# Moondream.ai

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/moondream-ai

- Industry: Software
- Headquarters: Seattle, US
- Website: www.moondream.ai
- Total disclosed funding: $4.5M
- Latest round: Seed (Oct 28, 2024)
- Investors on record: 3

## About

Moondream.ai, based in Seattle, US, specializes in creating open-source visual language models that enhance image understanding through simple text prompts, serving a variety of industries with advanced AI capabilities.Founded in 2024, Moondream.ai operates under the parent company M87 Labs, Inc. The company focuses on providing advanced image understanding through innovative technology. CEO Jay Allen leads the firm, which has recently secured USD 4.5 mn in Seed funding, aimed at increasing operational capacity and refining its product offerings. The company has completed a total of 1 deal as of October 28, 2024. The latest funding round had participation from Felicis Ventures, M12, and Ascend Venture Capital, reflecting strong investor interest in its vision.Moondream offers an innovative open-source visual language model (VLM) that provides advanced image understanding capabilities through simple text prompts. With a compact size of just 1GB and under 2 billion parameters, Moondream enables developers to implement complex visual tasks without the need for extensive training or heavy infrastructure. The model's functionalities include image captioning, object detection, document reading, and gaze tracking, catering to diverse applications across industries such as healthcare, logistics, retail, and robotics. By allowing users to run the model locally for free or access it via a cloud API, Moondream appeals to a broad customer base, from independent developers to larger enterprises. The product is designed to function seamlessly on various devices, including edge devices and laptops, and is utilized globally, with users in markets such as North America, Europe, and Asia.Moondream generates revenue through a combination of direct-to-consumer and B2B transactions, particularly via its cloud API services, which include a free tier allowing for a limited number of requests per day. This pricing structure encourages widespread adoption while facilitating higher-volume transactions for clients requiring extensive image processing capabilities. The model’s customers engage in subscription-based agreements for additional access beyond the free tier, allowing for scalable solutions tailored to their specific needs. Furthermore, the open-source nature of Moondream's offerings enables partnerships with organizations across various sectors, enhancing their value proposition in the market. The company's focus on a user-friendly experience and low operational costs aligns with the increasing demand for efficient visual AI solutions, strengthening its position in the industry.In October 2024, Moondream.ai raised USD 4.5 mn in Seed funding led by Felicis Ventures, with support from M12 and Ascend Venture Capital. The company plans to use this funding to bolster its Seattle headquarters and expand its engineering team. Future strategies include enhancing existing products and developing new offerings to meet market demands, targeting both North American and European markets for further growth.

## Funding rounds

- Seed, Oct 28, 2024, $4.5M — Felicis Ventures, M12, Ascend

## Investors

- Felicis Ventures (https://capitalatlas.ai/funds/felicis-ventures) — Seed
- M12 (https://capitalatlas.ai/funds/m12) — Seed
- Ascend — Seed