Arrow AI by Custom Social

Arrow AI by Custom Social

Early Stage

Our mission is to make digital advertising work for everyone

Our mission is to make digital advertising work for everyone


Raised to Date: Raised: $157,480

Total Commitments ($USD)



Start Date


Close Date


Min. Goal
Max. Goal
Min. Investment


Security Type

Equity - Common



SEC Filing Type

RegCF    Open SEC Filing

Price Per Share


Pre-Money Valuation


Rolling Commitments ($USD)

Reporting Date


Days Remaining
% of Min. Goal
% of Max. Goal
Likelihood of Max
Avg. Daily Raise


# of Investors


Create a free account today to gain access to KingsCrowd analytics.
Year Founded



Marketing & Advertising

Tech Sector


Distribution Model




Capital Intensity



Berkeley, California

Business Type


Arrow AI by Custom Social, with a pre-money valuation of $18.1 million, is raising funds on StartEngine. The company helps small businesses target their social media ads using artificial intelligence. The patent-pending technology of the company uses interest-based targeting and creates a proprietary data set. Rolan Reichel and Pablo Munoz De Cote founded Arrow AI by Custom Social in January 2019. The current crowdfunding campaign has a minimum raise of $9,999.70 and a maximum raise of $1,069,999.25, and the funds will target technology investments, scalability, and AI development. Arrow AI by Custom Social became revenue positive in the first year and has generated $681,000 since its founding.

Summary Profit and Loss Statement

Most Recent Year Prior Year












Net Income



Summary Balance Sheet

Most Recent Year Prior Year




Accounts Receivable



Total Assets



Short-Term Debt



Long-Term Debt



Total Liabilities



Financials as of: 06/24/2021
Create a free account today to gain access to KingsCrowd analytics.

Upgrade to gain access

Pay Monthly
Annually (Save 17%)


$25 /month
billed annually
Free portfolio tracking, data-driven ratings, AI analysis and reports
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings and analyst reports
Deal explorer and side-by-side comparison
Startup exit and failure tracking
Startup market filters and historical industry data
Advanced company search ( with ratings)
Get Edge Annual
Already a member? Log in here.

Ratings KingsCrowd Startup Rating Methodology Article

Blurred Ratings Bars Blurred Ratings Bars

Analyst Report Analyst Report Methodology Article


One of the most difficult parts of running a small business is building a steady stream of new customers. Whether a business is selling shoes online or selling tacos locally, revenue will stagnate unless more people learn about the brand. Social media advertising is the most obvious way to acquire new customers in today’s market. Roughly 55% of small businesses in the US advertise on social media, and two-thirds of those businesses run ads on Facebook. 

However, Facebook advertising isn’t automatically effective. Even though Facebook rakes in almost $85 billion in revenue from ads each year, most companies waste 20-50% of their social media spend. Entrepreneurs’ confidence in Facebook ads is low — 62% of them say that Facebook ads are ineffective. These issues are compounded by Apple’s recent iOS 14 privacy controls that allow users to restrict data tracking, making core Facebook ad strategies like retargeting impossible. 

Arrow AI by Custom Social hopes to save the day for small businesses at their wits’ end with Facebook ads. The company’s simple Google Chrome browser extension layers on top of brands’ Facebook ads manager, leveraging an extensive data set of user interests to recommend innovative audience targeting strategies. For just $9 a month (or $49/month for larger teams), small businesses can run ad campaigns at 80% accuracy. 

Arrow AI’s current StartEngine raise has been rated a Deal to Watch by the KingsCrowd investment team.

Next Section: Price


Arrow AI is offering equity at a $18.1 million valuation. This valuation is too high for Arrow’s current level of revenue. At just $395,453 in revenue from 2020, an $18.1 million valuation represents more than a 45x revenue multiple, which is not justifiable. Advertising technology revenue multiples are typically closer to five-to-10x, so Arrow AI is significantly overpriced. That’s why its price rating is below average. 

Next Section: Market


There are 31.7 million small businesses in the US, and almost all of them are good candidates for Facebook advertising. Facebook generated almost $11.9 billion in advertising revenue from businesses in the US and Canada in the first quarter of 2021 alone. Some analysts estimate that companies spend an average of between $200 and $800 on Facebook ads per month. At that budget, a $9 spend on Arrow AI per month (or even a $49 spend on the premium Arrow plan) is easily justified, if Arrow drives the optimizations it promises. 

Let’s break the opportunity down a little further. Assume Arrow reached just 1% of small businesses in the US (317,000 small businesses), and they each paid $9 per month for the Arrow browser extension (omitting higher revenue potential from the $49 premium plan, to be conservative). That would generate more than $34 million in annual revenue for Arrow. That figure is still just a drop in the bucket compared to total Facebook ad spend. 

