San Francisco-based startup Sierra, which develops customer service AI agents for enterprise clients, has achieved a $100 million annual revenue run rate (ARR) within 21 months of its founding. The milestone was announced Friday by the company, co-founded by former Salesforce co-CEO Bret Taylor and long-time Google executive Clay Bavor. Taylor and Bavor indicated the growth rate surpassed their initial expectations, stating on their company blog that it was "a heck of a lot quicker than we expected."
Sierra's client portfolio includes technology firms such as Deliveroo, Discord, Ramp, Rivian, SoFi, and Tubi. Beyond the tech sector, the company has secured contracts with established businesses like ADT, Bissell, Vans, Cigna, and SiriusXM. The founders noted a surprise in the adoption rate among older, non-tech businesses, which exceeded their initial projections that tech companies would be the primary early adopters of AI-driven customer service solutions.
The AI agents developed by Sierra are designed to automate various customer service tasks that previously required human intervention. These capabilities include authenticating patients for healthcare providers, processing product returns, facilitating the ordering of replacement credit cards, and assisting customers with mortgage applications, according to the company's statements. This automation aims to streamline operational processes for its diverse customer base.
Operating in a competitive landscape, Sierra faces rival companies such as Decagon and Intercom, though it asserts a leadership position within the AI customer service category. The startup was last valued at $10 billion following a $350 million funding round in September, led by Greenoaks Capital, according to TechCrunch. Other investors in the company include Sequoia, Benchmark, ICONIQ, and Thrive Capital. Based on its recent ARR, the company's valuation represents approximately a 100x revenue multiple. Sierra employs an outcomes-based pricing model, which charges clients for completed tasks rather than relying on flat subscription fees.
Bret Taylor's professional history includes co-creating Google Maps, founding FriendFeed (acquired by Facebook), serving as Facebook's CTO where he contributed to the "Like" button, and later founding Quip (acquired by Salesforce), where he eventually became co-CEO. Clay Bavor spent 18 years at Google, leading product development for services such as Gmail and Google Drive. The two executives initiated Sierra in 2023, pooling their extensive experience in enterprise software and consumer technology.
