Analysis

Mega Raises $11.5M Series A to Build AI Growth Engine for SMBs

Mega pivoted from a gaming startup to an AI marketing engine after a ChatGPT-powered agent caused its traffic to skyrocket — now it has $11.5M to sell that system to SMBs.

Sam Ortega3 min read
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Mega Raises $11.5M Series A to Build AI Growth Engine for SMBs
Source: www.financialcontent.com

Mega, the Brooklyn-based startup built on an accidental discovery, closed an $11.5 million Series A on March 9 to scale an AI-powered platform that it says can fully replace traditional marketing agencies for small and mid-sized businesses.

The round was led by Goodwater Capital, a consumer technology-focused venture firm managing over $3.5 billion in committed capital with 13 portfolio companies that have reached billion-dollar valuations. Participating investors included Andreessen Horowitz, Atreides Management, SignalFire, Kearny Jackson, and several unnamed athlete investors.

Mega co-founders Robbie Schneidman and Lucas Pellan stumbled into the idea while building a competitive gaming platform. During the pandemic, they began experimenting with AI tools to drive their own traffic and customer acquisition. The internal tools quickly outperformed everything they had been doing before. When ChatGPT launched, Pellan said the team built an agent on the model specifically to improve Mega's SEO and ad content, and traffic skyrocketed. The video game business eventually wound down entirely and Mega pivoted to selling that capability as a product.

The demand signal came fast. When Pellan mentioned the agent to other founders, interest kept piling up. "Hearing a few people express interest was nice," Pellan said, "but then you hear it 30 to 40 times, and you go, hey, maybe we're really on to something here."

The platform targets businesses generating between $500,000 and $20 million in annual revenue, a segment that typically spends on outside agencies but lacks any dedicated internal marketing function. Verticals include home services, law firms, healthcare businesses, ecommerce brands, and software companies. These are businesses that rely on agencies to manage Google ads, search rankings, and social campaigns, processes that are often manual, inconsistent, and reviewed periodically rather than continuously optimized.

AI-generated illustration
AI-generated illustration

Mega's architecture is built around a network of specialized AI agents divided into three functional categories: SEO agents that write blog posts and perform keyword research, ad agents that produce creative briefs and design ad creative, and website agents that handle design and navigation improvements. A coordination layer connects all three so that information flowing through one part of the marketing stack informs the others. The initial version of the product ran solely on ChatGPT; the current system draws on multiple model providers depending on the specific use case.

The promise to customers is near-total automation. "The system plans, executes, optimizes, and reports continuously," the company wrote in its launch announcement. "If a customer signs up and never logs in, their marketing still runs and improves."

Pellan acknowledged there is a deliberate trade-off embedded in that design. "Most AI products are tools that people have to 'wrestle with,'" he said. Mega's approach removes that friction by fully automating strategy development, execution, and reporting, but he noted that by definition the process also removes a bit of user autonomy.

Mega will use the Series A funding to expand its AI-driven marketing platform and scale its automated growth infrastructure for SMBs. The pitch to that market is blunt: "Most small to medium business owners have the same relationship with their marketing agency: they pay for effort and hope it turns into outcomes. It rarely feels like a fair trade.

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