Melius Pivot Has Secured $25 Million in New Funding

The startup scrapped its original product to focus on AI-driven creative asset generation for marketers.

Updated on Oct. 6, 2026 in Startups

A sharp, close-up geometric detail of a glass and steel building facade in New York City. — Melius Pivot has secured $25 million in total funding after shifting its business model from performance marketing software to AI-driven creative asset generation. AI Illustration. Upload story photo >

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New York-based Melius has raised $25 million in total funding after shifting its business model away from performance marketing tools. The company reached $1 million in annualized revenue within two months of exiting stealth in July 2026.

Why it matters

The pivot reflects a strategic bet by the founders that creative asset generation offers higher market potential than their original performance marketing software. The company successfully executed a complete technical reset, replacing its entire codebase to pursue this new direction.

Melius secured $25 million in total funding across a $20 million Series A and a $5 million seed round. These figures follow the company's early success of reaching $1 million in annualized revenue just two months after exiting stealth.

The players

Melius

A New York-based startup that shifted its focus from performance marketing software to generative AI creative tools.

CRV

A venture capital firm that led the $20 million Series A round for Melius.

General Catalyst

A prominent venture capital firm that led the $5 million seed round for Melius.

Higgsfield

An AI company currently operating with a $5.4 billion valuation and $700 million in annualized revenue.

Ramp

A corporate card and spend management platform where the Melius founders previously worked as engineers.

The details

Melius transitioned from a performance marketing tool to an AI agents lab that automates the production of ad campaigns, images, and videos. To facilitate this change, the founders discarded their initial codebase entirely, pivoting their engineering focus toward inputting plain language to drive creative output. The team leverages their background as former engineers at Ramp to build out this new platform.

Over a year ago, Melius launched its initial AI marketing tool.
The company emerged from stealth in July 2026.
Higgsfield reached a $5.4 billion valuation in August 2026.
Melius announced its $25 million funding round on October 6, 2026.

Market Landscape

Melius's move aligns with a broader trend where startups are pivoting away from broad performance marketing tools to specialized creative generation. This transition positions the firm to compete in a high-growth sector where competitors like Higgsfield have already scaled to billion-dollar valuations.

Business owners should note that a successful pivot requires willingness to scrap existing technical investments when market fit proves elusive. Evaluate your current software stack to see if your internal creative workflows could be improved by newer generative AI agent capabilities.

The takeaway

Technical debt should not prevent a pivot when the original product lacks sufficient market potential. Prioritize the agility to re-engineer your core product to align with higher-margin creative opportunities as the AI landscape evolves.