In a weird economy with plenty of Americans bracing themselves for a recession, companies' marketing teams are having a harder time than ever trying to prove their worth.
One startup is working to change that, and it just raised a fresh round of funding to help marketing teams use generative AI to quantify how their ad campaigns drive sales.
The startup, Paramark, just launched from stealth and raised a $6 million seed funding round led by Greylock. Former chief marketing officers at Dropbox, Salesforce, and Amazon also participated in the round.
Paramark previously raised an unannounced, $2 million pre-seed funding round, bringing its total VC funding to $8 million.
Founded in 2022, Paramark is building a data collection tool that shows the incremental value a marketing campaign has on a company's sales. The tool, which is powered by generative AI, can be modified to show the sales effect of running more or fewer ads through multiple marketing channels, such as TV, email, or social media.
These AI-powered forecasts can then be used to improve the working relationship between a company's marketing and finance teams, the latter of which is looking for data to green-light a budget for a new or recurring ad campaign.
Paramark launched its initial product in 2024, with clients including Square, ClickUp, Speak, and Chime. Paramark co-founder and CEO Pranav Piyush said the startup is already planning to roll out new tech advancements both externally to clients and internally with employees.
One of these is the potential of building out AI agents that work alongside human users on the Paramark platform to forecast and plan budgets.
"We've identified several critical areas within our roadmap that can now be done differently because of agents and AI," Piyush told BI.
Additionally, Piyush said that all of Paramark's employees are using tools like ChatGPT, Claude, Cursor, and Perplexity in their day-to-day work.
"Whenever a new use case arises and we start evaluating new tools, we look for opportunities to leverage AI, whether DIY or baked into the tools we're adopting," he said.
AI is expanding into the marketing space, with multiple startups exploring generative AI and AI agents to increase output and cut costs.
Some are playing in Paramark's arena of AI and analytics, such as Prescient AI, which uses AI to analyze and maximize ad campaign revenue, and raised a $9 million Series A in early 2024; and Measured, a startup that uses AI to measure the incremental value of advertising to business outcomes, which raised a $21 million Series a in 2022 led by Telescope Partners.
Check out the 34-slide pitch deck that Paramark used to raise its $6 million seed funding round.
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