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AI marketing pioneer Phrasee raises £1m in seed funding

Phrasee, the AI marketing firm, has announced it has raised £1m in seed funding as it looks to scale-up its business.

The London-based software business, which has developed AI marketing software that aims to boost email response rates, has drawn investment from communications group Next 15 and angel syndicate Galvanise who will both take a minority stake in the company.

Utilising a proprietary algorithm, Pharsee’s software claims to outperform human-generated attempts at creating eye-catching emails through its system of progressively optimised subject lines.

Now the Putney firm is looking to expand both domestically and internationally thanks to the new investment and grow its client base.

Phrasee Chief Executive Officer Parry Malm commented: “We founded Phrasee with the goal of creating a scientifically-based way of encouraging people to open emails, boosting response rates and subsequently generating greater revenue for the sender.

“Having been able to demonstrate the efficacy of our approach and demand for our product in our first year of operation, we are greatly encouraged by the support of Next 15 and Galvanise in taking the business to its next stage of growth.”

Tim Dyson, Chief Executive at Next 15 believes the marketing firm fits into the groups focus on supporting and developing ‘innovative companies’ that mix data science and technology.

He added: “Phrasee matches our strategic focus perfectly and offers an exciting venture for us to partner in. Through our funding and access to valuable networks, we will help Phrasee to increase its UK client base and assist the company in raising its profile in the US market.”

Devina Paul of Galvanise Capital and non-executive director of Phrasee has grand predictions for the startup which could become a ‘true London success story’.

She said: “Founded by three of the world’s leading authorities on AI and digital marketing, they have built a startup that has grown tremendously in little over a year. As demand for AI-based marketing products grows, we firmly believe that Phrasee will be on the crest of this wave on a global scale.”

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