alyce Raises $30M to Revolutionize Corporate Gifting with AI

The Evolution of Corporate Gifting and a New Approach

The realm of business-related gifts possesses a somewhat inconsistent track record. For every well-received item, such as fashionable socks, there are numerous examples of unwanted merchandise – shirts that remain unworn, uncomfortable scarves, notepads utilized by children, and unattractive mugs. Significant financial resources and considerable time are often dedicated to procuring these presents.

Alyce: An AI-Powered Solution for Personalized Gifts

A startup, Alyce, has developed a service designed to revolutionize the concept of corporate gifts, enhancing their effectiveness. The company recently announced a new funding round to facilitate continued expansion. Its success to date indicates a promising trajectory.

Alyce, based in Boston, has created an AI platform that integrates with various applications used for managing and tracking professional relationships – including sales leads, business associates, and colleagues. This platform leverages this data to provide personalized gift suggestions for individuals.

Funding and Growth

The company has secured $30 million in Series B funding, which will be allocated to platform development, user acquisition, and team expansion.

This funding round was spearheaded by General Catalyst, with participation from existing investors: Boston Seed Capital, Golden Ventures, Manifest, Morningside, and Victress Capital.

Alyce has experienced substantial growth, reporting a 300% increase year-over-year between 2019 and 2020. This growth occurs within a corporate gifting and promotional items market estimated at $24.7 billion annually by ASI Market Research.

The Impact of Remote Work

Current clients of Alyce include prominent companies such as Adobe’s Marketo, G2, Lenovo, Wex, Invision, DialPad, GrubHub, and 6Sense.

The shift to remote work has heightened the relevance of Alyce’s services. The increased reliance on digital communication, coupled with potential burnout, has underscored the need for more meaningful engagement.

“Last year saw a surge in spam, leading to increased unsubscribe rates,” stated Greg Segall, founder and CEO of Alyce. “Prospects permanently opting out highlights a desire for more purposeful and relatable interactions from both brands and customers.”

How Alyce's Personalization Works

Alyce’s approach centers on AI-driven personalization.

The system connects with commonly used communication tools – including Marketo, Salesforce, Vidyard, and Google applications – to analyze data and gain insights into the preferences of gift recipients.

Based on this information, Alyce generates a curated list of items from a catalog of approximately 10,000 products, including traditional corporate swag. Instead of directly sending a gift, the service provides a gift code allowing the recipient to select their preferred item from the personalized list.

Alyce partners with third-party logistics providers for gift fulfillment, and its pricing is based on usage and the level of personalization desired.

The Question of Personalization

Some may argue that this process appears impersonal, as the gift giver is not directly involved in the selection or delivery. The selection is instead driven by artificial intelligence.

However, it offers a solution to the challenge of finding appropriate gifts, particularly when limited knowledge of the recipient exists, while still facilitating a thoughtful gesture.

The data-driven gift lists, based on observations of the recipient, do incorporate a degree of personalization, even if processed through algorithms.

Beyond Gifts: Potential Applications

The primary goal of these gifts is to express appreciation for a business relationship or to encourage continued patronage – not necessarily to apologize for personal offenses.

However, the model could potentially be extended to other applications, such as direct mail marketing campaigns or even resolving interpersonal conflicts.

General Catalyst’s Vision

General Catalyst’s investment reflects its broader interest in the gifting market and the potential for scalability.

“General Catalyst is proud to lead Alyce’s latest funding round, as the company has redefined the gifting landscape through technology and impact,” said Larry Bohn, Managing Director at General Catalyst. “The ability to deliver gifts and experiences that are mutually satisfying for both the giver and recipient is exceptionally valuable.”