On the occasion of Copy.ai’s first anniversary launch on twitter, the company, an AI-powered GPT-3 platform that generates writing tools for business clients, has secured another round of funding.
This time around, the company completed an $ 11 million Series A funding round, led by Wing Venture Capital, with participation from existing investors Craft Ventures and Sequoia, and new investors including Tiger Global and Elad Gil. This follows a $ 2.9 million funding round announced in March and brings the company’s total funding to $ 13.9 million.
Copy.ai’s software costs $ 35 per month and can, for example, write a blog post preview based on a few sentences and create link descriptions for Facebook ads and even generate corporate currency.
A year since CEO Paul Yacoubian and Chris Lu co-founded the company, the company records $ 2.4 million in annual recurring revenue. Not yet profitable, the company has doubled its revenue in the past year and has grown from three employees to 13, Yacoubian told TechCrunch.
Although he had raised funds earlier this year, he and Lu felt the time had come to embark on a Series A to expand the team and hire more engineers to provide the capability for new product features. . A recent feature is Editor, which allows users to organize their thoughts, save ideas, and edit notes right in the app. Copy.ai also develops products for creating long content.
“AI is good at pattern matching, and when you give it more information about a business, it can assume the identity of the business. to register too, ”added Yacoubian.
The company will invest the new capital in hiring. It’s a fully remote team with employees across the country. Copy.ai already has more than 300,000 marketers using its tools, such as eBay, Nestlé and Ogilvy. Over 3,000 have signed up for a free trial since the roundtable and it has over 10,000 premium customers.
Copy.ai is at the start of natural language AI generation, something Yacoubian said the company is only scratching the surface of, so it will continue to improve the base app experience and quality of the app. generated text.
The founders also reached an agreement with Wing Venture Capital partner Zach DeWitt, who Yacoubian says understands the company’s vision and how artificial intelligence can help marketers.
“Looking at the creative capacity of AI, we hear a lot about automation that kills jobs, but not a lot of stories about creating value for yourself or your business,” Yacoubian added. “If AI progresses, it will be a source of empowerment and another tool with uncapped potential. It’s interesting how it can free up human capital, and in a small business that can’t afford full time agencies, provide a quick and easy tool that solves their problem.
DeWitt said customers are moving fully online as digital penetration increases and businesses need to meet customers wherever they are, whether through newsletters, blogs, social media or emails.
While chatting with Copy.ai’s small business clients, he felt that the amount of content written was overwhelming for some, and for marketers or founders to write great copy, AI is the key. best way to do it.
DeWitt, himself, used the product to generate his first email to the company. He also writes a weekly blog and is active on Twitter. Copy.ai’s products therefore come in handy when he is thinking about blog post ideas and content formats, he said.
He added that the company is one of the most dynamic Wing has encountered for such a young company. They also take advantage of social media to make their metrics public, which in turn generates loyalty and also offers them a way to learn in public, which initially attracted Wing to the business.
“This round was massively oversubscribed so you can get a feel for the interest in the company, the quality of the team and their traction,” added DeWitt. “Chris and Paul have had the luxury of being selective in which investors they choose to prepare them for future success.”