Ocurate raises $3.5M to show customer lifetime value for B2C companies
- ByStartupStory | December 23, 2021
Ocurate, a startup using artificial intelligence to predict customer lifetime value for e-commerce businesses, took in an oversubscribed seed round of $3.5 million. Backers in the round include 8-Bit Capital, DCF Capital, Data Community Fund, AIX Ventures, Italmobiliare, Streamlined Ventures and some individual strategic angel investors like Adam Metzger and Mazen Al-Jubeir.
Tobi Konitzer, founder and CEO of Ocurate, founded the company in July to establish lifetime value as an organizing principle for business-to-consumer companies. Konitzer, who was previously co-founder and CEO of PredictWise, told the company’s “secret sauce” is a SaaS deep machine learning framework optimized over Ocurate’s proprietary database and customer data that exceeds 90% accuracy at predicting people’s behavior.
Currently, companies use metrics they evaluated themselves, and often look at cost per click or action and then retention. Konitzer believes lifetime value is a better prediction of how much profit a customer will bring to the company.
Ocurate’s database started with voter rolls and now has collected data from more than 300,000 Americans, he said. It also pulls data in from clients; for example, if you are a Netflix subscriber, the data might include login data, telemetry data and what was purchased in the past.
“Ocurate’s technology allows our clients to take actions on lifetime value confidently at all stages of the life cycle, which has a significant impact on our customer’s overall business with a potential increase of gross profit by over 15%,” Konitzer added. “Lifetime value should be the thing that governs everything.”
Though established five months ago, Ocurate is already working with four clients — with dozens in the pipeline — and has brought in over $400,000 in annual recurring revenue since launch.
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