Netail Closes Seed Funding to Advance Retail-Focused AI Development

Funding will enable expansion into new markets, enhance product offerings and improve customer experience

PITTSBURGH, Nov. 29, 2022 /PRNewswire/ -- Netail, a technology that enables retailers to auto-identify competitors across the internet and track their assortments, availability and optimize prices in real time, today announced the closing of $5M in seed funding. The round was co-led by Magarac Venture Partners (MVP), which provides early-stage venture capital to dynamic entrepreneurs and successful technology companies throughout the Midwest, and Dr. Andrew Ng's AI Fund. Other investors include HKSTP Ventures.

Consumer behavior has changed dramatically, and the majority of purchase decisions are now made online via search, marketplaces and social media. With retailers struggling to adapt, Netail's AI technology is designed to help them succeed by attracting, converting and retaining customers in these increasingly competitive digital arenas. Real-time data and decision-making are essential for retailers to better understand how products are positioned.

Founded in 2022 as part of Landing AI, Netail will now develop its breakthrough artificial intelligence (AI) technology in Pittsburgh, the home of Carnegie Mellon University and a technology hub, while retaining a presence in Palo Alto. Netail's latest round of funding will be used to enhance current product offerings and expand its team of retail, AI, and software engineers. In addition, Netail will leverage MVP's deep Midwest connections to win customers, recruit talent and attract new partners.

With customers already spanning three continents, Netail will also expand to the APAC region by opening an office in the Hong Kong Science & Technology Park. With AI Fund's deep domain and international expertise, Netail is poised to help retailers win the digital consumer around the world.

Netail CEO Mark Chrystal says, "As shopping has been transformed, retailers need to recognize that their competitive universe has expanded a thousand-fold and as a result, competitive pricing, features, availability, and convenience are central to a daily battle to win each and every customer. That's what Netail focuses on, helping retailers around the world stand out digitally against the competition."

Netail's funding comes at a time when U.S. retail e-commerce sales are expected to top $7.9 trillion in 2026, according to a forecast from Statista. Last year, retail sales in the United States alone were valued at $6.58 trillion. Today, e-commerce sales account for over 14 percent of all retail sales in the United States and are forecast to rise to nearly 22 percent by 2025.

"Under Mark Chrystal's leadership, Netail has developed a compelling product that is helping retailers adapt to the rapid shifts in consumer behavior we've seen in the past few years," says AI visionary Andrew Ng, CEO of Landing AI, and now Chairman of Netail, "To help win and retain the modern consumer, many of whom now make online and offline purchases using online search and marketplaces, Netail's analytics solution delivers deep customer and market visibility, and provides data to directly help retailers optimize key decisions in assortment, buying, merchandising and pricing."

"Netail is uniquely positioned to tackle today's retail landscape with the team's extensive background in AI and understanding consumer behavior," said Jay Katarincic, Partner at Magarac Venture Partners. "We are thrilled to partner with Mark and Andrew on this next stage of the company."

For more information, please visit https://netail.ai/.

Netail is an easy-to-use technology that helps retailers see their market from a customer perspective, and the thousands of alternative shopping options that are now available through online shopping and search. Netail scans the web and auto-identifies competitive products, providing real-time competitive intelligence for pricing and assortment decisions. Using business rules and AI-based optimization, Netail helps retailers attract and convert more customers, without sacrificing brand values. Without Netail, retailers are faced with large increments in digital marketing spending and declining ROI. The company is backed by Magarac Venture Partners, AI Fund and HKSTP Ventures. Learn more at https://netail.ai/.

Magarac Venture Partners (MVP) is a Pittsburgh-based venture capital firm with a focus on investing in early-stage companies in the emerging areas of Robotics, AI, Enterprise Software and HealthTech. Our team is composed of the most experienced early-stage investors in the Midwest with over 50 years of operational and investment experience. MVP believes that great ideas and leadership can come from anywhere and actively seeks out opportunities to provide diversified exposure to the fastest-growing tech ecosystem in the United States. Inclusion is the thread of what we do. MVP has consistently experienced outsized returns by having access to and investing in diverse and exceptional founders. For more information, please visit https://www.magarac.vc/.

SOURCE Netail