arcade Launches 'Try Before You Buy' Demo with $2.5M Funding
A New Approach to Product Demonstrations: Introducing Arcade
Many companies require users to complete forms and create accounts before even experiencing their applications or tools. Often, this process leads to disappointment when the product doesn’t meet expectations.
Arcade is a newly launched interactive demo platform aiming to revolutionize this experience. The company facilitates the creation of engaging demonstration videos, termed “arcades,” which illustrate the functionality of various tools.
Seed Funding and Founding Team
The company was founded by Caroline Clark and Rich Manalang, former colleagues at Atlassian. They have secured $2.5 million in seed funding, spearheaded by Upfront Ventures, with additional investment from Sequoia, Bond, and a collective of angel investors.
These angel investors include prominent figures such as Mathilde Collin, Laura Behrens Wu, Jaren Glover, Eric Wittman, Jonathan Widawski, and Lenny Rachitsky.
Early Traction and Beta Launch
Arcade was initially launched in private beta last July, following its establishment in early 2021. Currently, approximately 300 users are on the waitlist.
To date, 90 companies have utilized the free version of the platform, resulting in the creation of over 125 interactive arcades.
How Arcade Works
Arcade tracks user interactions within the demo, allowing for customized experiences. Companies can embed these interactive snippets directly into websites, blogs, and social media platforms.
This enables potential users to explore the product's capabilities before committing to a trial or subscription.
The Shift Towards Product-Led Growth
Caroline Clark, leveraging her marketing expertise, explained that during their time at Atlassian – a pioneer in product-led growth – they observed customers frequently discovering products outside of the official website.
However, a suitable solution for enhancing these discovery experiences was lacking.
“Our goal was to establish a system where product discovery is both effortless and enjoyable, clearly demonstrating the value proposition,” Clark stated.
Changing Customer Expectations
Customer expectations regarding purchased products and tools have evolved. In recent years, there’s been a move away from blindly signing up for services.
Traditionally, sales processes often involved a degree of opacity, with information revealed only after obtaining user data. This created a sense of uncertainty.
Addressing a Key Pain Point
Arcade addresses a significant challenge faced by companies like Clockwork, which serves financial professionals. Previously, Clockwork requested potential users to connect their invoices to demonstrate the platform’s functionality – a substantial request.
By employing Arcade, Clockwork can now provide a preview of its platform without requiring immediate data upload. Carta is also utilizing arcades to enhance its social media presence.
Future Plans and Expansion
The recent funding will be allocated towards product development, website improvements, and the expansion of the engineering and product design teams.
Currently supporting 90 companies, Arcade aims to double this number by the end of the year.
The company’s future focus encompasses marketing initiatives, enhanced functionality, and broader distribution channels.
“We are dedicated to ensuring users understand what they are signing up for before sharing their data,” Clark emphasized. “Further investment will be directed towards product updates, integrations, and empowering customers to create even more impactful tools.”
Investor Perspective
Aditi Maliwal, a partner at Upfront Ventures, expressed her enthusiasm for collaborating with Clark, whom she has known for several years.
“I am thrilled to embark on a long-term partnership – potentially spanning five to ten years or more – with her,” Maliwal shared via email.
“Caroline is a founder driven by strong values and intellectual honesty. I prioritize investing in exceptional founders who demonstrate a strong alignment between their skills and the market opportunity, and who are committed to a genuine vision.
The PLG market is experiencing rapid growth, and our interactions are increasingly virtual. The traditional approach of scheduling a call with a sales representative to evaluate a product feels disruptive. Users should have the ability to easily view a demonstration of their own data within a vendor’s environment. Arcade empowers creators to develop compelling experiences and take pride in their work.”
Focus on Design and Simplicity
Maliwal believes the founders prioritized identifying design partners who could become long-term customers from the outset.
Their experience at Atlassian underscored the power of showcasing products to prospects and customers.
“They quickly recognized the core issue and understood that differentiation hinges on exceptional design and simplicity for both marketers and end-users,” Maliwal added. “Furthermore, Caroline and Rich are both committed to building a substantial company, starting with a design-focused product and a highly skilled team.”
Editor’s note, Jan. 11, 10:30 a.m. PT: Company amended its list of investors to include Bond.