AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration
(Reuters) -AI startup Clay's valuation more than doubled in about three months to $3.1 billion in its latest funding round, as investors continue to pour money into artificial intelligence companies.
Clay operates an AI-centered platform to automate sales and marketing operations, and counts Google and Reddit as customers.
The startup raised $100 million in the round, led by Google-parent Alphabet's independent growth fund, CapitalG. About three months ago, the company was valued at $1.5 billion in an employee tender offer.
Dealmaking activity for the first seven months of the year hit the highest since the 2021 pandemic-era peak, as investors have poured billions in AI and its applications, betting on the technology to enhance productivity and reduce costs.
Last week, when most Big Tech companies reported their earnings, AI turned out to be a bigger driving factor behind demand across internet search, digital advertising and cloud.
The funding will be used to accelerate its product development, the company said.
Clay plans to launch tools that allow clients to scan data such as sales tickets and video calls with potential customers, co-founder Kareem Amin told Reuters in an interview.
The company is also working on a "signals" offering that will provide sales representatives insights on when to message potential leads, Amin added.
Existing investors who also participated in the round included Sequoia, Meritech Capital, and First Round Capital.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Janane Venkatraman, Shinjini Ganguli and Leroy Leo)
