Qloo Secures $25M Funding to Anticipate Your Next Favorite Movies, TV Shows, and More

The Rise of GenAI and Its Impact on Understanding Consumer Behavior

Today’s leading AI innovation — GenAI — serves as a remarkable labor-saving tool, quickly generating images, emails, songs, and more. Yet, one of AI's most valuable long-term applications may lie in its ability to discern the unconventional correlations that often elude human observation. For instance, individuals who enjoy horror films might be more adventurous with exotic cuisines, while sitcom fans could have a strong interest in true crime podcasts.

Qloo: Harnessing AI to Decode Cultural Tastes

Qloo, a New York-based startup, is dedicated to utilizing AI to explore these intricate patterns of taste and culture. Founded in 2012 by Alex Elias and Jay Alger, Qloo aims to identify consumer behaviors and trends across a variety of sectors, including entertainment, fashion, travel, sports, and food.

Elias, a graduate of NYU Law School, founded Qloo after recognizing a gap in the market he refers to as “taste knowledge.” He explains, “As a passionate advocate for culture — playing the tenor saxophone and piano with a strong appreciation for midcentury cinema — I noticed the fragmented landscape of taste knowledge. While companies like Spotify, Expedia, and Netflix thrive within their sectors, creating isolated data silos, there was a clear need for a unified system that comprehends and predicts diverse personal preferences across multiple domains without depending on identity-based data.”

Thus, he partnered with Alger, who previously led the digital marketing agency Deepend, to bring Qloo to life.

Innovative Insights Across Cultural Domains

Currently, Qloo provides companies with AI-generated correlation data spanning various cultural and entertainment sectors, including film, travel, nightlife, and literature. The platform's insights into a user’s preferences in one area can be used to recommend products or experiences in another—such as using TV show favorites to inform game purchases.

“Qloo operates a cutting-edge AI-powered insights engine that synthesizes behavioral data from consumers worldwide,” Elias shares. “Our proprietary AI models can uncover trillions of connections among over 575 million entities globally. This profound understanding of consumer behavior allows for contextualized personalization and deep insights into the complex relationships behind individual tastes.”

Despite the extensive personal data Qloo analyzes, Elias reassures that the company does not rely on personally identifiable information, adhering to privacy regulations such as GDPR and the California Consumer Privacy Act.

“Qloo maintains a rigorous Ethics Policy emphasizing ethical, transparent, and responsible AI development and data privacy,” he emphasizes. “We uphold the highest standards in data security and do not utilize any personally identifiable information or copyrighted content in our modeling processes.”

Trusted By Major Brands

Leading brands are embracing Qloo to enhance their product experiences. Starbucks utilizes Qloo to curate in-store music playlists that resonate with neighborhood vibes. Hershey’s employs Qloo to tailor the contents of assorted candy bags, while Michelin leverages Qloo's technology for recommendations in its Michelin Guide App. Even Netflix uses Qloo to enhance its merchandising efforts by pinpointing actors appealing to specific demographics.

With clients like PepsiCo, Samsung, The New York Mets, BuzzFeed, and Ticketmaster — totaling around 60 customers — Qloo is edging closer to profitability. The company generates revenue by charging monthly subscription fees for API access, with contracts starting in the “five-figure” range.

Funding and Future Expansion Plans

Recently, Qloo secured $25 million in a Series C funding round led by AI Ventures, with participation from AXA Venture Partners, Eldridge, and Moderne Ventures, bringing its total funding to $60 million. With these resources, Qloo aims to expand its team from 50 to over 100 by year-end while also enhancing its offerings.

The startup plans to roll out a self-service research tool tailored for marketers and small to medium-sized businesses, alongside a “multi-person recommendation AI.” This innovative feature will match profiles from Qloo’s database based on individual preferences, potentially transforming dating app experiences.

Elias notes, “The momentum from advancements in privacy and AI far surpasses the challenges posed by any tech slowdown. Qloo has witnessed substantial contract expansions from existing clients, eager to explore new data domains and applications like generative itinerary planning and dynamic personalization. Additionally, we see growing interest from emerging markets, including real estate, and accelerated sales cycles despite increasing compliance demands.”

With its new capital infusion, Qloo is also open to strategic mergers and acquisitions, having successfully acquired the entertainment recommendation engine TasteDive in 2019, with plans for similar future acquisitions.