Why We Invested · Menlo Ventures
Investment thesis
Vector databases will serve as a core anchor element in the modern AI data stack, with Pinecone emerging as the category leader.
It is clear that vector databases will be one of the key anchor elements of the modern AI data stack, and that Pinecone is the emerging category leader with a proven team.
Traction
The common pairing of OpenAI models and Pinecone vector databases has driven rapid, explosive growth for Pinecone.
Pinecone filled that gap immediately, to the point that the pairing of OpenAI and Pinecone became “a thing” now known as the OP stack. That combination sparked incredible and explosive growth in Pinecone.
Investment context
Pinecone raised a $100 million Series B round led by A16Z at a $750 million valuation.
Pinecone has raised a $100M Series B led by A16Z—with explosive growth justifying their new $750M valuation.
Menlo Ventures led Pinecone's Series A in December 2021, investing $17 million at a $170 million post-money valuation.
Menlo led their Series A in December of 2021. $17 million at $170 million post in December 2021 for a vector database when nobody understood vector embeddings sounded bold.
What founders can learn
- The traction evidence that carried weight: Menlo Ventures wrote that The common pairing of OpenAI models and Pinecone vector databases has driven rapid, explosive growth for Pinecone.
Source and provenance
Why We Invested published by Menlo Ventures on menlovc.com (first-party source). Read the original
