Sisters Power Nectar to $10.6M Funding, Unveil Game-Changing Marketing Tech

Seattle sisters Misbah and Farah Uraizee just announced $10.6 million in funding for their Nectar Social AI-native social operating system. The marketing tech platform for social media is intended to bypass classic advertising models to deliver stronger sales and financial returns for clients. According to the founders, this segment will generate $3 trillion in sales globally by 2026.

According to GeekWire, the 2023 startup wants to help brands do two things. First, move to the front of the line when consumers click around social media platforms. Second, personalize AI conversations that move the consumer toward a buying decision. This two-pronged strategy, if successful, could mark a challenge to traditional methods of marketing digitally through ads, emails and text messaging.

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Nectar algos review comments, tags, replies to content, direct messages and other data the sisters say are invisible for most brands. They insist this tiny space will yield stronger sales and profits for their clientele because, with marketing relationships in place, these tools can feed product choices that are perfectly tailored to AI discoveries.

The Uraizees list three primary goals for their startup:

A place where social listening, community management and revenue attribution work together.
A platform where AI acts like a strategic teammate, not just a chat bot.
A social operating system designed for real engagement, not just publishing.

Eight funds participated in the cash infusion, reflecting healthy interest in this relatively new digital marketing tactic. Tony Conrad, partner at True Ventures, and Frederique Dame, general partner at Google Ventures, led the funding round, with additional tranches provided by Trust Fund founder Sophia Amoruso, BAM Ventures, Mercury Fund, Charge Ventures, XRC Ventures and FAB Ventures. The $10.6 million raised includes a $2 million pre-seed round led by Seattle-based Flying Fish Ventures.

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“Consumer behavior has fundamentally shifted toward social-first discovery, where purchase decisions begin with social content, flow through community, and propel by personalized conversations,” Conrad told GeekWire. “Yet most brands are stuck using disconnected tools that weren’t built for this reality. Misbah and Farah have built the answer to this problem.”

“Every customer journey starts with a Reddit search, a TikTok scroll or an influencer recommendation,” Farah said in a LinkedIn video. “Ignore it and you’ll get left in the dust.” In addition to multiple tech companies, the Uraizees led product and engineering teams at Meta Platforms (NASDAQ:META) and are using this experience to develop new forms of customer engagement that focus on Gen Z and Gen Alpha, our youngest generations.

Nectar AI tools engage in “social listening,” tracking interactions from initial messaging to end purchases. According to the sisters, they watch online comments and videos from customers and influencers to get insights into the sentiment around brands and products. They specifically focus on the first 30 seconds after social platforms are opened because their research indicates that 25% of users perform searches within this time frame.

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The startup now has 12 employees at a Seattle engineering facility and New York City sales team. It’s focusing early efforts on a brand list that includes consumer goods, beauty, wellness, food and beverage marketing, software services and lifestyle products. It has already built a portfolio of customers that include GLAMNETIC, Solawave, Olipop and Jones Road Beauty.

However, competition in this AI marketing tech, also known as live shopping and search-as-a-service, is growing rapidly, led by Shanghai’s SuperOrdinary, which already carries an $800 million valuation. Algolia, Rebuy and Loup are also working on similar platforms.

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This article Sisters Power Nectar to $10.6M Funding, Unveil Game-Changing Marketing Tech originally appeared on Benzinga.com