Young Founders Drive AI Startup Growth in San Francisco

Young entrepreneurs are increasingly leaving universities to create AI startups in San Francisco, forming a notable trend in the city’s technology sector. This development is marked by the emergence of founders in their teens and early twenties who are securing substantial investment and building new companies.

Several individuals in their early 20s have departed institutions such as Georgetown and MIT to establish AI-focused businesses. Brendan Foody, who left Georgetown University in 2023, started Mercor, while MIT dropouts Karun Kaushik and Selin Kocalar launched Delve, an AI compliance company. Jaspar Carmichael-Jack, age 23, also left college to create Artisan, a startup focused on AI sales assistance.

These founders often choose to live and work in shared environments, such as co-living spaces or hacker houses, as they build their companies in San Francisco. Delve, the company started by Kaushik and Kocalar, operates from an office in the Financial District and has developed a customer base of over 100 organizations.

Some of these startups have reported rapid fundraising and growth. Mercor raised $100 million in a February funding round, reaching a valuation of $2 billion and total funding of over $132 million. Delve has secured $35.3 million and maintains a run rate of several million dollars, while Artisan has raised more than $35 million.

What the numbers show

• Mercor has raised over $132 million and is valued at $2 billion
• Delve employs about 20 people and has raised $35.3 million
• Artisan has secured more than $35 million in funding
• Delve serves over 100 customers and operates in the Financial District

In addition to these founders in their twenties, younger participants are also entering the AI sector. Michael Goldstein, age 13, traveled to San Francisco and met with the CEO of OpenAI, after which he shifted his startup’s focus to an AI design agent named Kodo. During his visit, Goldstein was advised by OpenAI’s CEO to seek investment from Andreessen Horowitz.

The trend of young founders establishing AI startups in San Francisco is reflected in the range of backgrounds and ages among these entrepreneurs. Many have chosen to leave formal education to pursue business opportunities in artificial intelligence, and their companies are attracting both customers and investors.

Startups such as Delve and Mercor have expanded their teams and operations while continuing to raise capital. These companies are operating from central locations in San Francisco and are building customer bases that include over 100 organizations in some cases.

Living arrangements for these founders often involve co-living or shared workspaces, which are common among young technology entrepreneurs in the city. This approach allows founders to collaborate closely as they develop new AI products and services.

* This article is based on publicly available information at the time of writing.