🦄 Unicorner Startup of the Week:

Arcade AI

✍️ Notes from the Editors

Calling San Francisco-based startup founders! 🌉

P.S. If you’re a founder looking for cap table software (or switching from your current provider)—we should talk. Swing by our event, or reply to this email for more info!

- Arek and Ethan 🦄

AI-Powered Product Creation Marketplace

Arcade is an AI-powered platform and marketplace that enables customers to design and create custom products, such as jewelry. The platform simplifies the product creation process, allowing for personalized and intricate designs. Once a customer decides on a design (Arcade calls them “dreamers”), they’re connected to a “maker” who will craft the product from the designs. After a quality review by Arcade and approval from the dreamer, the finished product is shipped and can be listed on Arcade’s marketplace for other customers.

🔗 Check it out: arcade.ai

💰 Business Model

Arcade operates on a B2C model, offering its AI-driven design platform directly to consumers. Dreamers can create custom designs, with pricing varying based on the complexity of the product. For instance, designing intricate custom jewelry can cost $1,000 or more, but simpler designs can cost around $100.

📈 Traction and Fundraising

📖 Founder Story

💼 Opportunities

🔮 Our Analysis

A prerequisite for any successful business is to understand your customer. For a craft seller, such as someone who operates a store on Etsy, this means designing and creating a product that people want to purchase. Customers looking to purchase these types of products might spend a lot of time browsing seller listings, trying to find the perfect product. Other times, they’re looking for inspiration.

Arcade is a unique solution that solves both of these problems. From the perspective of a prospective customer, or dreamer, all one has to do is provide a text description to Arcade about the product they are looking for, and its AI will design the product and source a seller who can make it a reality. For the seller, or maker, they are guaranteed to create a product that will sell.

To take the innovation further, should a dreamer choose to publish their design with the rest of the community, they can earn a commission on future sales. This encourages customers to contribute to a budding marketplace of products.

At the moment, Arcade AI is offering rugs and jewelry. However, there is much room for expansion. Just as Amazon began as a bookstore, Arcade has the seeds sown to become the go-to market for unique products.

📚 Further reading

Written by the editors

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