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A Sydney startup that leverages machine learning to help e-commerce brands optimise ad spend across Google, Meta, TikTok, and Microsoft platforms has opened its first US office, marking a significant milestone for Blend AI which now has more than 250 clients across 21 countries.
Founded in 2020 by software developer Michael Bezman and Argo Logic co-founder Dean Krowitz, the company helps eliminate the waste, complexity and high management costs typically associated with digital advertising on the major global platforms, automating the entire advertising process from campaign creation and targeting to real-time optimisation.
The company raised $1.5 million in 2022 in a round led by Sydney-headquartered venture fund EVP, which has since followed up twice to lift its total investment to almost $3.6 million.
Having helped brands sell everything from pet products to babywear to furniture, Blend AI has received increasing interest from the US where it has helped businesses scale rapidly, prompting the decision to set up an office in Austin, Texas.
Blend AI chose the location due to its vibrant tech ecosystem and supportive startup environment, with the office enabling the company to collaborate more closely with its expanding US client base.
"With the rapid evolution of AI and ecommerce, businesses can leverage smarter advertising technology to free up cash flow and time - letting them grow sales while they sleep," says co-founder Dean Krowitz.
"Our expansion into the US unlocks massive growth potential, enabling us to bring Blend AI to ecommerce brands looking for an edge in one of the world’s largest markets."
Blend AI played a pivotal role in the success of Lalabu, a Minnesota-based brand famous for its Dad Shirt with a built-in kangaroo pouch for hands-free babywearing, helping it become a viral sensation with "skyrocketing sales".
"Digital advertising is overwhelming for many business owners, especially in the US," says Bezman, who is both co-founder and CEO of the startup.
"Our AI, data driven approach levels the playing field, enabling brands like Lalabu to optimise ad spend and connect with the right customers at the right time - all without a large in-house marketing team."
Prior to its US expansion, Blend AI had already delivered strong results for e-commerce brands in its home market including Jones & Co, Shoe Me, Olivia Jean, Milk & Honey wigs, Saltwater Picnic Co, Smart Kids, Kick Push and more.
"Our mission is simple. We want to empower ecommerce brands to focus on actually running their businesses and do what they do best - creating amazing products and experiences for their customers - while our AI handles the complexities of digital advertising," adds Bezman, who prior to founding Blend AI worked as a research and development manager for Israeli tech company VocaVu and helped develop art information platform MutualArt.com.
Bezman, who has worked with startups for 20 years across Australia, the US and Israel, where he has also worked as a consultant to the Israeli Defence Forces (IDF), said in a Q&A with EVP that BlendAI started as a solution for a customer that had difficulties spending their advertising budget.
"We created a solution for them, but believed it might be useful for other businesses too. Unfortunately none of our clients were willing to pay for it," he said.
"We almost forgot about it until I met someone in Australia who asked me why we didn't do it for e-commerce. At the time I didn’t know much about the space, but when we started speaking to people, we understood that there was an opportunity.
"We quickly pivoted and built a new business around eCommerce. We quickly built an MVP (minimum viable product) to prove to ourselves that it actually can work and that people are willing to pay for it. By mid 2020, we had a working prototype and we started speaking to prospective customers."
Bezman reflected on the early challenges as a startup founder learning new skillsets.
"I'm always trying to push myself out of my comfort zone. And while my comfort zone was building technology, I had never worked with small stores, made sales calls and provided customer support," he said.
"It was a pretty big challenge for me, but I learned a lot about the importance of speaking with the customer and truly listening. I believe all software developers, especially in startups, need to listen to sales and customer success calls.
Blend AI currently has 11 employees in Australia, five in Europe - primarily in Poland - and one in the US.
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