within the e-commerce sector.