Summary:
Two UC Berkeley dropouts founded Conversion, an AI marketing automation startup, and raised $28 million in Series A funding
The idea stemmed from their own need for better marketing tools, leading to 160 customer interviews and a clear market demand
Living frugally in a small apartment with five roommates, they dedicated themselves to building Conversion
Integration of AI features like lead organization and personalized emails has driven the company to nearly $10 million ARR
Despite competition from legacy and AI-native tools, Conversion targets businesses using older marketing software
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 began when co-founder and CEO Neil Tewari was caught watching a TechCrunch Disrupt livestream in high school, sparking a passion for entrepreneurship that would eventually lead to the creation of Conversion.
The Founding Story
- Neil Tewari and James Jiao, roommates at Berkeley, shared a dream of starting their own company. Their initial ventures included a product for marketers to buy product placement ads.
- The idea for Conversion was born out of their frustration with existing marketing tools. They built additional automation features on top of HubSpot, initially for their own use.
The Breakthrough
- After conducting 160 customer interviews with marketing executives, they realized the potential of their tool. The positive feedback led them to drop out of college at 19 to focus full-time on Conversion.
- Their frugal lifestyle, living in a cramped apartment with five roommates, reflects their dedication to the startup.
The Rise of Conversion
- With the advent of ChatGPT, Conversion integrated AI to offer features like organizing leads and automating personalized follow-up emails.
- The company is nearing $10 million ARR, with 90% of its customers being midsize businesses replacing legacy apps.
The Competitive Landscape
- Conversion faces competition from legacy tools like HubSpot, Adobe Marketo, and Salesforce Pardot, as well as AI-native startups like Jasper and Writer AI.
- Despite the crowded market, Tewari remains confident, targeting businesses using older marketing tools rather than startups.
The Future
- With a total of $30 million raised, the founders have upgraded their living conditions, symbolizing their startup's growth and success.
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