The Toy Startups Getting Funded This Year: Talking Dinosaurs, Sticker Cubes And Tin Can Phones

It鈥檚 that time of year again, where parents are frantically looking for the new cool thing to wrap up and surprise their kids with this holiday season. The choices are more diverse than ever, especially as artificial intelligence has been increasingly incorporated into children’s toys.

What is intriguing, however, is that while AI-enabled toys are gaining traction, we are simultaneously seeing renewed interest in older technologies, including analog toys and screen-free gadgets. There is also a movement toward toys that are more than mere playthings, but also models of cultural learning and identity.

While 附近上门 data shows the toy industry overall doesn’t receive much in the way of venture dollars, there are some companies in the space getting investor cash, many with an AI angle. So as we head into the holiday season, we thought it would be fun to see what funded startups in the toy space are selling this year, and some of the trends catching investor attention. (I鈥檓 of the age where I mostly got Barbies and Play-Doh, so all of these cool new toys are extra fascinating to me.)

AI-enabled

It鈥檚 no surprise that artificial intelligence has made its way into the toy industry, as it is infiltrating seemingly every industry in one way or another. While there鈥檚 still plenty of debate about the potential risks and drawbacks of AI technologies aimed at children, the AI toys market is projected to nearly triple to $6.4 billion by 2032, up from $2.2 billion in 2024, according to a recent from .

One of the funded startups marketing an AI-enabled toy for youngsters this holiday season is . In early October, the company unveiled its AI-powered conversational companion in the form of a stuffed dinosaur. According to , the new toy is designed 鈥渢o help children learn, imagine, and grow through safe, interactive play.鈥� The startup has raised $5.3 million in a seed funding round led by with participation from , and

Bondu is not cheap. The toy costs $199.99, but hey, at least it comes in four different colors. Ironically, even though the toy is powered by AI, the company is

Some of the things Bondu can do, according to its manufacturer: help kids learn by having 鈥渃onversations鈥� in which it answers questions and teaches facts and can reply back to a child in 32 languages. Parents can even use the toy to set reminders in an effort to motivate their kids to do boring tasks such as brushing their teeth.

Another startup funded this year that offers a screenless, conversational, AI-powered toy is , a San Jose, California-based maker of a companion robot for young children. The company, which has raised $4.3 million to date, likewise touts a companion that it says can help young children with language development (English, Spanish, French and Mandarin), and math and science skills.

The funded companies are examples of growing investor interest in embedding conversational AI into physical toys.

More recently, another AI-enabled startup, New York-based , managed to raise $7 million in seed funding in just two months after co-founder 鈥檚 4-year-old son asked: 鈥淐an we make our own coloring sheets?鈥�

That question prompted Whitney, an alumnus of , to join co-founder and CEO (formerly of ) to start Stickerbox, a toy company that claims it has developed the first-ever voice-powered AI creativity tool for kids.

Investors such as , , and tennis legend 鈥� wrote checks into the startup to help it grow.

The Stickerbox is pretty much like what it sounds like: A cube that prints stickers. Children deliver prompts for images with their voices. Importantly, the company says, the box doesn鈥檛 collect voice data and doesn鈥檛 have a camera.

Like many other popular techie toys these days, including the and Toniebox audio players, Stickerbox also emphasizes that while it鈥檚 tech-enabled, it鈥檚 screen free, meaning it doesn鈥檛 come with many of the

What鈥檚 old is new again

The move away from screens is another trend that鈥檚 attracting investor interest.

Case in point: In September, , which has created a landline-style WiFi telephone for children, raised $3.5 million in funding. For those of us who remember the days of phones with actual cords, there is something nostalgic about the idea behind . Essentially, the Seattle-based startup is tapping into a trend where parents want simpler, more 鈥渁nalog鈥� devices for kids so they can slowly back away from the screens and participate in more direct communication.

, , and all felt compelled to fund the company.

, managing director at Seattle-based PSL, told that he believes Tin Can is 鈥渙ne of the fastest growing and most viral businesses鈥� he鈥檚 seen in over 25 years of investing.

Personally, I love the idea of these colorful phones that are shaped like, you guessed it, oversized tin cans. Kids can actually talk to each other without a screen or via text. One might argue that kids can talk to each other with cellular phones. But to that, I argue back, cellphones still have screens.

I鈥檓 rooting for this one.

Other trends: Subscriptions and cultural ties

Two other trends we鈥檝e spotted in our perusal of funded companies in the toy space: Those that tap into cultural heritage, and subscription offerings aimed at reducing clutter.

In October, , a toy brand offering handcrafted, eco-friendly toys inspired by Indian culture and heritage, raised an undisclosed amount of funding from . The nod to promoting culture is one to be applauded.

And last but not least: We all know how easily kids can get bored with toys. They鈥檒l play with one toy for two months straight, only to discard it with not so much as a glance at it again.

A startup called has the solution for frustrated parents who are tired of seeing discarded toys strewn all over the house, cluttering up rooms and taking up space 鈥� not to mention the money wasted on toys that are only played with for a short time before their child loses interest and moves on.

Started by mother of three , 鈥嬧€婳rbit Crates is a subscription toy-rental company designed for children aged newborn to 6. The startup, according to y, 鈥渉as almost 500 toys in stock, from classic wooden toys to Bluey and princesses.鈥� The startup participated in the in October, winning the $5,000 Mark and Jamie Summer Innovation Award.

In India, a similar toy rental startup called last month raised $1 million in pre-seed funding, per 附近上门.

So if you鈥檙e struggling with shopping for kids this holiday season 鈥� whether they be your own or someone else鈥檚鈥� hopefully this will give you some creative and fun ideas.

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