By Riley Kaminer
Today, Ad campaign revenue optimization startup Prescient AI announced it has raised a $10 million Series A funding round led by Headline and Delray Beach-based CEAS Investments, with participation from existing investors Blumberg Capital, Focal VC, and a smattering of angels. Overall, the company has raised $18 million in venture capital – including a $4.5 million seed round almost one year ago and a $1.7 million pre-seed in 2021.
Prescient AI has made a name for itself by developing an artificial intelligence-powered marketing simulation and prediction platform. The goal: to help eCommerce and direct-to-consumer brands make the most of their ad spend.
The team has demonstrated they are building the next generation of marketing mix optimization tools for ecommerce brands, said Ronnie Martinez of CEAS Investments. “Unlike anything else on the market, their AI solution gives pinpointed recommendations, while considering and quantifying the impact of cross-channel awareness via halo effects.”
Co-founders Michael True and Cody Greco launched Prescient AI in earnest in February 2023. “On September 29th, 2023, we launched our second AI model, showing marketers exactly how to spend their media dollars,” CEO True said in an interview with Refresh Miami.
Now, Prescient AI has some of the most prominent brands in its user base, including Khloe Kardashian’s fashion brand Good American, Miami mattress merchant Eight Sleep, and luxury loungewear retailer Cozy Earth.
The case studies speak for themselves. For example, online cookware brand HexClad’s use of Prescient AI resulted in a 30% increase in ROAS (return on ad spend) and 85% more revenue. Meanwhile, Prescient AI helped Good American achieve a 32% increase in ROAS, a 35% growth in traffic, and a 58% lift in paid-media-driven revenue.
True signaled that Prescient AI will leverage these funds from the Series A to expand their team from 12 to 30 people. They will be hiring for a diverse range of roles such as marketing, customer success, data engineering, and data science.
In part, Prescient AI’s success stems from the uniqueness of the platform, True says. For instance, onboarding takes only around 15 minutes, with initial datasets being ready for analysis within 36 hours.
Equally, Prescient AI has been undertaking R&D for the better part of four years, enabling its platform to provide more reliable and accurate insights than its competitors – of which there are an increasing number, due to the recent proliferation of AI tools. That said, True noted that the recent boom in AI has also helped Prescient AI: “It has created awareness that brands need an AI strategy.”
“We’re at the intersection of one of the most monumental shifts of data privacy, which impacts media measurement, and the explosion of AI,” True added. “Both of these impact every single company in the world that’s advertising online. They’re all suffering from the same problem of data privacy and measurement, and they’re all going to be looking for an AI model. We’re just so perfectly positioned to become one of the leaders in that space, regardless of the vertical.”
READ MORE IN REFRESH MIAMI:
- Prescient AI raises $4.5M to help DTC brands advertise on a privacy-first internet
- eCommerce education platform smartBeemo secures $6M fundraise
- OpenStore Live puts spotlight on the journeys and learnings of eCommerce rockstars
- Gaming monetization marketplace Scuti secures $10M
- Myko, an AI startup for sales and revenue teams, attracts seed round led by Khosla Ventures
