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Two young entrepreneurs from UC Berkeley just raised $28 million to scale their AI marketing automation startup. Conversion is the company they built. The founders dropped out of college to focus full time on growth. Their success story shows the rising impact of AI on marketing. Let’s explore how they raised funding, what drives their product vision, and why their early traction matters.
From Campus Dorm to $28M Series A for AI Marketing Automation
Conversion began as an experiment by two UC Berkeley students, Neil Tewari and James Jiao. They built simple automation tools on top of HubSpot to help manage their own outreach. After conducting interviews with over 160 marketing VPs from firms with 50 to 500 employees, they discovered a clear demand for smarter tools. Investors responded quickly. Conversion raised a $2 million seed round from early supporters. Then, at age 19, the founders dropped out and moved into a shared apartment to keep costs low.
On July 30, 2025, TechCrunch reported Conversion secured $28 million in a Series A led by Abstract Ventures, with participation from True Ventures and HOF Capital. The funding confirms investor belief in the startup’s mission and progress. Conversion has now raised around $30 million in total funding. According to reports, the business is nearing $10 million in recurring annual revenue. The majority of its customers are midsize firms that have replaced legacy platforms with Conversion’s AI-native solution.
The $28 million round will allow Conversion to expand its team, improve product features, and scale integrations. It also strengthens their ability to position Conversion as a modern alternative to older automation platforms relying on manual workflows and rigid designs.
AI Architecture and Strategy Behind the Marketing Automation Platform
Conversion touts a native AI marketing automation platform as its key differentiator. Unlike legacy platforms like HubSpot, Marketo, or Pardot, Conversion embeds machine learning into its core architecture. This allows automated lead enrichment, campaign generation, and personalized follow-ups without manual scripting.
The platform integrates seamlessly with existing CRM systems. It scans signals such as recent website engagement, competitor moves, and firmographics. Based on those inputs, the software automatically builds outreach lists and drafts customized messages. This real-time adaptability helps marketing teams scale outreach while tailoring messages effectively. The model reportedly uses neural networks inspired by a course Neil Tewari took at Berkeley.
Conversion claims 90 percent of its active customers are midsize businesses with previous dependence on older marketing tools. These clients are replacing legacy systems because they seek speed, personalization, and automation on a modern scale. Conversion’s founders argue their ethical AI approach—automations happen locally or via secure API—builds trust with business users.
With near $10 million in ARR, Conversion shows product-market fit. The founders say they are focused on tools that help GTM teams automate revenue systems without code. They envision thousands of marketing engineers using their platform in place of manual setup.
Challenges Ahead and Market Positioning in a Crowded Landscape
Despite early momentum, the AI marketing automation startup space remains competitive. Conversion faces established platforms like HubSpot, Adobe Marketo, and Salesforce Pardot. At the same time, it competes with newer players such as Jasper, Writer AI, Iterable, and Copy.ai. These rivals offer specialized AI features and may have larger teams or deeper product integration.
Key challenges include differentiating Conversion with robust CRM integration, maintaining high deliverability, and delivering value at scale. Midsize firms expect reliable performance as they switch platforms. Conversion must also continue iterating rapidly to keep pace with AI innovation, especially given developments from ChatGPT and other generative models.
Ethical and privacy considerations also matter. As AI-driven marketing expands, concerns about data handling, personalization boundaries, and user consent rise. Conversion has emphasized an ethical AI posture, but sustaining that trust requires transparency and clear safeguards.
Still, the founders lean into their early lean operations and community-building. Their strategy of targeting businesses switching from legacy automation tools helps carve a clear niche. They believe in growth through performance and referrals rather than marketing hype. That approach may attract firms tired of rigid legacy systems and tired marketing processes.
Why This Funding and Story Matters
- UC Berkeley founders dropped out to build a better future through innovation.
- $28M Series A led by Abstract shows confidence in their AI-led mission.
- Conversion nears $10M ARR and serves mostly midsize businesses seeking modern automation.
- Their platform embeds AI deeply and competes with legacy giants.
- They emphasize ethical AI and customer-first operations in a crowded startup landscape.
The AI marketing automation startup Conversion now stands as a symbol of how AI can power growth. With clear product-market fit and strong funding, its next challenge will be scaling carefully while preserving trust and differentiation. Emerging founders and GTM teams should watch closely as they grow.
In other startup news, Clay Hits $3.1B Valuation in $100M Fundraise Led By CapitalG