In sum, Arrow AI is addressing a huge, lucrative market with tens of millions of eligible customers. As a result, the company’s market rating is one of its highest.

Next Section: Team


Arrow AI was founded by Rolan Reichel and Pablo Munoz de Cote. Riechel, the company’s CEO, is an experienced entrepreneur. His marketing career began in the mid-2000s, when he served as a sales and marketing director for various companies and advertising agencies. He subsequently founded RLLCLL, a programmatic advertising technology company that was acquired by Aquarius AI (which trades on the Toronto Venture Stock Exchange) in roughly 2017.

Less is known about Munoz de Cote’s background. He is apparently a serial entrepreneur in e-commerce and biotechnology. He also runs a multinational pharmaceutical and housewares company out of Mexico City. He is only a director for Arrow AI, so he doesn’t seem to be committed full-time. 

Beyond the co-founding team, Arrow AI is led by CTO Bill Rose and Vice President of Product Justin Lockwood. Rose has more than 30 years of experience in engineering and has held the CTO role twice before at advertising technology companies. He is deeply experienced in this space. Lockwood is himself an entrepreneur, having founded both a startup and a digital design agency. He lends more than 15 years of design experience to the Arrow team. 

Altogether, the Arrow AI team has decades of combined experience in entrepreneurship, much of it specifically within the fields of advertising and advertising technology. The team is well balanced with business leaders, technology leaders, and product/design leaders. Therefore, Arrow AI’s team rating is one of its highest. 

Next Section: Differentiators


Arrow AI’s pitch is centered around being the most efficient, most lightweight Facebook ad optimization tool on the market. Those claims are difficult to verify. Many other companies offer similar ad optimization solutions and also boast improved ad accuracy. Hubspot, for instance, offers an ad optimization feature alongside its much broader set of marketing tools. also touts the ability to create custom target audiences from data. There is no shortage of ad tech companies making similar claims. 

The Arrow AI Chrome browser extension does seem to be one of the simplest ways for business owners who are not advertising experts to quickly optimize their Facebook ad spend. Additionally, the pricing plan for Arrow’s extension is very competitive, offering small businesses a cheap and easy way to improve their Facebook ads. If the product is as effective as the company claims, it might also outperform competitors from a quality standpoint. However, Arrow AI’s simplicity could also be its downfall. At present, the product feels more like a feature than an entire company. Other, more established ad tech companies could introduce similar browser extension tools that integrate with their broader product suites. Arrow’s technology is patent-pending, so the company has limited defensibility at this time.

Overall, Arrow AI’s product does offer limited differentiation from the crowded space of advertising technology companies, but it lacks a substantial defensive moat. Therefore, the company’s differentiation rating is close to average. 

Next Section: Performance


Arrow AI was founded in 2019 and has generated more than $681,000 in revenue over the last two years. Year-by-year revenue is less impressive. In 2019, Arrow brought in just over $289,000 in revenue, which grew  to $395,453 in 2020. These aren’t eye-popping revenue figures, but 37% year-over-year revenue growth is no small feat. It’s also impressive that Arrow has generated this amount of revenue from a relatively inexpensive product. At $9 per month, or $49 per month for a premium plan, Arrow has clearly brought in at least several hundred customers. Plus, the company has built a waitlist of 2,000 businesses. 

Arrow AI is also making plans to expand to other advertising methods. The company has secured access to Shopify and Pinterest to continue deepening data insights and serving business owners across additional platforms. 

Finally, Arrow AI has raised $900,000 in seed capital thus far, so the company’s fundraising capabilities are proven. With a seasoned and well-connected team of past entrepreneurs, raising additional capital to fund growth will likely be easier for Arrow than it would be for most companies. 

Arrow isn’t yet demonstrating explosive growth, but the company has brought a product to market, monetized it, and is growing steadily year-over-year. Each of those points is key for strong performance, so Arrow AI’s performance rating is quite high.

Next Section: Risks


All in all, Arrow AI is a relatively low-risk investment. The company has already brought a product to market, has hundreds (perhaps up to thousands) of customers, and is generating decent revenue. Prospective investors should note some risk contained within Arrow’s financial statements. The company is carrying some $1 million in liabilities and was low on cash at the end of 2020. An investment in Arrow also bears smaller risks on investment terms (the company’s valuation is far higher than industry revenue multiples would recommend) and time (at this pace, it will take Arrow a long time to grow to the point that investors would reap a return). All in all, though, Arrow AI’s risk rating is relatively low.

