Bret Taylor’s Sierra reaches $100M ARR in under two years

Sierra, a 21-month-old, San Francisco-based startup that builds customer support AI brokers for enterprises, introduced on Friday that it reached $100 million in annual income run price (ARR). The corporate’s fast progress suggests that companies throughout industries are embracing AI brokers.

The startup’s progress price stunned even its seasoned co-founders, former Salesforce co-CEO Bret Taylor and longtime Google alum Clay Bavor, who wrote on their weblog: “That’s a heck of so much faster than we anticipated.”

Sierra’s clients embrace tech firms like Deliveroo, Discord, Ramp, Rivian, SoFi, and Tubi, in addition to well-established companies outdoors of the tech sector, equivalent to ADT, Bissell, Vans, Cigna, and SiriusXM.

Taylor and Bavor stated they anticipated tech firms would really feel snug experimenting with AI customer support brokers, however they have been astounded that older companies additionally turned Sierra’s clients.

The corporate says it could possibly construct AI brokers that may deal with duties like authenticating sufferers for healthcare suppliers, processing returns, ordering substitute bank cards, and serving to clients apply for mortgages — primarily automating customer support work that beforehand required human brokers.

Sierra faces competitors from startups like Decagon and Intercom, however the firm claims to be the chief within the AI customer support class.

Sierra was final valued at $10 billion when it raised a $350 million spherical led by Greenoaks Capital in September. Different traders within the firm embrace Sequoia, Benchmark, ICONIQ, and Thrive Capital.

Based mostly on its $100 million ARR, Sierra is at the moment valued at a 100x income a number of, a hefty valuation regardless of its exceptionally quick progress.

The startup employs an outcomes-based pricing mannequin, charging clients for accomplished work slightly than charging flat subscription charges.

Taylor and Bavor met at Google in 2005, the place Taylor employed Bavor as an affiliate product supervisor.

A Stanford laptop science graduate, Taylor co-created Google Maps earlier than founding FriendFeed, which Fb acquired. At Fb, he served as CTO and helped create the enduring “Like” button. He later based Quip, a Google Docs competitor that Salesforce acquired for $750 million in 2016.

Taylor went on to function Salesforce co-CEO alongside Marc Benioff for over a yr. After Taylor left Salesforce in 2023, Bavor — who had spent 18 years at Google main merchandise like Gmail and Google Drive — invited him to lunch, the place they determined to launch Sierra.