Ex-Ramp engineers raise $20M for platform Melius after scrapping their first product

AI-powered creative asset generation now has significant investor backing, making it easier to produce marketing content.

Melius, an AI platform for generating ad campaigns, images, and videos, announced it has secured $25 million in funding. This includes a $20 million Series A round led by CRV and a $5 million seed round backed by General Catalyst. The company, founded by former Ramp engineers Joowon Kim, Young Kim, and Arnav Ramu, initially launched over a year ago with a performance marketing tool. However, after six months, the founders decided this direction lacked potential and scrapped the entire codebase to pivot. The refocused Melius now offers an "agents lab for creative work," aiming to simplify the creation of ad assets and campaigns using natural language. The startup claims to have achieved over $1 million in annualized revenue within two months of its July stealth launch.

The pivot from an AI-powered performance marketing tool to a creative asset generation platform signals a significant shift in focus for Melius, driven by the perceived larger opportunity in AI-driven content creation. This move highlights the startup's agility and willingness to discard a developed product to pursue a market they believe has greater potential, despite the competitive landscape including well-funded companies like Higgsfield.

The substantial funding secured by Melius indicates strong investor confidence in the AI creative tools sector. This influx of capital suggests that venture capitalists are actively seeking and investing in platforms that can automate and enhance the creation of marketing content, potentially accelerating innovation and competition within this rapidly evolving space.