Coframe, an AI startup developing websites and digital advertising experiences that automatically improve their performance, has raised $35 million in total funding. The latest investment includes a $25 million Series A round co-led by Khosla Ventures and Hanabi Capital, with participation from leaders at OpenAI, Anthropic and Google DeepMind.
Founded in 2023, Coframe is building what its founder and CEO, Josh Payne, describes as the “living internet”. Its platform helps businesses create, test and improve website pages and advertisements automatically, rather than showing every visitor the same static content.
The technology connects to a company’s existing website or advertising campaigns and generates different versions of content. It then tests these variations and uses the results to personalise experiences and improve performance in real time.
The company plans to expand beyond websites and advertising into applications, email and other digital experiences.
“We’re building an internet that improves itself,” said Josh Payne, founder and CEO of Coframe. “A digital experience should understand what it is trying to accomplish, adapt to the person interacting with it and learn from every result. Instead of waiting months for the next redesign, companies should have websites and applications that get better every day.”
“For decades, the web has been frozen in place, showing every visitor essentially the same page,” said Vinod Khosla, founder of Khosla Ventures. “Coframe is building the living internet, where two people can visit the same website and have completely different experiences, personalized to who they are and what they need. These interfaces continuously learn and improve themselves. This is a huge leap beyond traditional A/B testing and the next iteration of the internet.”
“The way most companies build and manage their user interfaces today is wrong, and in a year or two it will be obvious why that is,” said Pavlo Razumovskyi, co-founder and VP of Engineering of Coframe. “User interfaces should improve themselves, and be personalized to every user.”
AI Agents That Design and Improve Websites
Coframe combines a specialised AI model trained on user interactions with a team of AI agents. These agents perform different roles, including strategy, design, software engineering, quality testing and data analysis.
Together, they can develop, test and optimise hundreds of website and advertising variations within minutes.
The platform is designed to learn from how visitors interact with digital experiences. Each experiment adds information that can help improve future recommendations and content.
More Than $300 Million in Additional Customer Revenue
Coframe says its platform has generated more than $300 million in incremental revenue for customers.
The company has reported conversion rate improvements of 158% for Dropbox, 410% for Replit and 60% for Cash App. Across its customer base, average conversion rates have increased by more than 20%.
One Fortune 500 customer reportedly achieved a 70% improvement in conversions within 30 days of signing with Coframe.
The platform has also helped businesses reduce the time needed to launch website experiments. At Dropbox, a test that previously required four weeks of engineering, design and quality assurance work was reportedly built and deployed in just 30 minutes.
Across thousands of variations, Coframe says its platform has achieved a 39% experiment win rate, more than three times the industry average. It has also increased customers’ testing speed by at least 10 times.
Other customers include BCG, Block, Backcountry and Sur La Table.
Partnership with OpenAI on AI-Powered Advertising
Coframe is also preparing for a future in which AI agents increasingly search, compare and purchase products on behalf of consumers.
The company is already working with OpenAI on its ChatGPT advertising offering. The collaboration allows businesses to optimise advertisements and their corresponding landing pages as one connected experience.
This builds on an earlier partnership between the companies involving the development of a specialised AI model for generating brand-specific code and creative assets.
Coframe is also incorporating practices designed for AI agents into the websites it develops, helping businesses prepare for changes in how people and AI systems interact with online services.
Founder Background and Company Growth
Coframe was founded by Josh Payne in 2023. He studied mathematics and computer science at Stanford University, focusing on artificial intelligence.
Before Coframe, Payne co-founded Autograph with Tom Brady, a digital collectibles company that reached a valuation of more than $2 billion. He also developed GPT-Migrate, an autonomous coding agent that became a top-ranked project on GitHub.
Coframe has also acquired companies founded by two former Optimizely executives, Bo Mohazzabi and Steven Ebin. Mohazzabi now serves as the company’s Vice President of Go-to-Market, while Ebin is General Manager of Revenue Optimization.
With $35 million in total funding, Coframe plans to expand its AI platform and develop digital experiences that can continuously learn from user behaviour. The company aims to help businesses improve online performance while reducing the time and resources required for traditional website development and testing.
