AI-powered marketing automation startup Conversion, founded by two UC Berkeley dropouts, has recently secured a $28 million Series A funding round. This remarkable journey from a dorm room idea to a multi-million-dollar business is nothing short of inspirational.
The Founding Story
The co-founders, Neil Tewari and James Jiao, met at UC Berkeley, where they shared a dream of starting their own company. Their initial projects ranged from product placement ads to building automation features on top of existing platforms like HubSpot. What started as an internal tool for their own use quickly turned into a viable business idea after conducting over 160 customer interviews with marketing executives.
The Breakthrough
With the advent of ChatGPT, the duo saw an opportunity to integrate AI deeply into marketing automation, offering features like lead organization and personalized follow-up emails. This innovation has propelled Conversion to nearly $10 million in Annual Recurring Revenue (ARR), with 90% of its customers being midsize businesses replacing legacy apps.
The Competitive Landscape
Despite entering a crowded market with giants like HubSpot, Adobe Marketo, and Salesforce Pardot, Conversion has carved out a niche by focusing on businesses using older marketing tools. The founders' frugal approach to funding and their relentless focus on customer needs have been key to their success.
The Future
With a total of $30 million raised, the founders have come a long way from sharing a cramped apartment with five roommates. Today, they're leading a company that's not just surviving but thriving in the competitive AI marketing automation space.
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