{"id":156609,"date":"2025-03-18T15:00:00","date_gmt":"2025-03-18T15:00:00","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2025\/03\/18\/arcade-raises-12m-from-perplexity-co-founders-new-fund-to-make-ai-agents-less-awful-techcrunch\/"},"modified":"2025-03-18T15:00:00","modified_gmt":"2025-03-18T15:00:00","slug":"arcade-raises-12m-from-perplexity-co-founders-new-fund-to-make-ai-agents-less-awful-techcrunch","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2025\/03\/18\/arcade-raises-12m-from-perplexity-co-founders-new-fund-to-make-ai-agents-less-awful-techcrunch\/","title":{"rendered":"Arcade raises $12M from Perplexity co-founder\u2019s new fund to make AI agents less awful | TechCrunch"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">Arcade, an AI agent infrastructure startup founded by former Okta exec Alex Salazar and former Redis engineer Sam Partee, has raised $12 million from Laude Ventures. <\/p>\n<p class=\"wp-block-paragraph\">Laude is the new fund launched in 2024 by\u00a0<a href=\"https:\/\/techcrunch.com\/2024\/12\/19\/perplexity-has-reportedly-closed-a-500m-funding-round\/\" target=\"_blank\" rel=\"noreferrer noopener\">Perplexity co-founder<\/a>\u00a0Andy Konwinski, the UC Berkeley computer scientist who also\u00a0<a href=\"https:\/\/techcrunch.com\/2024\/12\/17\/insight-vc-describes-databricks-wild-10b-deal-and-the-bad-advice-the-ceo-ignored\/\" target=\"_blank\" rel=\"noreferrer noopener\">co-founded Databricks.<\/a> <\/p>\n<p class=\"wp-block-paragraph\">This isn\u2019t the only check Laude has cut. But it is the first publicly announced one, Laude co-founder and general partner Pete Sonsini told TechCrunch. Sonsini is well-known for his years at NEA, where he led early investments in Databricks, Anyscale, and Perplexity.<\/p>\n<p class=\"wp-block-paragraph\">As for Salazar, he\u2019s a repeat founder. He landed at Okta after <a href=\"https:\/\/techcrunch.com\/2017\/03\/06\/okta-stormpath\/\" target=\"_blank\" rel=\"noopener\">selling his authentication API startup, Stormpath, to the company<\/a> in 2017. He spent the next few years at Okta as a VP building products.\u00a0Partee, for his part, had been building LLM-based applications and contributing to some key open source projects like LangChain and LlamaIndex, according to Arcade.<\/p>\n<p class=\"wp-block-paragraph\">When Salazar saw the debut of ChatGPT 3.5, he saw the future, and his next startup idea: an AI agent company. Arcade was founded in February 2024.\u00a0<\/p>\n<p class=\"wp-block-paragraph\">Then he and Partee quickly discovered <a rel=\"nofollow\" href=\"http:\/\/Andy Konwinski, the UC Berkeley computer scientist who also co-founded Databricks and Perplexity.\" target=\"_blank\">that AI agents don\u2019t really work<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">\u201cWe were trying to build a site reliability agent that was going to compete with [companies] like Data Dog,\u201d Salazar said. But \u201cmost agents suck. They don\u2019t do much.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Salazar and Partee kept \u201cbeating our heads against the wall\u201d trying to get their agent just to connect to other services and get the data needed to do their job.<\/p>\n<p class=\"wp-block-paragraph\">One reason, they discovered, is because many agents use LLMs trained on public data, but not private data. So they can, for instance, talk about product features but can\u2019t confirm that an order was delivered.\u00a0<\/p>\n<p class=\"wp-block-paragraph\">The pair decided Arcade would do for AI agents what Okta once-upon-a-time did for SaaS cloud services. The founders built a tool-calling platform for their site reliability agent.<\/p>\n<p class=\"wp-block-paragraph\">\u201cPeople were very surprised when we would show them the demo of that agent. They weren\u2019t that interested in the agent itself,\u201d Salazar said. They wanted to know how they got the agent to actually work. <\/p>\n<p class=\"wp-block-paragraph\">\u201cUltimately, we just looked at each other and said \u2026 Why don\u2019t we just, like, stop with the agent and sell the underlying tool-calling platform?\u201d Salazar said.<\/p>\n<p class=\"wp-block-paragraph\">Enter Arcade, which helps each agent get access with the same privileges to the same apps and data as the worker it assists, or the job role it plays.\u00a0Arcade is available via usage-based pricing or subscriptions.<\/p>\n<p class=\"wp-block-paragraph\">Arcade integrates with OAuth, so it can handle the authentications of thousands of SaaS services and websites. It also acts an intermediary, providing secure token management that prevents the LLMs themselves from accessing those credentials, Salazar said.<\/p>\n<p class=\"wp-block-paragraph\">When Sonsini, who had backed Salazar with Stormpath, heard that the founder was doing a new startup, he reached out and wanted in.<\/p>\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re very, very focused on super technical type founders, and so we\u2019re very plugged in with the research community. We have limited partners that are researchers,\u201d Sonsini said.<\/p>\n<p class=\"wp-block-paragraph\">Whereas many AI startup founders are focused on the \u201cshiny object\u201d around LLMs, like agents, \u201cmy background is the lower levels, the infrastructure where billion-dollar businesses can be built,\u201d Sonsini said. And Arcade \u201cfalls right in that space.\u201d<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/techcrunch.com\/2025\/03\/18\/arcade-raises-12m-from-perplexity-co-founders-new-fund-to-make-ai-agents-less-awful\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arcade, an AI agent infrastructure startup founded by former Okta exec Alex Salazar and former Redis engineer Sam Partee, has raised $12 million from Laude Ventures. Laude is the new fund launched in 2024 by\u00a0Perplexity co-founder\u00a0Andy Konwinski, the UC Berkeley computer scientist who also\u00a0co-founded Databricks. This isn\u2019t the only check Laude has cut. But it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":156610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":{"0":"post-156609","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tech"},"_links":{"self":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/156609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=156609"}],"version-history":[{"count":0,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/156609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/156610"}],"wp:attachment":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=156609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=156609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=156609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}