Tel Aviv-based startup Sett has emerged from stealth mode with significant funding, raising a total of $27 million to date. The most recent tranche, a $15 million Series A, was led by Bessemer Venture Partners, with additional investments coming from Saga VC, Vgames, and former Tripledot founder and head, Akin Babayigit, now at Arcadia Gaming Advisors. Previously, Sett secured $12 million in seed funding from F2, Bessemer, and gaming industry angels. Founded in 2022, Sett has quietly developed its AI agents for mobile game development and marketing, focusing on a critical challenge in the highly competitive gaming industry: user acquisition. According to CEO Amit Carmi, while creating games is relatively straightforward, achieving commercial success is statistically rare due to the sheer volume of games available. Companies spend enormous sums on marketing—around $29 billion annually, as per AppsFlyer’s research—to generate roughly $100 billion in revenue. Sett's solution leverages AI to streamline the creation of "playable" ads and in-game marketing content, which Carmi sees as crucial for engaging users in today's privacy-conscious climate. Playable ads are interactive, mini-games that simulate the actual game experience, designed to entice users to download or spend more time playing. However, producing these ads is traditionally costly and labor-intensive, often requiring the creation of new game versions. Sett claims its AI technology can reduce the time to create such content by 15 times and cut costs by 25 times. By automating tasks that typically require manual coding, placement, and measurement, Sett aims to help gaming studios stand out and optimize their marketing budgets. The company already counts major players like Zynga, Scopely, Playtika, SuperPlay, Rovio, Plarium, Candivore, and Unity among its clients. Despite its technical prowess, Sett remains cautious about aggressive marketing. Instead, the startup plans to use its fresh capital to expand its team, hiring more engineers and AI specialists. Over 100 gaming studios are on a waiting list to integrate Sett's technology, underscoring the demand for efficient marketing solutions in the industry. Interestingly, the emergence of Sett coincides with AppLovin's decision to divest its gaming assets to Tripledot for $800 million—a move that reflects the changing dynamics in the tech landscape. AppLovin's initial estimate was $900 million, but the deal, which will be formally announced during AppLovin’s Q1 earnings, highlights the strategic value of having AI-driven tools in a crowded market. AppLovin itself has invested heavily in AI, particularly through its SparkLabs division, which creates playable ads. With a market cap of $103 billion, AppLovin is shifting its focus to broader ambitions, including a potential bid for TikTok's global business. The sale of its game studios to Tripledot indicates that, for AppLovin, the core value lies in its AI capabilities rather than its studio operations. Arcadia’s Babayigit, drawing on his experience at Tripledot, views Sett's proposition as highly promising. "It’s a phenomenal team and an incredibly talented group of people," he commented, adding that while AI can automate specific aspects of game production and marketing, the complexities of crafting a standout game might still require human touch. Sett's approach to AI integration is strategic. While the ultimate vision may include full automation of game development and marketing, Carmi emphasizes the current focus on enhancing creative and in-game content. "I don’t think the genesis is to replace all aspects of game design and execution," he noted. "The bar is extremely high, and the details matter immensely." Industry experts believe Sett's AI-driven marketing tools could revolutionize how mobile games reach and retain users. With a growing client base and innovative technology, Sett is poised to make a significant impact in the gaming sector, addressing a critical pain point with a tech-savvy solution. Sett's prudent growth strategy and emphasis on collaboration with top talent suggest a strong foundation for future success in a rapidly evolving industry.