When Cluely, a startup promising to help people “cheat” on various aspects of life, announced it had secured a $15 million Series A funding round from Andreessen Horowitz, it faced criticism. Critics questioned the judgment of the venture capital firm in backing a company known for its controversial approach to marketing, often described as rage-bait.
However, it is precisely this talent for capturing attention that attracted Andreessen Horowitz (a16z) to Cluely. Partner Bryan Kim recognized the urgent need for innovative marketing strategies in the current AI landscape.
Traditionally, many investors, including Kim, believed that creating a top-tier product with sought-after features would guarantee a startup’s success. On a recent podcast, he explained how the advent of generative AI has reshaped this perspective.
Kim pointed out that a superior product might not suffice; competitors like OpenAI might incorporate similar features, rendering the initial product obsolete. The stakes are high, and building a product now requires speed and agility from founders.
Kim’s observations led him to emphasize that for consumer-facing AI startups, “momentum is the moat.” Cluely’s ability to transform awareness into a customer base confirmed to him that he had found a founder, Roy Lee, who exemplified this approach.
Lee’s unique, polarizing marketing strategy has managed to cut through the noise of the crowded AI space. While many struggle to create viral content, Lee has embraced the unpredictable nature of algorithms that favor controversy.
His initial marketing campaign, which preceded the actual product launch, has generated significant buzz, despite the fact that Cluely’s final product remains under wraps. Lee believes that this buildup will make the product’s eventual release even more impactful.
Ultimately, Kim sees Cluely’s approach as an embodiment of the need for rapid iteration in today’s fast-paced technological environment. As the official launch date approaches, the industry waits to see whether Cluely’s strategy will lead to success or failure.