TLDR: Conversion, an AI-powered marketing automation startup founded by UC Berkeley dropouts, has successfully raised $28 million in Series A funding. This investment, led by Abstract Ventures with participation from True Ventures and HOF Capital, brings their total funding to $30 million. The company aims to expand its platform, which leverages generative AI to automate and personalize marketing campaigns, targeting midsize businesses transitioning from legacy systems.
Conversion, a pioneering AI marketing automation startup, announced on July 30, 2025, that it has secured $28 million in a Series A funding round. This significant investment was spearheaded by Abstract Ventures, with additional contributions from True Ventures and HOF Capital. The latest funding round elevates Conversion’s total capital raised to $30 million since its inception, following a previous $2 million seed round.
Founded approximately five years ago by UC Berkeley dropouts Neil Tewari and James Jiao, Conversion has developed an AI-native platform designed to revolutionize marketing automation. Unlike traditional marketing tools that often retrofit AI capabilities, Conversion’s core architecture is built on artificial intelligence, enabling real-time campaign adjustments and highly accurate consumer behavior prediction. The company’s proprietary AI models, rooted in Tewari’s neural network coursework, allow businesses to automate complex tasks without manual intervention, integrating seamlessly with existing CRM systems to enrich contacts, organize leads, and generate personalized follow-up emails.
Conversion primarily targets midsize businesses, reporting that approximately 90% of its customers have migrated from older marketing software like HubSpot and Salesforce Pardot. This strategic focus on businesses seeking to upgrade from legacy systems has contributed to the company nearing $10 million in annual recurring revenue (ARR). The startup operates in a competitive landscape alongside other AI-native tools such as Jasper and Writer AI, underscoring the increasing importance of generative AI in the marketing sector.
Also Read:
- Streamline AI Secures $8.6 Million in Series A Funding to Revolutionize In-House Legal Operations
- Hightouch Secures Strategic Investments from Snowflake and Capital One to Advance AI-Powered Marketing Solutions
This funding infusion is expected to enable Conversion to further expand its platform and assist more businesses in enhancing marketing productivity through AI-driven workflows. The company’s rapid growth reflects a broader market trend where AI marketing tools are delivering measurable returns, with current data indicating that 69.1% of marketers now utilize AI to improve operations, leading to a reported 39% increase in ROI and a 37% reduction in marketing costs. The AI marketing market is projected to reach $47.32 billion by 2025, with 88% of marketers anticipated to incorporate AI into their operations, positioning Conversion to capitalize on this growing demand.
