Cuttable AI Ad Platform Adds Feedback Loop After A$20M Series A

What happened

Cuttable, the Australian startup that turns ecommerce brand assets into ready-to-run social ads, announced a new version of its platform in New York on October 23. The company is pitching it as more than an ad generator: a system meant to tell marketers what to make next.11 The launch comes with an A$20 million Series A led by Airtree Ventures. It also lands about a year after Cuttable entered the U.S. market, which the company says now brings in 40% of its revenue.11

The platform works in a loop. It reads a brand's website, social channels and guidelines, then builds an editable brand strategy and brand kit. Marketers write a brief in plain language and get back finished ads they can edit. Those ads can be built from the brand's own product photos and footage, or from Cuttable's AI content studio, called Shoots, which creates and extends photo and video content.11 Ads publish straight to Meta Ads Manager. A module called Ad Insights then pulls performance numbers back from Meta, including thumbstop rate, click-through rate and return on ad spend, so the next brief starts from what worked.11 Cuttable says this feedback loop, not the generation step, is what sets it apart from tools that only make ads or only report on them.11

CEO Sam Kroonenburg, who founded and sold A Cloud Guru in 2021, argues that making an ad has never been the hard part. The hard part, he says, is knowing which ad to make next.11

From animated stills to brand-trained video

The most telling part of this release is how far the product has moved in about 15 months. When Cuttable launched in Australia in mid-2025, it described itself as a fully automated "AI creative agency." It said no humans were involved in making the ads, and that its AI had been trained by senior advertising strategists.17 Early customers were mostly positive but frank about the limits. A digital manager at Merry People, which took part in the pilot, said the output was then mostly lightly animated ads made from existing images: useful as a supplement, but not a replacement for real production.17

The company's own materials now describe a much wider range. Cuttable says it produces trending static ads, short-form video, longer edited narrative ads and lifelike AI photography and video trained on each brand, for both Meta and TikTok.1 It says it has always cut ads from a brand's existing images and video, but can now generate new brand-trained footage meant to look like it came from a real shoot.1 Its pricing reflects the change. Making and re-briefing ads is free, and the company charges when an ad is exported or published. Shoots run on a separate credit system: one credit per image, three credits per second of video.4

That pricing points to a broader trend. Remixing assets a brand already owns is cheap. Generating new synthetic video costs real compute, and the vendor passes that cost on. Cuttable is selling both, but it is clearly steering customers toward its assembly and decision-making layer as the main product.

Accounts differ a little on how much the product now relies on outside data. The press release focuses on the link with Meta.11 Coverage from AI Press Room adds integrations with Shopify, Klaviyo, Triple Whale and Motion. It also describes recommendations that factor in stock levels, for example pushing products that are about to sell out.20 Cuttable's website lists Northbeam, Triple Whale and Motion as sources whose attribution and creative-analytics data feed into briefs.4 Taken together, these accounts describe a tool moving deeper into the marketing data stack, not just sitting on top of Meta.

The UGC arms race Cuttable is stepping into

Cuttable's website says its outputs range "from static to UGC," meaning user-generated-content-style video.1 That puts it in one of the busiest corners of AI advertising. A crowded field of tools now promises creator-style ads without hiring a creator. UGCVideo.ai sells customizable AI avatars and pitches "real imperfections" like visible skin texture so ads look less synthetic.2 AdCreative.ai offers talking-head, show-and-tell and fashion try-on UGC formats built from a product photo and a chosen avatar.6 EzUGC advertises more than 300 AI actors, shots that put the product in the actor's hand, and localization into 29 languages.9

Invideo has taken an agent-based approach. Its system casts a synthetic creator, keeps that face and voice consistent across shots, and adapts a winning ad for new markets with a local-looking presenter.3 Invideo has also published some unusually specific production numbers. In one documented run, a two-person team made four to five UGC ads a day at roughly $125 per ad. About half of the generated video clips were thrown away.10

Against that field, Cuttable is not mainly selling realistic avatars. Its own site warns that generic AI generators produce "slop," and it positions itself as a production system rather than a set of separate tools.1 This looks like the right call. Avatar and lip-sync quality is quickly becoming a commodity, as the near-identical feature lists across these vendors show. What is harder to copy is a record of which creative actually made money for a specific brand, and the plumbing that feeds those results into the next brief.

The numbers, and where they diverge

Cuttable's main data claim is that across 280,000 ads and more than $320 million in Meta spend, one ad in eleven returned ten times its cost or better, and a handful of ads end up carrying a whole account.11 AI Press Room describes the same dataset differently: about 1% of ads produced half of attributed revenue.20 The two claims don't conflict, but they stress different things. One reads as encouraging (plenty of ads win big). The other reads as harsh (almost all revenue comes from a tiny minority). Both support Cuttable's argument that the scarce skill is picking winners, not making more ads.

Customer figures have grown fast, though they are reported inconsistently. In March, Startup Daily said Cuttable worked with more than 200 brands, and that U.S. inquiries made up about half of inbound demand.19 The October release says more than 420 brands across the U.S., Australia, New Zealand, Asia and Europe, including lululemon, Rodan & Fields and Brick.11 Meanwhile the company's website still cites results from 300 brands and $30 million in monthly spend.1 The company says brands average a 4.4x return on ad spend and see a 37% lift in account-level return after switching.11 These are self-reported numbers, and no independent audit is cited in any of the coverage.

The U.S. expansion plan has also changed. At the October 2025 U.S. launch, which included an offer of 1,000 free ads to every American online store, Cuttable said it would open a U.S. headquarters in Austin, Texas, in early 2026.12 In March it opened a New York office instead.19 Now it says it is hiring in San Francisco, and AI Press Room lists teams in Melbourne, New York and San Francisco.1120 Austin does not appear in the latest coverage.

Funding and valuation

The money has followed a steep curve. A second seed tranche in August 2025 brought total seed funding to A$10 million at an A$44.5 million valuation.16 A round of about A$5.7 million in March doubled the valuation to roughly A$100 million and added Airtree to the investors.19 Airtree has now come back to lead the Series A.11 AI Press Room says Square Peg, Rampersand and Glitch Capital also took part.20 None of the coverage gives a Series A valuation. Airtree partner James Cameron, whose firm also backed A Cloud Guru, said Cuttable has grown faster than the firm's already high expectations.11

Why it matters

The broader point concerns where value sits in AI media production. Generating images, video and synthetic creators is getting cheaper and more interchangeable every quarter. The numbers Cuttable releases (a 3.4x jump in creative output heading into November, and returns concentrated in a few ads) point to a market where volume alone doesn't help.11 Its strategy is to own the decision step: which product, which angle, which format to try next.

There are real risks. AI Press Room notes that the adtech field is crowded and that proving consistent returns across different clients will decide whether Cuttable can keep growing.20 Its reliance on Meta is both a strength and a weak point. Cuttable's own former advisor, a past head of marketing science at Meta, has said ad success now depends on volume and variation. That is exactly the kind of feature a platform owner could eventually build in-house.17

For now, the reporting describes a company that started as a fast ad generator and is now competing on whether its recommendations improve results. That is a stronger position than competing on realistic avatars, and it is the right fight for Cuttable to pick.