Crossing Minds Secures Funding for Privacy-Preserving Recommendations

The Evolution of Personalized Recommendations

The digital experiences of many users, whether browsing media or shopping online, frequently feature suggestion sections beneath the primary content. These sections present related items or products that other customers have also purchased.

Modern consumers increasingly anticipate websites will offer tailored experiences. This necessitates that websites gather information about their visitors to display relevant content and suggestions.

Crossing Minds: From Consumer App to B2B Solution

Crossing Minds was founded by Alexandre Robicquet, alongside Emile Contal and Google X founder Sebastian Thrun, a Stanford professor. The company debuted in 2018 at TechCrunch’s Disrupt Battlefield with Hai, a consumer application focused on providing recommendations for entertainment options like books, music, shows, video games, and restaurants.

After two years, despite achieving a substantial user base and securing several prominent clients, the company encountered obstacles in its recommendation approach. This led to a strategic pause and a subsequent shift towards a business-to-business model.

“The trend towards personalization is pervasive, and even the future of search will involve filtering,” Robicquet explained to TechCrunch. “The goal isn’t simply creating a recommendation engine for a single business or API, but developing a scalable solution capable of serving numerous businesses.”

Addressing the Challenges of Personalization

Robicquet highlights that a significant portion – up to 60% – of website visitors are often new users, presenting a “cold start” problem. Furthermore, factors like the phasing out of third-party cookies, stricter privacy regulations, and the difficulty of tracking users across sessions create substantial hurdles in identifying website visitors.

Crossing Minds addresses these challenges by developing a recommendation system based on on-site user actions. This allows businesses to enhance customer discovery and engagement without requiring personally identifiable information.

The Crossing Minds Model

The company integrates with clients’ existing databases and constructs a predictive model within approximately two weeks, utilizing key performance indicators. Its Software-as-a-Service (SaaS) model operates on a per-recommendation fee structure.

Recent Funding and Growth

On Monday, Crossing Minds announced a $10 million Series A funding round, spearheaded by Radical Ventures. Existing investors, including Index Ventures, Partech, and Lerer Hippeau, also participated in the round.

Robicquet intends to allocate the new capital to expand its engineering team, accelerate product development, grow its customer base, and strengthen its leadership team.

Proven Results with Key Clients

Crossing Minds currently collaborates with several companies, including Penguin Random House, Danone, and Inkbox. The company reports an average sales increase of 93% and a 120% improvement in click-through rates for its customers.

Tomi Poutanen, co-founder of Radical Ventures, notes that companies like Inkbox experienced a significant turning point after partnering with Crossing Minds. He emphasizes that the observed improvements in conversion rates, repeat purchases, and customer retention are key drivers of the company’s economic success.

Inkbox Case Study: Remarkable Gains

For instance, Inkbox, which began working with Crossing Minds in February, has already seen substantial gains, including a 250% increase in email click-through rates, a 348% rise in items added to carts, and a 68.6% increase in on-site conversions for new users, according to Crossing Minds.

“Alexandre, Emile, and Sebastian possess a truly unique skillset,” Poutanen stated. “Their strong foundation in mathematics and deep-tech expertise is rare. They have a profound understanding of product inventory and how to effectively leverage it.”