AI startup Mega raises USD $11.5m to rival ad agencies

Mega, a Brooklyn-based AI startup, has raised USD $11.5 million in Series A funding as it expands a software platform that automates parts of marketing and growth work for small and mid-sized businesses.

Goodwater Capital led the round, with participation from Andreessen Horowitz, Atreides, SignalFire and Kearny Jackson. WNBA players Diana Taurasi, Breanna Stewart, Kelsey Plum and Nneka Ogwumike also joined the round.

Mega markets its product as an alternative to hiring a marketing agency: an automated service built around multiple AI agents. The company says the agents handle tasks across search engine optimisation, paid advertising, websites and what it calls GEO.

Agency alternative

The pitch targets firms that sit between early-stage self-service tools and large-company marketing teams. Mega focuses on businesses with annual revenue of about USD $500,000 to USD $20 million.

Many smaller firms outsource marketing because they lack specialist staff and struggle with multiple tools and fragmented suppliers. Agencies can consume a large share of the budget and vary widely in delivery. Some owners also say they have limited visibility into which work drives results.

Mega positions its service as software that executes campaigns rather than a tool the customer must operate. It says the system plans campaigns, runs them and updates performance reports, with marketing activity continuing even if customers never log in.

Mega describes its operations as a hybrid model: about 55% of work is fully automated, 35% is mostly automated with staff oversight, and 10% is handled by humans end to end.

The company also says campaign data feeds back into the system across its customer base, improving creative generation, audience targeting, bidding strategies and optimisation logic.

Origins and growth

Mega traces its origins to an earlier venture by the founding team. During the Covid period, the founders were working on a video game business; after ChatGPT launched, they began building internal AI tools for their own marketing.

Those experiments, the company says, drove big gains: organic traffic increased 100-fold and paid customer acquisition costs fell by 80%.

Co-founder Lucas Pellan then shared the tools with other founders, according to the company. Interest spread, and the team shifted focus to build a product for other businesses.

"We realized early that business owners do not want another AI chat tool that requires hours of prompting," Pellan said. "They want customers. So we built a system that actually does the work. We use AI agents to execute end to end, continuously improving performance so SMBs get predictable growth without managing agencies or juggling tools."

Mega says it went from zero to USD $10 million in revenue in 10 months. It says its customers include home services companies, law firms, healthcare businesses, eCommerce brands and software companies.

Customer claims

Mega provided several examples of outcomes it associates with its platform: a Texas medical spa that grew search traffic by 174 times; a personal injury law firm that increased search visibility by 243 times and began ranking in the top three for key terms; and a direct-to-consumer health brand that generated USD $120,000 in direct website revenue and exceeded its performance on Amazon without raising ad spend.

Mega also says it helps customers grow 20% faster on average.

One customer quoted by the company cited lead generation and time savings. "Since working with Mega we are finally getting a predictable lead flow. We are also able to divert our time away from Facebook marketing to other important projects because Mega manages everything," said Darin Chase.

Goodwater framed the investment as part of a broader shift in how smaller firms buy marketing services.

"Mega represents a fundamental shift in how SMBs should think about marketing, from paying for effort to paying for measurable, repeatable growth. We're excited to back Lucas and team as they build an AI-native enterprise-grade growth engine that any business can turn on," said Vivek Subramanian, Partner and Chief Product Officer at Goodwater Capital.

Next product areas

Mega plans to broaden its scope beyond SEO, ads and websites, citing email, outbound, organic social, lead qualification, sales operations and reporting as future areas of focus.

It also plans to take on more functions closer to revenue operations, as more small firms seek predictable acquisition while avoiding the cost and complexity of building a full in-house team.

"Looking ahead, Mega plans to expand beyond SEO, ads, and websites into managing the entire revenue generation engine for SMBs, including email, outbound, organic social, lead qualification, sales operations, and reporting," Pellan said.