Driving change in e-commerce with Generative AI: Frontnow Secures €3.8M Seed Round


Driving change in e-commerce with Generative AI: Frontnow Secures €3.8M Seed Round cover
Frontnow founders Marc Funk, Cedric May and Bernhard Lihotzky.

Berlin, 12.03.2024Frontnow, a startup providing scalable AI solutions for e-commerce, today announces its successful seed financing. With a total of €3.8 million, the round is led by Peak, with participation from PROfounders, and Identity Ventures. The funding extends the company's technological lead while driving sales.

An impressive start & strong execution focus

Founded by seasoned entrepreneurs, we’ve been impressed by their diverse entrepreneurial backgrounds, commitment to swift execution, coupled with remarkable sales traction. Our confidence to invest in them stems therefore from their pragmatic yet ambitious approach, recognizing the team's realistic and forward-thinking vision. Undoubtedly, Frontnow positions itself as one of the most promising and innovative solutions.

Leveraging Generative AI to improve pre-sales KPIs

Global spending on conversational commerce is exploding at +60% CAGR until 2025.

Total spending over conversational commerce channels worldwide from 2021 to 2025, Statista.

Frontnow’s focus on omnichannel retailers, where customers often have multiple touchpoints between offline and online shopping, has the greatest potential. Pre-sales KPIs are where the money is left on the table: according to HBR, companies with good pre-sales engagement have win rates of 40-50% new customers and 80-90% return customers. Retailers must therefore provide the best possible support to their online shoppers. We’re convinced that Frontnow's solutions consistently provide more value to customers and enhance the overall shopping experience compared to traditional solutions.

“The most advanced solution for retailers to maximize long-term revenue, increase their gross margins”

But how does Frontnow work? It’s GenAI-powered SaaS solutions allow enterprise customers to connect with their desired e-commerce customers in a new, highly personalised and instant manner. By easily integrating into online stores, the Advisor, a virtual shopping helper, stands out as a symbol of this innovation. It offers customer guidance with relevant info, personalised suggestions, and engaging interactions. This enhances not just communication but also drives user conversation rates, cross-selling by suggesting additional products. Ultimately this ensures lasting competitiveness with better customer engagement.

Down the line, Frontnow’s customers generate more revenue with better margins, creating quick and tangible Return on Investment. This product expands the personalised shopping experience from physical stores to online shops. It is available in more than 100 languages 24/7 without extra staffing costs. The Advisor uses over 40 algorithms, including various Large Language Models, all trained on their customers' corporate data. The second product, Frontnow Enhance, improves product descriptions in online stores by enriching product data and adding context with a simple click. Customers benefit from SEO-optimized content that boosts rankings, increasing traffic and revenue.

Putting Peak’s expertise to work

“With Peak, PROfounders and Identity Ventures by our side, backed by their deep expertise and strategic commitment, we have found the ideal partners to extend our leadership. Together we’re setting new standards, combining our strengths, and focusing on sustainable growth” said Marc Funk, co-founder and CEO of Frontnow. “Last year, we managed to grow from zero to over 1 million ARR in just 9 months and this year, we aim to significantly exceed that growth. Our focus remains on customer value, as this is what ultimately determines our success or failure."

“With their scalable AI solutions, Frontnow provides the most advanced solution for retailers to maximize long-term revenue, increase their gross margins and stay ahead,” said Johan van Mil, Co-Founder and Managing Partner at Peak. “We are impressed by their achievements in such a short period of time and are delighted to be a partner on their journey.”