AI interactive content startup Flam raises $40 million in Series B led by QED Investors

AI interactive content startup Flam has raised $40 million in a Series B funding round led by QED Investors, as it seeks to develop its AI technology and expand enterprise sales globally.

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The round also included Claypond Capital and investors Martin Chavez, Olivier Pomel, Venky Harinarayan and actor Shah Rukh Khan. Existing backers RTP Global and Dovetail also participated.

Flam said the new capital will be used for research and development of its AI models, expanding its product range and growing enterprise sales internationally.

According to the startup it has signed more than 100 enterprise customers over the past six quarters, with Google among the companies it has named as customers.

Its technology is used across areas including marketing, product visualisation, learning and development, entertainment, fan engagement, customer support and sales.

“Flam is built on a simple observation. Content has moved in waves, from text to images to video, and every wave flowed one way, creator to viewer. We think interactive is the next default for the internet,” founder Shourya Agarwal said.

“The demand was always there. The technology wasn’t. We have made interactivity effortless to build and deploy at enterprise scale,” Agarwal said.

Founded in 2021, Flam began with mixed-reality experiences for brands and has since broadened its focus to AI-powered interactive content. It is headquartered in San Francisco and operates in India and Japan.

It currently offers three main formats: Flicks, Airboards and Visual Agents.

Flicks allows elements such as a person, product or scene to change while a video is playing. Flam said the format uses its compression technology to deliver the different variations during playback.

Airboards provides interactive 3D content through a camera interface, with touch, voice and haptic interaction. The content is designed to stream without requiring users to install a separate app.

Its third format, Visual Agents, consists of AI-generated characters designed to hold real-time conversations and perform actions through a video-based interface.

Flam has developed a series of AI models supporting its products, including Fable for generating visual content, Fantom for identity-preserving video synthesis, Finesse for multilingual speech, Forge for video editing and Falcon, a 26-billion-parameter mixture-of-experts large language model.

Flam reports holding more than 15 patents.

Nigel Morris, co-founder and managing partner at QED Investors, said Flam stood out from AI companies focused largely on existing forms of content.

“Almost every frontier AI content company we see is optimizing what already exists. Flam pointed at something else: how much of the content ecosystem is still untouched. That gap is bigger than most people think, and Flam is the first team we’ve seen with the infrastructure to go after it,” he said.

Sandeep Patil, a partner at QED Investors, said the company’s commercial growth and pace of AI development had influenced the investment.

“The traction was too exceptional to ignore. Every major shift in internet content has created new platforms and new winners,” he said. 

The latest investment follows Flam’s $14 million Series A funding round announced in May 2025, which was led by RTP Global with participation from Dovetail and other investors.

At the time, Flam said the round will help it expand internationally and develop its generative AI infrastructure and enterprise products.