Next Section: Bearish Outlook

Bearish Outlook

Arrow AI has built a solid product that is generating revenue from a decent amount of customers. However, there isn’t any proof yet that this business is worth $18 million, or that it will ever grow explosively to be a major startup success story. Arrow’s simple Chrome browser extension seems more like a feature than a startup at this point, which raises a defensibility risk (particularly in the highly competitive space of advertising technology). Plus, Arrow AI’s burn rate seems quite high for a very young software company. It’s not clear where almost $500,000 in general and administrative expenses are going, and this burn might be part of the reason why Arrow AI was low on cash at the end of 2020. It’s simply a bit too early to say for sure that Arrow AI has the staying power to flourish in this crowded industry.  

Next Section: Bullish Outlook

Bullish Outlook

Arrow AI has proven early product-market fit, which is no small feat in the highly competitive advertising technology industry. Hundreds or even thousands of customers are already paying for the Arrow AI browser extension, with thousands more on a waitlist. Arrow’s pitch of simplifying Facebook ad management for small business owners seems to be working. The company is buoyed by recent iOS changes that complicate retargeting and make customized, audience-based advertising much more attractive. 

In addition, the sheer size of the social media advertising market means that Arrow AI could carve out a tiny niche and still thrive. With more than $11 billion being spent on Facebook ads per quarter in the US and Canada, there is clearly no shortage of budget for acquiring new customers. If only a small percentage of small businesses are willing to pay a measly $9 per month to see if Arrow can help optimize their ads, Arrow will be generating revenue hand over fist. 

Beyond these attractive tailwinds, Arrow AI benefits from the strong fundamentals investors look for in any startup. The founding team is very experienced, with decades of expertise not just in founding companies, but in founding advertising technology companies specifically. Revenue has grown steadily year-over-year since Arrow was founded, thanks in part to the $900,000 in seed capital that Arrow has already secured. Overall, there are several positive signals that Arrow AI has what it takes to continue its steady growth and capture value for investors.

Next Section: Executive Summary

Executive Summary

Arrow AI is an advertising technology startup offering a simple Google Chrome browser extension that layers on top of Facebook’s ads manager and helps small businesses better target their ads. Arrow AI has a proprietary database with trillions of data points on Facebook users’ interests and behavior. It leverages this data to recommend custom targeted ad audiences for each individual small business, supposedly resulting in 80% ad accuracy. After just two years in the market, Arrow has already generated more than $681,000 in revenue, with the potential of additional scaling after integrating with Shopify and Pinterest. 

Despite this traction, prospective investors should note that Arrow AI’s $18.1 million valuation is overpriced relative to typical advertising technology revenue multiples. There’s also concern that Arrow AI isn’t defensible enough to survive the intense competition of the ad tech space. A browser extension to optimize ads is more of a feature than a company, and competitors might be able to offer the same level of convenience within their more robust ad optimization suites. Nonetheless, Arrow AI is led by a team of deeply experienced advertising technology executives, has already raised almost $1 million in capital, and has generated strong interest from thousands of users eager to optimize their ads. Therefore, Arrow AI has been rated a Deal to Watch. 

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to

Founder Profile

Founder Profile: Rolan Reichel of Arrow AI

One of the most difficult parts of running a small business is building a steady stream of new customers. Advertising on social media such as Facebook is the most obvious way to acquire new customers in today’s market. However, Facebook advertising isn’t automatically effective.

Arrow AI by Custom Social hopes to save the day for small businesses at their wits’ end with Facebook ads. The company’s simple Google Chrome browser extension layers on top of brands’ Facebook ads manager. It leverages an extensive data set of user interests to recommend innovative audience targeting strategies. We reached out to co-founder and CEO Rolan Reichel to get an inside perspective on the industry’s challenges and learn how Arrow AI hopes to overcome them.

Note: This interview was conducted over phone and email. It has been lightly edited for clarity and length.

Read Founder Interview

Founders: enhance your startup's credibility on KingsCrowd. Create an account to claim this raise page.
Add to portfolio
Arrow AI by Custom Social on StartEngine 2021
Platform: StartEngine
Security Type: Equity - Common
Valuation: $18,050,000
Price per Share: $0.95

Follow company

Follow Arrow AI by Custom Social on StartEngine 2021

Buy Arrow AI by Custom Social's Deal Report

Warning: according to the close date for this deal, Arrow AI by Custom Social may no longer be accepting investments.

Arrow AI by Custom Social Deal Report

Get KingsCrowd’s comprehensive report on Arrow AI by Custom Social including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Arrow AI by Custom Social is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Arrow AI by Custom Social deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge