Melius Raises $25 Million After Ex-Ramp Founders Scrap First AI Ad Product
Melius raised $25 million after ex-Ramp engineers scrapped their first product, then topped $1 million in annualized revenue within two months of launch.
Summary
Melius announced on October 6, 2026, that it raised $25 million, comprising a $20 million Series A led by CRV and a $5 million seed round led by General Catalyst. The New York startup claims it exceeded $1 million in annualized revenue within two months of emerging from stealth in July. Former Ramp engineers Joowon Kim, Young Kim and Arnav Ramu founded Melius more than a year ago as an AI performance marketing tool for managing and optimizing ad spending, but abandoned the idea and its entire codebase after more than six months of development.
Nearly a year after its original launch, Melius introduced plain-language creative agents that generate advertising campaigns, images and videos for agencies, marketers, brands and creative directors. Rivals include Krea, Flora AI and three-year-old Higgsfield, which was valued at $5.4 billion in August and has surpassed $700 million in annualized revenue, according to Joowon Kim. Kim, a social media influencer who made childhood vlogs, dreamed of YouTube fame and struggled to use his father’s Final Cut Pro, argues that demand can support multiple competitors.
Positives
- Melius raised $25 million, including a $20 million CRV-led Series A and a $5 million General Catalyst-led seed round.
- Melius claims annualized revenue exceeded $1 million within two months of its July stealth exit.
- Joowon Kim, Young Kim and Arnav Ramu rebuilt Melius around creative generation after recognizing the original product’s limitations.
- The platform lets agencies, marketers, brands and creative directors generate campaigns, images and videos using plain language.
- Higgsfield’s reported $700 million-plus annualized revenue supports Kim’s view that substantial demand exists for AI creative tools.
Risks & concerns
- Melius discarded its entire original codebase after spending more than six months developing an AI performance marketing product.
- The $1 million annualized revenue figure is Melius’ own claim, with limited supporting financial detail disclosed.
- Higgsfield already exceeds $700 million in annualized revenue and secured a $5.4 billion valuation in August.
- Melius faces a crowded market that includes the rapidly growing Higgsfield, Krea and Flora AI.
