What Happened: Arcads Secures $16M in Seed Funding

Arcads.ai, a French startup that helps brands generate AI-powered marketing videos — including UGC-style ads, demos, fashion try-ons, and unboxing content — has raised $16 million in a seed funding round led by Eurazeo. Additional participation came from Alpha Intelligence Capital and the Sequoia Scout program.

This funding comes less than two years after the company was founded in 2024 by Dylan Fournier and Romain Torres, reflecting rapid growth and strong investor confidence in the future of AI-assisted creative production.

Why This Funding Matters

1. Boosting AI Video Generation Capabilities

The new capital will be used to improve the platform’s core AI video generation technology, making Arcads’ outputs even more realistic and versatile — a key advantage as more brands shift to AI UGC video ads.

2. Expanding in the United States

Arcads plans to strengthen its presence in the U.S. market by opening a San Francisco office and investing in localized growth efforts. More than half of its existing users are already based in the United States.

3. Global Growth & International Reach

Beyond the U.S., Arcads aims to expand internationally and support a broader audience of marketers, agencies, and eCommerce brands needing scalable video production tools.

What Arcads Does

Arcads.ai enables marketing teams to create social-ready video content in minutes. The platform uses AI to automate video generation, supporting formats like:

• UGC-style AI actors for authentic ad creatives
• Product demos and detail shots
• Fashion try-ons and lifestyle scenes
• Unboxing and tutorial content
• Available in 35+ languages for global campaigns

This helps brands scale their creative output without hiring expensive production crews, shooting footage, or spending weeks editing.

Founders & Company Background

Arcads.ai was founded in 2024 by Dylan Fournier and Romain Torres after the founders experienced firsthand the challenges of producing enough high-quality video ads for competitive product launches. Their solution: an AI platform that empowers marketers to test, iterate, and generate dozens of video creatives rapidly.

The company has grown fast, now serving over 6,000 clients worldwide and producing tens of thousands of video assets per month — all with a small but highly productive team.

What Investors Are Saying

Eurazeo, the lead investor, is a major European private equity group with billions in assets and global reach. Their participation underscores significant confidence in Arcads.ai’s vision and the broader demand for automated AI creative tools in digital marketing.

What This Means for the Industry

This funding round highlights several key trends:

🔹 Growing Demand for AI-Assisted Creative Tools

Brands of all sizes are seeking faster, cheaper ways to produce user-generated-content–style videos, especially for platforms like Facebook, Instagram, and TikTok.

🔹 Scalability in Paid Ads

As paid social performance becomes tougher and more competitive, tools that generate high-volume, high-quality ad creatives are increasingly essential for DTC and performance marketers.

🔹 Expansion of AI in Marketing Workflows

AI isn’t just assisting with text and analytics anymore — it’s now driving visual content creation at scale, which was traditionally resource-intensive and slow.

Looking Ahead

With this seed funding, Arcads.ai is well-positioned to expand its product capabilities and compete in a rapidly evolving space of AI-generated marketing content. As AI creative platforms continue to innovate, marketers should expect faster production cycles, more personalization options, and tighter integration between AI tools and ad platforms.

Sources

• Arcads.ai raises $16M seed funding led by Eurazeo to expand video generation & U.S. presence.
• Arcads.ai seed investment details and company overview.
• Additional funding coverage on marketing and video automation impact.