Ethosphere, voice AI for retail operations, has raised $2.5 million in pre-seed funding, led by Point72 Ventures, with participation from AI2 Incubator, Carya Ventures, Pack VC, Hike Ventures, and J4 Ventures. The funding supports Ethosphere in scaling up program pilots with major retail brands to address a critical need: enhancing support for in-store associates to deliver exceptional in-person, human interactions.
Ethosphere pioneers a novel approach that enables retailers to convert in-store interaction data directly into aggregated coaching insights for frontline associates, providing actionable guidance through the use of LLMs and voice AI technology. This human-centric focus ensures long-term utility, supporting the genuine human-to-human interactions which are the cornerstone of retail success. The company already touts global retail partnerships with leading brands.
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“AI is bringing change to every industry, and retail is no exception, but there is a significant gap in how the technology can be applied in a useful, human-focused manner”, said Evan Smith, cofounder and CEO of Ethosphere. “Ethosphere wants to bridge that gap by empowering retailers to invest in their people, recognizing that a well-supported and knowledgeable team is the key to building exceptional customer experiences. This human-centric approach not only enhances brick-and-mortar purchasing but also directly impacts a company’s bottom line by fostering loyalty and driving sales. We’re partnering with major brands to achieve this goal.”
Ethosphere was established in 2024, the brainchild of co-founders Evan Smith, CEO, and Ahad Rana, CTO, whose diverse yet complementary backgrounds laid the groundwork for its genesis. Smith, with a career rooted in the public sector, honed his skills in education and public affairs before transitioning to retail. He developed operational strategies and processes that fueled growth throughout senior leadership roles at Starbucks. Rana brings a profound understanding of technology. His extensive background in engineering, cultivated through pivotal roles at tech giants like AOL, Google, and AWS, equipped him with a strong understanding of emerging tech, AI, and user experience.
This combination, Smith’s strategic business acumen and human-centric approach forged in retail, coupled with Rana’s deep technical expertise and vision for user-friendly innovation, provided the perfect catalyst for the creation of Ethosphere. The company is headquartered in Seattle, joining its vibrant startup community and strong talent pool.
“In an increasingly busy landscape flooded with theoretical AI, Ethosphere stood out to us with a practical, powerful application that we believe has the potential to directly impact the sales and customer experience,” said Sri Chandrasekar, Managing Partner at of Point72 Ventures. “We see their focus on augmenting, not replacing, human interaction as a critical differentiator, making their solution a deeply compelling answer in the evolution of retail.”
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