Coframe Raises $35 Million in Total Funding to Build AI-Powered Self-Optimizing Websites

AI startup Coframe has raised $35 million in total funding, including a $25 million Series A round co-led by Khosla Ventures and Hanabi Capital. The financing also includes participation from executives and researchers associated with OpenAI, Anthropic and Google DeepMind, alongside investors Nat Friedman and Antler.

Founded in 2023 by CEO Josh Payne, Coframe is developing AI technology that automatically creates, tests and optimizes websites and other digital experiences. Its broader vision is what the company calls the "living internet", where digital experiences continuously adapt to individual users rather than remaining static between manual redesigns.

The company plans to use AI agents to automate the process of generating content variations, testing their performance and improving subsequent experiences based on user interactions.

Building Websites That Improve Themselves

Traditional website optimization often involves manually designing new page versions, running A/B tests and analysing results before implementing changes.

Coframe aims to automate much of this workflow.

Its platform uses AI agents to generate and deploy variations of digital content, measure how visitors respond and refine future versions. The system is designed to handle several stages of the process, including strategy, design, software engineering, quality assurance and data analysis.

This approach is intended to help businesses run more experiments without proportionally increasing the number of engineers, designers and marketing specialists involved.

Coframe's platform combines a proprietary transformer model trained on user behaviour with specialised AI agents that coordinate different parts of digital experience optimization.

According to the company, its models analyse user interactions across hundreds of millions of sessions each month to identify patterns and inform subsequent experiments.

$300 Million in Reported Incremental Customer Revenue

Coframe says its technology has generated more than $300 million in incremental revenue for customers, including Dropbox, Replit and Cash App.

The company has reported the following conversion improvements:

• Dropbox: 158% improvement.

• Replit: 410% improvement.

• Cash App: 60% improvement.

Across its broader customer base, Coframe reports average conversion rate improvements of more than 20%.

The company also claims a 39% experiment win rate across thousands of variations, which it describes as more than three times the industry average.

Its platform reportedly allows customers to increase testing frequency by tenfold or more.

These figures are company-reported and have not been independently verified in the funding announcement.

Automating Experimentation for Large Businesses

Coframe says its platform can significantly reduce the time required to develop and deploy website experiments.

At Dropbox, an experiment that previously required four weeks of engineering, design and quality assurance work was reportedly developed and deployed in approximately 30 minutes.

For another Fortune 500 customer, the company says its platform launched dozens of variations and achieved a 70% improvement in conversion rates within 30 days of signing a contract.

Beyond Dropbox, Replit and Cash App, other customers include Boston Consulting Group, Block, Backcountry and Sur La Table.

The company is positioning its technology as an alternative to traditional conversion rate optimization tools, which typically depend on manually created experiments and periodic website changes.

From Website Optimization to the Living Internet

Coframe's longer-term vision extends beyond conventional website testing.

The company believes that as autonomous AI agents increasingly research products, compare services and complete purchases on behalf of consumers, digital experiences will need to adapt to both human visitors and AI systems.

It is therefore developing technology intended to make websites more accessible to AI agents and support a growing volume of automated internet interactions.

Coframe is also collaborating with OpenAI on its ChatGPT advertising offering, aiming to help advertisers optimize advertisements and their associated landing pages as a connected experience.

The collaboration builds on earlier work between the companies involving a specialised AI model for generating brand-consistent software code and creative assets.

The company's roadmap also includes expanding its optimization technology into applications, email and other digital interfaces.

Founder's Previous Startup Experience

Coframe was founded by Josh Payne, who previously co-founded Autograph, a digital collectibles company launched with Tom Brady that reached a reported valuation of more than $2 billion.

Payne also created GPT-Migrate, an early autonomous coding tool.

Coframe has expanded its leadership capabilities through acquisitions of companies founded by former Optimizely executives Bo Mohazzabi and Steven Ebin. Mohazzabi now serves as vice president of go-to-market, while Ebin is general manager of revenue optimization.

Funding and Competitive Positioning

The $25 million Series A was co-led by Khosla Ventures and Hanabi Capital. The wider financing includes investors and participants associated with major AI research and technology companies, as well as Nat Friedman and Antler.

Coframe has not disclosed its valuation following the Series A or specified how the new capital will be allocated.

The company is targeting a market where businesses are increasingly adopting AI to automate marketing, software development and customer engagement.

Its differentiation lies in bringing content generation, autonomous experimentation, behavioural analysis and conversion optimization into a single platform.

What Comes Next for Coframe?

With $35 million in total funding, Coframe aims to expand its AI-powered digital experience platform and move beyond traditional website optimization.

Its longer-term ambition is to build digital interfaces that continuously adapt to user behaviour, generate new experiences and improve performance through ongoing experimentation.

The next challenge will be demonstrating that these automated improvements can remain reliable, brand-consistent and commercially valuable as the platform expands across websites, advertising, applications and other digital channels.