Sierra Raises $350 Million in Funding Round, Valuing AI Startup at $10 Billion
Sierra Secures Significant Investment, Signaling Strong Market Confidence
Investors are expressing strong optimism regarding Sierra, an AI agent startup co-founded by former Salesforce co-CEO Bret Taylor. On Thursday, the company announced it has successfully completed a funding round, securing $350 million. This investment was led by Greenoaks Capital and enhances the startup’s valuation to an impressive $10 billion, as confirmed in a blog post from the company that followed an initial report by Axios.
About Sierra: Revolutionizing Customer Service AI
Established in early 2024 by Taylor and seasoned Google veteran Clay Bavor, Sierra focuses on creating AI-driven customer service agents for enterprises. In just 18 months since its inception, the company claims to have attracted hundreds of clients, including notable names such as SoFi, Ramp, and Brex.
To date, Sierra has acquired a total of $635 million in funding. This includes a previous round of $110 million raised in February 2022, led by Sequoia and Benchmark, and a $175 million round in October 2022, also spearheaded by Greenoaks. Other notable investors contributing to Sierra’s journey include ICONIQ and Thrive Capital.
Founders’ Background: A Legacy in Tech Innovation
Bret Taylor and Clay Bavor bring extensive experience in customer service technology to Sierra. Taylor has nearly a decade at Salesforce under his belt and previously founded Quip, which Salesforce acquired for $750 million in 2016. Bavor managed key consumer products like Gmail and Google Drive at Google, showcasing their combined expertise in the tech industry.
Taylor and Bavor first crossed paths at Google, where Taylor played a significant role in launching Google Maps. Later, he served as the Chief Technology Officer at Facebook before overseeing Twitter’s board during Elon Musk’s acquisition.
APX Program: Empowering New Talent in AI
Earlier this week, Taylor unveiled the launch of Sierra’s APX program for its second year. This initiative offers recent technical graduates an unparalleled opportunity similar to a prestigious program that both Taylor and Bavor participated in two decades ago at Google.
As organizations increasingly evaluate the potential of AI technologies, the APX program aims to attract computer science graduates, granting them hands-on experience in agent engineering and product management. Taylor emphasized the positions will provide "an irresponsible amount of responsibility," allowing new hires to play critical roles in multiple product launches within their inaugural year, thus fostering a culture of innovation and entrepreneurship.
Conclusion
As Sierra continues to grow and attract substantial investment, the implications for the AI-driven customer service industry are profound. With a robust funding strategy and an emphasis on nurturing new talent, Sierra positions itself as a leader in leveraging artificial intelligence to transform customer interactions in various enterprises.
