According to Bloomberg, Instacart, an online grocery delivery startup, has raised $400 million at a $3.4 billion valuation. The largest investment came from Sequoia Capital, which was joined by Andreessen Horowitz, Khosla Ventures, Kleiner Perkins Caufield & Byers and Thrive Capital. New backers include Y Combinator's Continuity fund and Wellcome Trust.

Instacart is the only service that can deliver groceries from multiple local stores within an hour, and is often less expensive for consumers than a personal, time-consuming trip to the grocery store. Customers can choose from a variety of local stores including Safeway, Trader Joe's, Whole Foods and Costco, and can mix items from multiple stores into one order. Instacart is disrupting the traditional grocery delivery business with its approach, which utilizes a crowdsourced model for Personal Shoppers and needs no warehouses or trucks.