Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Exclusive: After causing outrage on Day 1 of Y Combinator, AI code editor PearAI lands $1M seed

Dec 20, 2024 - techcrunch.com
On the first day of Y Combinator’s winter 2024 session, PearAI founders Nang Ang and Duke Pan faced significant backlash after launching their AI code editor, which was accused of being a copy of another open-source project, Continue. The controversy was exacerbated by licensing issues and a boastful tweet from Pan. In response to the criticism, the founders apologized, switched to a standard open-source license, and improved documentation of their work. Despite the initial setback, they graduated from YC’s winter 2024 cohort with a revised product concept.

PearAI pivoted from creating a standalone code editor to developing a framework that integrates multiple AI coding tools, aiming to provide a seamless user experience. This new direction has been positively received, and the company successfully raised $1.25 million in seed funding, including contributions from Goodwater Capital, Multimodal Ventures, Orange Fund, ExitFund, and unnamed angel investors. The tool will integrate with various AI coding tools, including Continue, marking a significant turnaround from their initial launch experience.

Key takeaways:

```html
  • PearAI faced significant backlash during Y Combinator's winter 2024 session due to accusations of copying an open-source code editor and using a non-standard license.
  • After receiving feedback, PearAI shifted their focus from creating a code editor to developing a framework that integrates multiple AI coding tools.
  • The company successfully raised $1.25 million in seed funding, including $375,000 from Y Combinator.
  • Seed round investors include Goodwater Capital, Multimodal Ventures, Orange Fund, ExitFund, and some unnamed angel investors.
```
View Full Article

Comments (0)

Be the first to comment!