TL;DR:
- Qloo, a New York-based startup, raises $25 million in Series C funding.
- Founded in 2012 by Alex Elias and Jay Alger, Qloo applies AI to identify complex taste and culture patterns.
- Qloo offers AI-generated correlation data across various entertainment and culture domains.
- The company assures data privacy and adherence to privacy laws like GDPR and CCPA.
- Major clients like Starbucks, Hershey’s, and Netflix utilize Qloo’s AI for tailored experiences.
- Qloo plans to expand its team and pursue mergers and acquisitions with the new funding.
Main AI News:
In today’s dynamic AI landscape, GenAI stands out as a notable productivity enhancer, effortlessly producing visuals, correspondence, melodies, and more in record time. However, amidst the buzz, one of AI’s most impactful long-term applications lies in uncovering the subtle correlations that evade human perception. Consider this: enthusiasts of horror films might harbor a penchant for certain exotic cuisines, while aficionados of sitcoms might indulge in true crime podcasts.
Qloo, a prominent New York-based startup, has positioned itself at the forefront of leveraging AI to decode these intricate patterns of taste and culture. Established in 2012 by Alex Elias and Jay Alger, Qloo is dedicated to unveiling consumer behaviors and trends spanning entertainment, fashion, travel, sports, gastronomy, and various other sectors. Elias, a graduate of NYU Law School, identifies a crucial gap in the market, which he terms “taste knowledge.”
“As a fervent advocate for culture—proficient in playing the tenor saxophone and piano, with a profound appreciation for midcentury cinema—I recognized the fragmented landscape of taste knowledge,” Elias shared in an exclusive interview with TechCrunch. “While companies like Spotify, Expedia, and Netflix have carved niches in their respective domains, creating data silos, there remains a lack of a unified system capable of comprehending and forecasting diverse personal tastes across different realms, independent of identity-based data.”
Teaming up with Alger, who brings extensive experience from leading the digital marketing agency Deepend, Elias spearheaded the launch of Qloo.
Today, Qloo offers enterprises AI-generated correlation insights across an array of cultural and entertainment domains, including cinema, travel, nightlife, literature, and more. Harnessing the platform’s understanding of a user’s preferences in one category enables tailored recommendations in others; for instance, applying TV preferences to gaming choices.
“Qloo operates a sophisticated AI-powered insights engine fueled by behavioral data sourced from consumers worldwide,” Elias emphasized. “Our proprietary AI models have the capability to identify trillions of connections among these entities. With an in-depth comprehension of consumer behavior spanning over 575 million entities globally, our technology facilitates contextualized personalization and profound insights into the intricate web of people’s tastes.”
Yet, Qloo’s extensive utilization of personal data prompts scrutiny. Elias reassures that the company doesn’t rely on personally identifiable information and adheres to privacy regulations like GDPR and the California Consumer Privacy Act.
“Qloo upholds a comprehensive Ethics Policy, prioritizing ethical, transparent, and responsible AI development and deployment, alongside robust data privacy and security measures,” Elias affirmed. “We strictly refrain from leveraging any form of personally identifiable or copyrighted information in our modeling pipelines.”
Despite concerns, major clients are embracing Qloo to elevate their product offerings. Starbucks leverages Qloo to curate in-store playlists tailored to local communities, Hershey’s customizes candy assortments with Qloo’s insights, and Michelin enhances its Guide App recommendations with Qloo’s data. Netflix utilizes Qloo’s technology to refine merchandising strategies by pinpointing actors resonating with specific demographics.
These high-profile partnerships, along with approximately 60 others, including PepsiCo, Samsung, The New York Mets, BuzzFeed, and Ticketmaster, are propelling Qloo toward profitability. The company monetizes its platform through monthly subscription fees for API access, with contracts commencing in the “five figures.”
Having secured $25 million in a Series C funding round led by AI Ventures, with participation from AXA Venture Partners, Eldridge, and Moderne Ventures, Qloo is primed for expansion. Plans include developing a self-service research tool for marketers and small-medium enterprises, alongside introducing a “multi-person recommendation AI” capable of matching profiles based on preferences—potentially revolutionizing dating apps.
“The confluence of privacy and AI trends has decisively overshadowed any setbacks from tech deceleration,” Elias remarked. “Qloo has witnessed widespread contract expansions from existing clients, keen on accessing new data domains and taste knowledge areas, as well as exploring new applications like generative itinerary planning and dynamic personalization. Additionally, there’s growing interest from emerging markets such as real estate, coupled with accelerated sales cycles across the board despite heightened compliance standards.”
Armed with fresh capital, Qloo aims to double its team from 50 to over 100 personnel by year-end and explore strategic M&A opportunities. With its 2019 acquisition of TasteDive, an entertainment recommendation engine, Qloo hints at future acquisitions aligned with its core strategy.
Conclusion:
Qloo’s successful funding round underscores the growing importance of AI-driven personalization in various industries. With major clients leveraging its technology for tailored experiences, Qloo’s expansion plans and focus on data privacy highlight its commitment to ethical AI development. This signals a shift towards more sophisticated, data-driven approaches to consumer engagement and underscores the potential for AI-powered solutions to drive market growth and innovation.
