San Francisco-based startup Arcade has secured $25 million in Series A funding, bringing its total raised to $42 million. The investment round was led by Laura Chau of Canaan Partners and Kirsten Green of Forerunner Ventures, with participation from April Underwood of Adverb Ventures and Sol Bier of Factorial Funds. Existing backers, including Reid Hoffman, Brit Morin (Offline Ventures), Ashton Kutcher (Sound Ventures), Alexa von Tobel (Inspired Capital), and Jonathan Keidan (Torch Capital), also reinvested. Additionally, new angel investors such as Sara Beykpour, Kayvon Beykpour, Anna Veronika Dorogush, Eugenia Kuyda, and Marissa Mayer joined the round.
AI Meets Custom Manufacturing
Arcade, co-founded by Mariam Naficy alongside her incubator Heretic Ventures, merges generative AI with independent makers and brands to create personalised, on-demand physical products. The platform enables consumers to generate custom designs and communicate seamlessly with manufacturers using images, bridging language and geographic barriers.
Since its beta launch in September 2024, Arcade has experienced rapid user adoption. Within just three months, the platform facilitated the creation of 650,000 unique jewellery designs. Expanding beyond jewellery, Arcade has now launched a home goods category, broadening its AI-driven product offerings.
A New Era for Custom Shopping?
Arcade’s model challenges traditional manufacturing by offering personalised, immediately priced products in single-unit quantities. This funding round is expected to fuel further innovation, enhancing AI capabilities and expanding product categories. As consumer interest in AI-generated products grows, Arcade’s success signals a shift towards a more customisable and accessible shopping experience.
I am passionate about crafting stories, vibing to good music (and making some too), debating Nigeria’s political future like it’s the World Cup, and finding the perfect quiet spot to work and unwind.
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