Krateo.AI is an AI-based platform that turns anonymous visitors into prospects by building unique digital footprints around engagement so AI can deliver insights and actionable recommendations for optimal consumer engagement across all sales channels. Pulse 2.0 interviewed Krateo.AI CEO Clay Sharman to learn more about the company.
Clay Sharman’s Background
What is Clay Sharman’s background? Sharman said:
“I’ve spent nearly two decades developing technology for capture and proposal development teams, including quite a bit of work for the federal sector. Prior to Krateo.AI, I built artificial intelligence and machine learning solutions for the Department of Defense, as well as other national security agencies. I also engineered tools for the private sector, focusing on bridging the gaps between capabilities and customer needs. At heart, I’m a passionate creator with a deep fascination for risk assessment and gap analysis when it comes to software solutions. Additionally, I am an author and a filmmaker.”
Formation Of KRATEO
How did the idea for the company come together? Sharman shared:
“The idea that led to Krateo.AI came while I was working on an enterprise intelligence platform for national security. The platform’s focus was threat detection to proactively identify bad actors. As I worked to build solutions that help law enforcement turn an anonymous alias into a person, it occurred to me that there could be commercial applications for this type of tech. Krateo.AI was born from that experience.”
Favorite Memory
What has been Sharman’s favorite memory working for the company so far? Sharman reflected:
“Lots of great memories so far! It’s a tossup. One core memory is the day we actually saw the product “live” for the first time. Seeing our vision take shape on a screen that you can interact with was pretty awesome. The other that comes to mind is, in this post-COVID world, remote work has meant a reduction in personal interaction, but we had a two-day work summit in 2023 where we all got together in person for strategy sessions and a big team dinner. That might actually be my favorite memory so far.”
Core Products
What are the company’s core products and features? Sharman explained:
“The core product is our AI-driven marketing technology that transforms anonymous website visitors into valuable prospects by creating unique digital profiles based on their engagement. Then, by leveraging advanced AI and machine learning techniques, Krateo.AI optimizes marketing campaigns, ensuring that each interaction becomes more effective than the last. This continuous improvement cycle allows businesses to stay ahead of market trends and consumer behaviors, making their marketing efforts more agile and responsive.”
Challenges Faced
What challenges have Sharman and the team faced in building the company? Sharman acknowledged:
“The main challenge for our sector is a lack of understanding of what first-party data is and how data privacy is a concern for customers. Brands’ fear is that having too much information on web visitors is somehow a legal problem. It’s not. But that doesn’t mean brands don’t have a responsibility to be ethical in how they engage with collected data. They absolutely do. The only way to overcome this is through thoughtful education, which means we have to stay abreast of emerging privacy regulations and ensure we always comply.”
Evolution Of KRATEO’s Technology
How has the company’s technology evolved since launching? Sharman noted:
“At the MVP stage, we focused heavily on identifying anonymous users with an accurate email. This was the tip of the iceberg for us though, and didn’t require significant technology. It was basically ‘table stakes’ for getting funded and acquiring early test customers. In the last year, we have upped the ante on our platform by leaning heavily into AI/ML to drive real recommendations for engagement improvements. The use of logic, modeling and AI in concert with high data volumes have turned us from a simple identity resolution company into a highly advanced AI prospect engagement platform, complete with our own AI copilot, named Hermes.”
Significant Milestones
What have been some of the company’s most significant milestones? Sharman cited:
“The investment to build the MVP was a pivotal milestone, which set the foundation for fast growth. Another crucial moment was when we brought on our Head of Technology, Doug Smith, a veteran data expert with nearly 20 years of experience with IBM. Onboarding our first test customer marked a critical phase in validating our product, and landing our first paying customer, The Flyover, was a major achievement, as it is for any startup.”
“Recently, a particularly proud moment was being recognized by The Lead as one of their “Leading 100” most innovative technology startups for 2024. Given our relatively young presence in the industry, it was a significant honor for us.”
Customer Success Stories
When asking Sharman about customer success stories, he highlighted:
“We have several great case studies underway, with our best one yielding outstanding results in terms of campaign engagement, where we are consistently hitting 25-30% email open rates versus the industry standard of 15-20%. Click-through rates are even more impressive, as we’re seeing 100% increases in personalized campaigns with conversion rates growing up to 300% within 90 days after extensive focus on hyper-targeted audiences, including audiences that our customers were unable to target previously.”
Funding
When asking Sharman about the company’s funding details, he revealed:
“We’ve raised about $1.25 million to date – a relatively modest amount considering what we’ve achieved compared to others in the space. Our revenue exceeded six figures this year, positioning us well for achieving our 2025 growth and market awareness goals.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Sharman assessed:
“We see a TAM of $2 billion as our target market. And, the total ecommerce market is projected to exceed $1 trillion this year, so we have room to grow.”
Differentiation From The Competition
What differentiates the company from its competition? Sharman affirmed:
“Krateo.AI stands out from the competition thanks to our ability to track a prospect onsite as well as when they return and then, build audiences of ‘like’ behavior. From there, we can forecast how those audiences are likely to act as well as improve those forecasts over time. These are big differentiators. Our AI copilot, Hermes, and its ability to provide data-based insights and recommendations for users is another clear differentiating factor.”
Future Company Goals
What are some of the company’s future company goals? Sharman concluded:
“We’d like to make Krateo.AI the leading voice for prospect engagement when it comes to monetizing anonymous web visitors. We also want to reshape how digital marketing is done by using audience data responsibly and ethically to deliver a great shopping experience to every online visitor.”
