Ethosphere, a company developing a voice AI platform for retail operations, announced it has raised $2.5 million in a pre-seed funding round. The round was led by Point72 Ventures, with participation from AI2 Incubator, Carya Ventures, Pack VC, Hike Ventures, and J4 Ventures.
The new capital will be used to expand pilot programs with retail brands. The company's platform is designed to enhance the performance and training of in-store employees.
Ethosphere's technology uses large language models (LLMs) and voice AI to analyze data from in-store interactions. This data is processed to generate coaching insights and guidance for retail associates. The objective is to provide employees with actionable feedback to improve customer interactions. The company reports it has existing partnerships with several global retail brands.
“AI is bringing change to every industry, and retail is no exception, but there is a significant gap in how the technology can be applied in a useful, human-focused manner,” said Evan Smith, co-founder and CEO of Ethosphere. “Ethosphere wants to bridge that gap by empowering retailers to invest in their people, recognizing that a well-supported and knowledgeable team is the key to building exceptional customer experiences. This human-centric approach not only enhances brick-and-mortar purchasing but also directly impacts a company’s bottom line by fostering loyalty and driving sales. We’re partnering with major brands to achieve this goal.”
Founded in 2024 by CEO Evan Smith and CTO Ahad Rana, Ethosphere is headquartered in Seattle. Smith previously held senior leadership positions at Starbucks, focusing on operational strategies. Rana has an engineering background with previous roles at AOL, Google, and AWS.
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“In an increasingly busy landscape flooded with theoretical AI, Ethosphere stood out to us with a practical, powerful application that we believe has the potential to directly impact the sales and customer experience,” said Sri Chandrasekar, Managing Partner at Point72 Ventures. “We see their focus on augmenting, not replacing, human interaction as a critical differentiator, making their solution a deeply compelling answer in the evolution of retail.”
