Flam raises $40 million Series B, nears $100 million ARR

Flam's founder and CEO Shourya Agarwal says he started the company after observing that digital content has evolved in waves — from text to images to video — but each wave produced media that flows only one way, from creators to viewers. He believes demand for interactivity has always existed, but creators lacked a way to deliver it. That gap is what the company is targeting with an infrastructure stack it says is backed by more than 15 patents.

The platform's three formats are Flicks (AI-generated interactive videos), Airboards (high-fidelity 3D content streamed to devices and camera interfaces, generated via text and image prompts using Flam's Fable model), and Visual Agents (hyper-realistic avatars for real-time conversations). The Visual Agents rely on an identity-preservation and motion-transfer model called Fantom alongside a 26 billion-parameter mixture-of-experts model called Falcon, which the company says delivers 30 millisecond time-to-first-token inference speeds.

What stands out is the tension between Flam's stated stealth mode and its commercial traction: more than 100 enterprise customers including Google, and a claim of fast approaching $100 million in annual recurring revenue, a target it hopes to reach next year. QED Investors Managing Partner Nigel Morris said the pattern for prior interactive-content attempts was "compelling demos that never scale," and that Flam's differentiated AI infrastructure, enterprise deployability without an engineering lift, and commercial traction convinced QED. Whether those customer relationships and the ARR target hold up now that Flam is publicly fundraising — rather than the technology itself — is likely to be the measure investors and enterprise buyers watch.