Digital marketing service platform Clutch has been purchased by Plaiced, an online social networking company, as revealed to TechCrunch by Clutch co-founder Madison Long.
This acquisition was finalized earlier in the week, though the financial details have not been disclosed.
“In the swiftly expanding creator economy, to stay ahead and capture a larger market share, we realized that acquiring would be the most impactful move forward,” Long shared with TechCrunch.
Launched in 2020 by Madison Long and Simone May, Clutch’s mission has been to facilitate connections between individuals and businesses in need of marketing and content generation services. The founders had their last discussion with the press in August 2022, following a successful $1.2 million pre-seed fundraise led by Precursor Ventures. At that juncture, Clutch boasted a network of over 200 creators and a waitlist of 3,000 individuals. Since those discussions, the platform has seen over 600 new registrations and has collaborated with upwards of 70 brands, which includes Hearst Media, according to Long.
However, Clutch faced challenges, undergoing a restructuring in June of the previous year and reducing its workforce to focus on becoming profitable—a goal it achieved within this year. During this period, May withdrew from her Chief Technology Officer position to prioritize her family, which left Long in charge as the CEO. Despite contemplating an independent operation, Long recognized the rapidly evolving content creation landscape, especially with the emergence of GenAI technologies. “The decision to sell was heavily influenced by finding a partner who could propel us to greater heights,” she remarked.
An introduction to Plaiced’s CEO, Kaaveh Shoamanesh, at a May networking event laid the groundwork for acquisition discussions. Long saw Plaiced as the ideal partner due to shared values, notably in the realm of fair compensation for creators.
Excited about the acquisition, Shoamanesh believes it will enable Plaiced to broaden its creator network and introduce more revenue-generating avenues for creators within their community networks, he conveyed to TechCrunch.
Navigating her first acquisition, Long sought insight from M&A literature, advice from peers who had recently undergone exits, and evaluated the intricacies of relinquishing a venture she had cultivated. “No amount of preparation truly equips you for your initial exit,” she admitted. “Having invested five years into Clutch, including three years of full-time endeavor, and after assembling a team and raising $2 million, this was undeniably a monumental chapter in our narrative.”
The current Clutch team, comprising four members, faces a transitional phase where some may opt to stay while others pursue different paths; Long herself is transitioning to an advisory role for a minimum of eighteen months.
Ensuring a smooth transition for the collaborations under Clutch’s umbrella remains a top priority amid these changes, Long affirmed.
Looking ahead, Long is eager to devote more time to her family and personal well-being, emphasizing the need for rest and reflection.
The article has been updated for the accurate spelling of Simone May’s name.
Compiled by Techarena.au.
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