vAI-powered note-taking is becoming increasingly competitive, but hardware startups are still finding room to grow.
Pocket, a startup backed by Y Combinator, has raised $11 million in new funding as it looks to expand its AI-powered recording device and strengthen its position in the growing market for meeting transcription and productivity tools.
The funding round was backed by Accel, Y Combinator, and ElevenLabs CEO and co-founder Mati Staniszewski.
A Different Approach to AI Note-Taking
Pocket has entered a market already filled with AI transcription software and dedicated recording devices. Instead of relying only on smartphone apps, the company built a compact recording device that attaches magnetically to the back of a phone.
The credit card-sized device records conversations, converts speech into text, and helps users organize meeting notes with AI.
Pocket says it has sold more than 130,000 devices since launching last year, showing growing demand for dedicated AI productivity hardware.
Built for Conversations Beyond Video Calls
Pocket co-founder Akshay Narisetti believes many existing AI note-taking tools focus too heavily on online meetings while overlooking in-person conversations.
The company’s device is designed for real-world meetings, allowing users to capture discussions even when they are offline or away from a computer.
According to Narisetti, richer context from face-to-face conversations can improve the quality of AI-generated summaries and follow-up actions.
Pocket was founded by Narisetti, an early member of AI note-taking startup Omi, alongside co-founder Gabriel Dymowski, who previously built a blockchain-based document management company.
Expanding AI Features for Businesses
Pocket pairs its hardware with an AI-powered mobile application that generates meeting summaries, answers questions about recorded conversations, creates mind maps, and converts notes into different document formats.
Enterprise customers can also connect Pocket with business tools including Google Calendar, Google Drive, OneDrive, Claude, Cursor, and Obsidian through workflow integrations and its Model Context Protocol (MCP) server.
The company says these capabilities help automate follow-up work such as drafting emails, updating CRM systems, and creating action items after meetings.
Competing in a Crowded AI Productivity Market
Pocket faces competition from software-first platforms including Otter, Fireflies, Read AI, Zoom, and Granola.
It also competes with hardware-focused companies such as Plaud, which has continued expanding its enterprise offerings while growing software revenue.
Pocket believes combining dedicated hardware with AI-powered workflows gives it an advantage for professionals who regularly conduct meetings outside traditional office environments.
Growing Demand for AI Productivity Devices
The latest funding will support Pocket’s product development and enterprise expansion as organizations continue investing in AI tools that improve workplace productivity.
As AI assistants become more capable of organizing information and automating routine work, startups like Pocket are betting that dedicated hardware can still play an important role alongside software platforms.
With fresh funding and growing customer adoption, Pocket is positioning itself to compete in one of the fastest-growing segments of the enterprise AI market.