Melius, a startup founded by former engineers from Ramp, has raised a total of $25 million, including a $20 million Series A led by CRV and a $5 million seed round led by General Catalyst. After launching over a year ago as an AI-powered performance marketing tool, the founders quickly realized their original product lacked viability. They decided to pivot entirely, scrapping their previous code and redirecting efforts to developing a platform that generates creative assets and ad campaigns using AI.

The new Melius platform, unveiled nearly a year after the original launch, acts as an “agents lab for creative work,” enabling marketers, ad agencies, and brands to create images, videos, and campaigns with AI assistance. The startup grew rapidly post-pivot, claiming to have reached over $1 million in annualized revenue within two months after emerging from stealth in July. Melius recognizes the competitive landscape, citing rivals like Higgsfield, valued at $5.4 billion, alongside startups such as Krea and Flora AI.

Co-founder Joowon Kim attributed his personal passion for digital media, dating back to childhood vlogging attempts and a keen interest in video creation, as a motivating factor behind building Melius. He envisions the tool serving both novices and experienced creative professionals by simplifying the realization of creative ideas through plain-language commands. Despite fierce competition, Kim remains optimistic about market demand, noting the industry’s capacity to support multiple players.

Melius’ pivot highlights a strategic shift in AI marketing technology, choosing to focus on automating creative generation rather than ad spend optimization. With substantial funding backing from top-tier venture capital firms and early revenue traction, Melius aims to carve out a strong position in the evolving market for AI-driven ad creation tools. The startup’s New York-based founders bring engineering expertise from Ramp and a fresh vision aligned with the broader AI content generation trend.