Neil Tewari and James Jiao, both 24, are recent graduates of the University of California, Berkeley. As we told you recently, they were the first to found, fund and grow a startup powered by generative AI – marketing automation venture Conversion. The company, which was founded just five years ago, has rapidly made waves in the tech world. Just a few months back, it closed a $28 million Series A funding round led by Abstract, with participation from True Ventures and HOF Capital. With this new round, Conversion’s total funding comes to a remarkable $30 million, including a $2 million seed round.
At age 19, Tewari and Jiao dropped out of college, dedicating themselves full-time to their entrepreneurial endeavor. They began their journey out of a small, two-bedroom apartment with five other roommates. Once there, they began to set the stage for what would go on to become an incredibly successful company. In the intervening years, both founders moved up to private apartments, an indication of their newly-won success.
Transformation serves especially midsize firms that have chosen to phase out old legacy applications in favor of its forward-looking platform. Approximately 90% of its customer base falls within this category, demonstrating the startup’s focus on established businesses rather than new startups seeking their first tools.
In fact, the founders’ previous experiences in entrepreneurship were all over the place. Before launching Conversion though, Tewari and Jiao had each personally pursued dozens of product concepts. Their winning idea was meant to streamline the process for marketers looking to purchase product placement ads. Their persistence absolutely served them well when they set off on the voyage that brought them Conversion.
To create their product, Tewari and Jiao hopped on the phone with their future customers. Tewari noted, “We actually spent like two months doing like 160 customer interviews with VPs of marketing, 50- to 500-employee businesses, and got a much more positive response than we could have imagined.” Because of this deep dive into market research, they were able to fine-tune their services and understand what their customers needed the most.
Conversion has celebrated some fantastic growth over the last 2 years, approaching $10MM ARR (annual recurring revenue). Much of that success has come from their company’s power to help enrich contacts, automate workflows faster, and keep their users connected. Tewari made a strong case for these functionalities, explaining that they’re absolutely critical to helping marketing become more efficient with their spend.
Reflecting on their entrepreneurial journey, Tewari shared how Jiao’s support played a pivotal role in their startup’s inception. “I told him I had this interest [in entrepreneurship], and four years later, he was actually the first person to write us a check into the company,” he recounted. This dynamic partnership set Conversion basketball up for continued success.
Conversion’s mission is to be the best possible partner to midsize businesses. As they progress, they will continue to improve their products to create better user experiences. Investors are making a huge bet on the young startup, and customers are making a fuss. This makes them well positioned for growth in the fast-paced and competitive marketing automation arena.
