Australian startup Heatseeker has raised US$1.5 million ($2.31 million) in pre-seed funding as the company transforms how businesses conduct AI-powered market research through artificial intelligence technology. The female-led venture now plans to pursue a US$5 million seed round, expecting significant growth from its current US$7.3 million valuation.
Sydney-based Heatseeker was established in 2023 by cousins Kate O’Keeffe and Fiona Triaca, working alongside former Atlassian product lead Rutger Coolen. The trio aims to disrupt the US$110 billion global market research sector with their innovative AI-powered market research approach.
Revolutionizing Traditional Research Methods with AI
The company addresses a fundamental problem in conventional market research: the disconnect between what consumers say they want and their actual purchasing behavior. O’Keeffe, who serves as chief executive, explained that traditional methods often fail because asking panels about product preferences doesn’t reflect real buying patterns.
“It bothers us that there are landfills full of products that nobody ever wanted because we asked a panel to comment on whether they want it. And of course, a panel is not a buyer,” O’Keeffe stated.
Heatseeker’s AI-powered market research platform delivers real-time behavioral testing that validates business ideas within hours rather than weeks. The system creates a “digital twin” of target market audiences by conducting live experiments visible to tens of thousands of people, then processes this data to provide immediate answers to additional questions.
Cost-Effective AI-Powered Market Research for Fortune 500 Companies
The startup has attracted major corporate clients including Salesforce and DoorDash through its AI-powered market research solutions. O’Keeffe emphasized that Heatseeker’s primary value lies in reducing costs while minimizing risks associated with high-stakes business decisions.
Six to eight experiments on Heatseeker’s AI-powered market research platform cost between US$16,000 and US$18,000, significantly undercutting traditional methods that typically range from US$60,000 to US$200,000 per study. The platform delivers insights in real-time, eliminating the guesswork that often accompanies business decisions.
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Real-World Application: Fashion Industry Case Study
Real-World Application: Fashion Industry Case StudyA practical example demonstrates how AI-powered market research delivers superior results. A US fashion brand previously made purchasing decisions for diverse markets like Miami and Los Angeles by consulting focus groups at their New York headquarters. However, these markets have distinctly different consumer preferences.
O’Keeffe noted that Miami buyers prefer “much more flamboyant, colorful” styles, while New York consumers favor “much more refined” aesthetics with frequent use of black, and Los Angeles represents another demographic entirely.
Using Heatseeker’s AI-powered market research platform, the fashion brand tested three colorways of a new sneaker across these specific markets, comparing results against existing products with known sales volumes. This approach provided “quantum evidence-backed purchasing decisions” that proved crucial during challenging economic conditions.
The testing became particularly important as trade tensions affected profit margins. “Margins have been narrowed thanks to tariffs. So they couldn’t afford to move stock around … have people walk into the Miami store and then ship them sneakers from New York,” O’Keeffe explained.
Strong Team and Business Model
Heatseeker’s team includes product veterans from major technology companies such as Atlassian, Uber, PayPal, and Dropbox. The company operates across two continents, with product development based in Australia and go-to-market operations in the United States, following the successful model of Australian technology companies like Atlassian and Canva.
The startup currently generates almost US$1 million in annual recurring revenue from its AI-powered market research services and expects to reach this milestone when pursuing their seed funding round.
Challenging Funding Environment
O’Keeffe acknowledged the difficulties of raising capital in the current market environment. “It is a brutal time to be raising. This isn’t 2021 anymore, and we’re also past the AI hype bubble,” she observed.
Current investors focus on “depth,” “deployment,” and “land and expand” strategies rather than “hyperscale” growth, with renewed attention to fundamental business metrics.
San Francisco-based Capital F led Heatseeker’s US$1.5 million pre-seed round in May, which O’Keeffe described as “transformational” for the company. The US investor has provided valuable guidance for planning the upcoming seed round and developing their American market strategy.
The company expects to close its US$5 million seed round within weeks, anticipating a “substantial multiple” on their current valuation as they approach US$1 million in annualized recurring revenue from their AI-powered market research platform.
