Clarify, an AI-powered customer relationship management (CRM) software firm headquartered in Seattle, has announced it has secured US$22.5 million in total funding.

This funding round was led by USVP and Gradient, with participation from Madrona, Recall, Essence, Ascend, New Normal Fund, Fika, and other investors.

The company reported that its platform is now live and publicly accessible.

Clarify offers a new approach to CRM that automates tasks such as capturing calls, enriching contact data, creating deals, and assigning tasks.

According to Clarify, its platform is currently in use by hundreds of teams, with 70% of users reportedly returning weekly.

The company aims to expand its offerings beyond CRM to create a fully autonomous GTM stack.

No additional information on product adoption rates or specific customer feedback has been disclosed.

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🔗 Source: Clarify

🧠 Food for thought

1️⃣ The untapped CRM market suggests massive growth potential for new entrants

Despite CRM technology existing since the 1980s, market penetration remains remarkably low. Less than 1% of global businesses currently use CRM software, indicating an enormous untapped market opportunity 1.

The CRM industry has evolved through distinct phases, from basic contact management systems in the late 1980s to cloud-based solutions in the early 2000s and social CRM integration in the 2010s, yet adoption remains limited primarily to larger enterprises 2.

This adoption gap explains why Clarify can position itself as revolutionary despite entering a decades-old market. The vast majority of businesses still lack modern CRM capabilities, creating space for disruptive new approaches.

Clarify’s US$22.5 million funding reflects investor confidence in this market opportunity, following a pattern where solutions that can remove traditional barriers to CRM adoption, such as complexity, maintenance requirements, and poor user experience, can capture significant market share.

2️⃣ AI adoption in sales is already delivering measurable productivity gains

AI tools have demonstrably boosted sales productivity, with recent surveys showing a 47% increase in productivity among go-to-market professionals using AI solutions like ChatGPT 3.

Current adoption shows varied integration into workflows. For example, 20% of professionals use AI daily, while 29% use it weekly, indicating AI is moving beyond experimental phases into regular business processes 3.

AI integration in sales is expected to increase leads by 50% and reduce call times by 60%, demonstrating why companies are rushing to incorporate these technologies 4.

The global AI market’s projected growth to $391 billion by 2025 (with a 35.9% CAGR) provides context for why investors are betting on AI-first CRM solutions like Clarify rather than legacy systems with AI features added later 4.

3️⃣ CRM evolution has followed distinct technological waves, with AI representing the next frontier

The CRM landscape has evolved through clear technological waves, from database marketing in the 1980s to SaaS models pioneered by Salesforce in 1999, followed by cloud computing and social media integration in subsequent decades 5.

Each wave has addressed specific limitations. SaaS solved accessibility issues, cloud computing addressed scale, and social CRM improved customer engagement capabilities 2.

Clarify’s approach aligns with the historical pattern where major CRM innovations have come from rebuilding systems around new technological paradigms rather than incrementally improving existing platforms 6.

The current need for specialized AI applications tailored to sales teams represents a similar inflection point, with senior leaders specifically demanding AI that delivers tangible business value rather than general-purpose tools 3.

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