Koah, a startup, has raised US$5 million in seed funding to help AI app developers monetize their products through ads.

The funding round was led by Forerunner, with participation from South Park Commons and AppLovin co-founder Andrew Karam.

Koah places sponsored ads in AI apps such as AI assistant Luzia, parenting app Heal, student research tool Liner, and creative platform DeepAI.

Advertisers using Koah include Upwork, General Medicine, and Skillshare.

Koah focuses on AI apps with users outside the United States, such as in Latin America, where developers may find it hard to charge subscription fees.

According to Koah’s founder, the company’s platform is 4x to 5x more effective than older adtech solutions, with a 7.5% clickthrough rate and early partners earning US$10,000 in their first 30 days.

Koah plans to continue refining how its ads match user intent in AI chat environments.