Clay Raises Series C at $3 Billion Valuation, Just Months After Tender Offer at $1.5 Billion

Clay, a startup focused on sales automation, has secured a Series C funding round at a valuation of approximately $3 billion, according to sources familiar with the deal. The round was led by CapitalG, though both Clay and CapitalG did not respond to requests for comment. The timing of this funding round is notable, coming just a month after Clay announced a secondary deal, or tender offer, where most of its employees could sell some of their shares at a $1.5 billion valuation. This tender offer was led by Sequonia, which agreed to purchase up to $20 million in employee stock. At first glance, selling shares at a lower valuation might seem disadvantageous, but Clay's co-founder and CEO, Kareem Aин, mentioned in May that he plans to conduct similar tender offers annually. This means employees could potentially have another opportunity to sell their shares at the new, higher valuation next year. Founded in 2017, Clay initially struggled to find its footing. However, things changed a few years later when Aин decided to pivot the company's focus. He steered Clay towards leveraging artificial intelligence to empower salespeople and marketers, helping them discover critical data and automate their go-to-market strategies. Clay's platform allows users to identify and update potential customer lists, as well as craft personalized outreach emails, making it a valuable tool for both large corporations and smaller consulting agencies. Currently, Clay serves thousands of customers, including big names like OpenAI, HubSpot, and Canva, alongside over 100 small consulting firms. These firms use Clay to assist their own clients in optimizing their go-to-market strategies. In the competitive landscape of sales technology platforms, Clay faces off against established players such as ZoomInfo, Lusha, and Apollo.io, as well as newer entrants like Unify and Common Room. Despite this competition, Clay has managed to attract significant investment. In addition to the lead investor, CapitalG, Clay's existing backers include Meritech Capital, Boldstart Ventures, Maple VC, First Round Capital, and Box Group. This latest funding round underscores Clay's growing value in the market and its potential to disrupt the sales technology space by offering innovative AI-driven solutions. Aин's strategic vision and the platform's practical benefits have clearly resonated with investors and customers alike, positioning Clay for continued growth and expansion.