Clay Launches New Relationship Management Tool

Introducing Clay: A New Approach to Relationship Management

A recently launched startup, Clay, has secured $8 million in seed funding to develop a system focused on fostering more meaningful connections. Functioning in a manner similar to a personal CRM, Clay aims to help users stay thoughtfully engaged with their network.

How Clay Works

The application allows users to compile a directory of contacts by integrating with existing email and calendar platforms, alongside social media applications like Twitter and LinkedIn.

Clay then aggregates pertinent details for each contact, facilitating recall for future interactions. This includes professional background, recent social media activity, and a record of past communications.

Key Features and Functionality

Users can add personalized notes to each entry.
Reminders can be set to ensure consistent follow-up.
Contacts can be organized into custom groups.
A command bar, keyboard shortcuts, and home screen widgets enhance usability.

Unlike traditional address books or sales-oriented CRM systems, Clay positions itself as a dedicated “home for your people,” establishing a unique niche in the market.

The Founders and Inspiration Behind Clay

Clay was founded by entrepreneurs Matthew Achariam and Zachary Hamed, who first connected while working within the startup ecosystem.

Prior to Clay, Achariam held a product leadership role at Y Combinator-backed analytics firm, Custora. Hamed previously led product management for Goldman Sachs’ web platform, Marquee.

Hamed explains that their motivation stemmed from recognizing the pivotal role relationships play in career advancement. They sought to create a tool that specifically addressed this aspect.

Platform Integration and Data Tracking

Clay is accessible as a web, desktop, and mobile application. Initial integrations include Microsoft Outlook/Office 365, Google Calendar, Gmail/Google Mail, and Twitter, with additional services available through Zapier.

Upon setup, Clay automatically tracks meetings and connections, enriching entries with publicly available information from sources like LinkedIn and Twitter.

The system also records the context of how connections were made – whether through LinkedIn, in-person meetings, or online interactions – details often forgotten over time.

Privacy and Security Considerations

Connecting Clay to iMessage is an optional feature that allows the app to access phone numbers and communication history. However, this requires granting full disk access, a security permission that users may wish to consider carefully.

The founders emphasize their commitment to user privacy and security. Clay’s privacy policy is transparent, detailing data collection practices for each integration.

Currently, data is encrypted both in transit and at rest on Clay’s servers. A key development goal, supported by the recent funding, is to enable fully local data processing on users’ devices.

Addressing Past Concerns

Clay acknowledges past instances of privacy breaches within the “smart” address book space, such as the Sunshine Contacts incident. They aim to differentiate themselves through a user-centric approach.

Achariam highlights that previous products often prioritized monetization over user privacy, leading to unsustainable business models and ultimately, loss of trust.

Clay’s Business Model and Pricing

Clay is adopting a subscription-based model from the outset, ensuring long-term sustainability. The current pricing is $20 per month, with plans to reduce this cost and introduce a free tier in the future.

Discounted access is available for students and nonprofit organizations upon request.

Early Adoption and Use Cases

During testing, Clay found adoption across diverse sectors, including educators tracking students and parents, a congressional candidate managing constituents, and a veterinarian organizing client and pet information.

Hamed notes that they intentionally designed Clay to be versatile and applicable across various industries and disciplines.

Funding and Investor Support

Clay has raised $8 million in seed funding between 2019 and 2020, led by Forerunner Ventures, with participation from General Catalyst.

Angel investors include Shannon Brayton (former CMO at LinkedIn), Kevin Hartz (former CEO of Eventbrite), Kelvin Beachum (NFL player and investor), Lindsay Kaplan (co-founder of Chief), Zoelle Egner (former marketing lead at Airtable), Adam Evans (former CTO of RelateIQ), Charlie Songhurst (former head of corporate strategy at Microsoft), Sam Lessin (former VP of product management at Facebook), Jonah Goodhart (former CEO of Moat), Jeff Morris Jr. (Chapter One Ventures), and others.

Investor Perspective

Forerunner GP Brian O’Malley emphasized the increasing digitization of relationships and the need for tools that prioritize user well-being. He believes Clay is uniquely positioned to address this need by empowering users to own and manage their networks.