The greeting card startup Escargot has raised $2.75 million in seed funding to expand its service that combines physical mail with artificial intelligence. Founded by cousins Andrew Gold and Aaron Albert, the company aims to make sending paper cards for birthdays and holidays as simple as using a mobile app, primarily targeting Gen Z and millennials.

Launched in February, Escargot operates via an app and website where users can send physical cards for about $8 each or subscribe for approximately $10 monthly. The recent funding round was led by investors including Wischoff Ventures, Hannah Grey, and South Park Commons.

Betting on a Nostalgic Counter-Trend

The founders are capitalising on a broader cultural shift towards analog media, such as landlines and record players, which they see as a reaction to the dominance of digital social platforms. "People want to feel human," Albert told Business Insider, framing their product as a nostalgic foil to futuristic Silicon Valley tech.

Despite this analog focus, the company is not anti-technology. "We're not Luddites," Albert stated. Instead, Escargot plans to use technology, including AI, to facilitate more meaningful real-world connections. "We are going to use it in interesting ways to power some of the experiences," said CEO Andrew Gold.

How AI Powers the Greeting Card Experience

Escargot integrates AI in two key ways. First, if users are unsatisfied with existing card art, they can use Google's Gemini AI to "remix" designs or upload personal photos. Second, the app can recommend moments to send cards by analysing a user's calendar and contact list, with permission.

The company enters a market valued at an estimated $7.1 billion in the US, according to Grand View Research. While facing competition from incumbents like Hallmark, which also offers a digital-to-physical card service, Escargot's strategy focuses on a younger demographic. Gold noted that most birthdays registered in the app are for people born after 2000.

Expansion Plans in a Growing Sector

Escargot is part of a wave of startups using AI to foster offline relationships. Similar companies include Retro, which offers a photo postcard feature, and Rodeo, founded by former Hinge executives, which uses AI to help friends plan in-person meetups.

With five full-time employees, Escargot plans to use its new capital to build out its product ecosystem. The company's pitch to investors emphasised plans to expand beyond simple greeting cards into areas like innovative gift cards and other tools for maintaining personal connections.