How 2 UC Berkeley dropouts raised $28M for their AI marketing automation startup

The AI-driven marketing automation company Conversion, co-founded by two former UC Berkeley students, has successfully secured $28 million in a Series A funding round led by Abstract, with contributions from True Ventures and HOF Capital. The journey of these young entrepreneurs resembles a plot straight out of a tech-themed television series. The story begins with Neil Tewari, now 24 and the CEO of Conversion, who faced disciplinary action in high school for watching a TechCrunch Disrupt livestream during class. After being sent to the principal's office, he found himself in an awkward situation trying to explain to a family friend why he needed a ride home. This incident sparked his passion for entrepreneurship, which would come full circle years later when that same friend became one of the first investors in their startup. Tewari’s college roommate, James Jiao, now the CTO of Conversion, shared a similar ambition of launching a business. Together, they experimented with various product ideas, including one aimed at facilitating product placement ads. Their breakthrough came when they began using HubSpot for their marketing needs and identified gaps that could be filled with additional automation features. "It started as an internal tool for us," Tewari explained, noting their enjoyment of developing this tech. After conducting around 160 interviews with marketing executives from mid-sized companies, they discovered a strong demand for their solution. This insight led them to secure a $2 million seed funding round, prompting the duo to drop out of college at 19 to commit fully to Conversion. Living on a shoestring budget, they shared a cramped apartment with five roommates, all while focusing on product development. As they advanced, the emergence of ChatGPT and rising AI trends positioned Conversion favorably in a competitive market. Tewari indicated that their platform offers advanced features like lead organization and automated personalized follow-ups. With a robust business model, Conversion is nearing $10 million in annual recurring revenue (ARR) and has attracted a solid customer base, primarily consisting of mid-sized businesses transitioning from legacy systems. While they face competition from established players like HubSpot and Salesforce, Tewari remains optimistic, strategically targeting companies that have yet to modernize their marketing tools. The startup has raised a total of $30 million, enabling the founders to upgrade their living arrangements, marking a significant milestone in their entrepreneurial journey.