AI Agent Startup Sierra Hits $100M ARR!

Hustler Words – Sierra, a San Francisco-based startup specializing in AI-powered customer service solutions for enterprises, has achieved a remarkable milestone: reaching $100 million in annual recurring revenue (ARR) in just 21 months. This rapid ascent underscores the growing adoption of AI agents across diverse industries.

The company’s co-founders, Bret Taylor, formerly co-CEO of Salesforce, and Clay Bavor, a long-time Google veteran, expressed their surprise at the accelerated growth in a recent blog post. Sierra’s client roster includes prominent tech companies like Deliveroo, Discord, Ramp, Rivian, SoFi, and Tubi, alongside established businesses such as ADT, Bissell, Vans, Cigna, and SiriusXM.

While Taylor and Bavor initially anticipated strong interest from tech companies, the adoption by more traditional businesses exceeded their expectations. Sierra’s AI agents are designed to automate various customer service tasks, including patient authentication for healthcare providers, processing returns, ordering replacement credit cards, and assisting customers with mortgage applications. This automation aims to alleviate the burden on human agents and improve overall efficiency.

Sierra operates in a competitive landscape, facing rivals like Decagon and Intercom. However, the company positions itself as the leader in the AI customer service category. Backed by a $350 million funding round led by Greenoaks Capital in September, Sierra was last valued at $10 billion. Other notable investors include Sequoia, Benchmark, ICONIQ, and Thrive Capital.

With a $100 million ARR, Sierra’s valuation currently stands at a 100x revenue multiple, a substantial figure reflecting its exceptional growth trajectory. The startup employs an outcomes-based pricing model, charging customers based on completed tasks rather than traditional subscription fees.

The partnership between Taylor and Bavor dates back to 2005 when Taylor hired Bavor at Google. Taylor, a Stanford computer science graduate, co-created Google Maps before founding FriendFeed, which was later acquired by Facebook. He then served as CTO at Facebook, contributing to the creation of the "Like" button. He subsequently founded Quip, a Google Docs competitor that Salesforce acquired for $750 million in 2016. Following his tenure as co-CEO of Salesforce, Taylor joined forces with Bavor, who had spent 18 years at Google leading products like Gmail and Google Drive, to launch Sierra.