We are psyched to welcome Intelligems to the Stage 2 portfolio!
Stage 2 led the $9M Series A, investing alongside our friends at Vinyl and Matchstick. Read more about the round in Intelligems’ announcement.
The Opportunity: A Pivotal Moment in E-Commerce
The e-commerce landscape has grown increasingly complex. Today, there are more than 13,000 merchant applications on Shopify alone. On top of that, customer acquisition costs continue to fluctuate, shipping expectations have evolved, and promotion strategies are more sophisticated than ever. This has created a highly fragmented experience for brands, which have to manage these applications in isolation.
Intelligems is positioned to become the central nervous system for e-commerce brands to make smarter, data-driven decisions and turn every visitor into a profitable customer. The company analyzes key factors and then evaluates the intersection of every element to optimize the overall performance. Factors include:
- Shipping rates: How much should you charge for shipping? Where should the free shipping cutoff line be?
- Pricing: A/B testing to maximize profit, revenue, and conversion
- Promotions: How much? When? To whom?
- Content: Does this image convert better than that image? Which Shopify theme is best for my store? What copy works best?.
Market Timing: The Google Optimize Effect
Timing in startups is everything, and Intelligems has capitalized on a significant market shift. When Google deprecated its Optimize product in September 2023, it created a vacuum in the market that Intelligems was perfectly positioned to fill.
These pivotal market shifts often create outsized opportunities for well-positioned startups, and we believe Intelligems seized that moment to kickstart a much bigger vision. If they can successfully define a new market around e-commerce profit growth, Intelligems stands to become the clear market leader in this nascent but potentially large segment.
The Team: Coming Together in a New Market
Co-Founders Drew Marconi and Adam Kitain previously worked together at rideshare startup Via, where they collaborated to build the dynamic pricing function. This experience gave Drew and Adam in-depth experience into the complexity of pricing — and how it affects every e-commerce business. Who better to come together again to solve pricing, with a profit-first lens, in another industry? This team is grounded in data and have pushed for efficiency in their business at every turn. They’ve surrounded themselves with an incredibly intelligent, driven group of leaders who are ready to capitalize on the opportunity ahead.
What ultimately convinced us to lead this investment? An exceptional team, undeniable product-market fit, and perfect market timing. Oh, and they’re hiring! Check out their open roles here.