Conversion Gets $28M for AI Marketing Automation Tool

Conversion, a startup focused on AI marketing automation, has secured $28 million in a Series A round. The investment was led by Abstract, with additional participation from True Ventures and HOF Capital. This new capital brings the company's total funding to $30 million.

The company was founded five years ago by UC Berkeley dropouts Neil Tewari and James Jiao. They initially developed the technology as an internal tool to automate their own marketing tasks before realizing its commercial potential. Consequently, they conducted extensive customer research with marketing executives to refine the product.

Targeting Legacy Platform Users

Conversion’s primary strategy involves targeting midsize businesses that are already using older platforms. The company reports that approximately 90% of its customers have switched from legacy applications like HubSpot or Salesforce Pardot. This approach focuses on clients experiencing limitations with their existing, less-automated systems.

The startup is nearing $10 million in annual recurring revenue.

The company built its platform with AI at its core, which allows it to automate complex workflows, organize leads, and personalize communications. While the market includes many AI startups and established players like Jasper, Conversion aims to differentiate itself by offering a fully integrated solution. This funding will therefore help the company scale its operations in a competitive field.