Clay, a burgeoning sales automation startup, has successfully raised a Series C funding round at a staggering $3 billion valuation, according to sources familiar with the transaction. This significant financial milestone was led by CapitalG, though neither Clay nor CapitalG have commented on the development.
This substantial funding round comes on the heels of a recent move by the New York-based company to allow its employees to participate in a secondary stock sale valued at $1.5 billion. The tender offer, spearheaded by Sequoia, permitted the purchase of up to $20 million in employee stock, providing liquidity options for its team. While the secondary sale occurred at a valuation notably lower than the current one, Clay’s CEO and co-founder, Kareem Amin, expressed intentions to facilitate such stock sales annually, potentially allowing employees to benefit from future increases in valuation.
Founded in 2017, Clay initially struggled to find its niche. However, a strategic pivot led by Amin to integrate AI into the company’s offerings significantly enhanced its value proposition. By targeting salespeople and marketers, Clay helps users discover vital data and automate go-to-market strategies, making it an invaluable tool for large enterprises like OpenAI, HubSpot, and Canva, as well as over 100 small consulting firms.
Clay faces competition in the sales tech arena from companies like ZoomInfo, Lusha, Apollo.io, and newer market entrants such as Unify and Common Room. Despite this, the company’s innovative approach and growing customer base highlight its competitive edge.
The latest investment reinforces the confidence major investors have in Clay’s business model and growth trajectory. Other notable investors include Meritech Capital, Boldstart Ventures, Maple VC, First Round Capital, and Box Group.
As the startup landscape continues to evolve, Clay stands out as a key player in the sales automation sector, poised for further expansion and success.
