A $25 million Series A led by Khosla Ventures is the centerpiece of a $35 million funding round for Coframe, an AI startup seeking to tailor websites to individual visitors. The investment reflects Vinod Khosla’s view that AI can replace pages that look much the same for everyone with interfaces adapted to each user.
Coframe develops and tests variations of website text, images and design, then tracks visitor responses to identify changes that may prompt more purchases, sign-ups or other desired actions. An online shoe retailer, for instance, could test different headlines, product images and layouts to see which versions lead to more sales.
Khosla, 71, said AI has made “extreme customization” possible. His firm has previously invested early in OpenAI, DoorDash and Instacart. Hanabi Capital joined Khosla Ventures in leading Coframe’s Series A, while executives at Anthropic, OpenAI and Google DeepMind also participated. Forbes reported earlier this year that Khosla’s net worth is around $10 billion.
Coframe said its AI-powered platform has helped customers generate more than $300 million in additional revenue, with conversion rates improving by more than 20% on average. Its customers include Dropbox, BCG, Block, Backcountry and Sur La Table. The company said it built and launched a Dropbox experiment in 30 minutes, a task that previously would have taken four weeks of engineering, design and quality-assurance work.
For an unnamed Fortune 500 customer, Coframe said it launched dozens of variations and raised conversions by 70% within 30 days of signing the contract. Khosla described the approach as a step beyond traditional A/B testing. “The alternative is to write code for every page that’s presented, but that’s too expensive and way too slow,” he told Business Insider.
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