Most organizations need you to fill up a common form and then generate a username and password because there are so many apps and tools to explore. After you have gone through all of that, you will discover that the software is not everything it claims to be. Arcade is on a mission to change this. The interactive demo startup, which went public today, makes it easier for businesses to create “arcades,” or demonstration movies that walk customers through how their products function.
Caroline Clark and Rich Manalang, both former Atlassian employees, founded the company, which also received $2.5 million in seed funding from Upfront Ventures, Sequoia, Bond, and a group of angel investors, including Mathilde Collin, Laura Behrens Wu, Jaron Glover, Eric Wittman, Jonathan Widawski, and Lenny Rachitsky. The startup formed by Clark and Manalang in early 2021 and launched in private beta last July. So far, there are around 300 people on the waiting list. 90 companies have started using a free version of the platform and have so far constructed over 125 arcades.
Arcade remembers what you click on so that users may create a version of their demo and then embed snippets of the product into websites, blogs, and tweets so that those who haven’t used it before can see it before signing up for a trial can. Clark, who has a marketing background, told TechCrunch that she and Manalang discovered that many consumers were discovering their products outside of the website while at Atlassian, which she claims pioneered the concept of product-led growth. The trouble was that they could not see a way to improve those discoveries. “We wanted to build a universe where consumers could find items in a fun and easy way that showed them exactly what they were getting,” she continued.
Customers have always had expectations of the items and equipment they purchase, but Clark claims that in the last few years, their thinking has altered to the point that they will no longer sign up blindly. Selling used to entail hiding behind the demo, and it was more of a “gotcha” moment once the corporation had the person’s information. Clockwork, an Arcade customer that works with financial professionals, frequently asks new users to connect their invoices to the platform so they can see how Clockwork works, but Clark says it’s a huge ask.
Clockwork can provide potential clients a sample of their platform without having to upload any data by using Arcade. Another customer, Carta, is using arcades in its social media, according to Clark. Arcade will be able to expand its product and website with the extra cash, as well as hire more engineers and product designers. Clark claims that her three-person team has been aiding 90 businesses, but she hopes to increase that number by the end of the year.
The company will concentrate on marketing, functionality, and distribution in the future. “We’re here to help folks understand what they’re getting themselves into before they load their data,” Clark explained. “We intend to devote more resources to product upgrades, integration with other properties, and how customers may help us build a more powerful tool,” says the company. Clark was a friend she had known for a couple of years, according to Aditi Maliwal, a partner at Upfront Ventures, who is “eager to start on a five- to ten-year — if not longer — adventure with.”
Maliwal continued, “She is a values-driven, intellectually honest founder.” “I back strong entrepreneurs who, in my opinion, have a founder-market fit and are developing a genuine vision.” I knew right away that whatever Caroline was working on, I wanted to be a part of it. The PLG business is likewise rapidly expanding, and our worlds are now virtual. Getting on a Zoom or a phone conversation with a sales rep to check out a vendor’s product feels like a disruption to a user’s wants and flow. Users should be able to see an example of their data on a vendor’s landing page much more easily.
Arcade gives creators the tools they need to create wonderful experiences and feel proud of their work.” Maliwal believes the founders both focused on finding design partners who could turn into full-time customers from the beginning. She noted that while at Atlassian, they witnessed firsthand how effective demonstrating your product to prospects and customers can be. “They saw the pain point early on and know that difference is all about delight in the design and keeping it as simple as possible for marketers and end-users,” Maliwal added. “Finally, Caroline and Rich are both committed to establishing a large company, beginning with a forward-thinking product and a top-notch team.”
