Sequoia-backed AI design startup Visual Electric announced today that it has been acquired by search startup Perplexity, with its team set to join a newly created Agent Experiences group.
Perplexity CEO Aravind Srinivas confirmed the deal in a post on X. Terms of the acquisition were not disclosed.
As part of the transition, Visual Electric will shut down in 90 days. The company said users will be able to export their data before the closure, and paying subscribers will receive prorated refunds.
Founded in 2022, Visual Electric was created by Colin Dunn (formerly of Facebook and Dropbox), Adam Menges (formerly of Apple), and Zach Stiggelbout (formerly of Microsoft). The platform enabled designers to generate and edit images using AI-powered tools on an infinite canvas, supporting ideation and concept building in a collaborative whiteboard format. The startup later expanded into AI video generation.
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Visual Electric raised $2.5 million in seed funding from investors including Sequoia, BoxGroup, and Designer Fund.
By integrating the Visual Electric team, Perplexity aims to strengthen its product lineup as it competes in the growing AI search and agent space.
