Plaiced, a digital marketing startup, has acquired Clutch, a company backed by Precursor Ventures
Madison Long, Clutch’s co-founder, informed TechCrunch that the online social network Plaiced has acquired Clutch, a marketplace for digital marketing services.
The transaction was finalized earlier this week on undisclosed terms.
Long informed TechCrunch, “We were aware that an acquisition would be the most effective course of action to maintain our competitive edge and truly capture market share.” The creator economy is expanding at a rapid pace.
In 2020, Long and Simone May established Clutch to connect individuals and businesses that require marketing and content creation services. The last time we communicated with the partnership was in August 2022, following the completion of a $1.2 million pre-seed round led by Precursor Ventures.
At that time, the platform had over 200 creators and a 3,000-person waitlist. The company has collaborated with over 70 brands, including Hearst Media, and more than 600 individuals have registered to use Clutch since that time, Long stated.
However, the travels were not without their inconveniences. Clutch implemented a restructuring initiative in June of last year and implemented reductions to prioritize profitability, which it ultimately achieved this year.
May was relieved of her CTO duties during that period to more time for her family, which resulted in Long serving as CEO.
Long expressed her intention to continue operating the company independently; however, the content creation industry was undergoing rapid transformation, particularly in light of the involvement of GenAI.
“Finding the appropriate partner who could propel us forward was the determining factor in our decision to sell,” she stated.
At a networking event, she was introduced to Plaiced CEO Kaaveh Shoamanesh in early May. Subsequently, discussions regarding an acquisition ensued. She believed that Plaias was the appropriate collaborator because she thought it and Clutch aligned with their values.
She stated that only a handful of platforms in our industry prioritize the payment of creators at the appropriate rate and do not compromise on this.
Shoamanesh expressed his enthusiasm for the agreement, asserting that it will enable Plaiced to broaden its network by collaborating with additional creators.
In addition, it provides creators with additional monetization opportunities by capitalizing on our current network of online communities, he informed T, TechCrunch.
Long, a new founder, found herself reading as many books as she could about M&A, conversing with founders who had recently exited, and evaluating the advantages and disadvantages of allowing a company she had assisted in establishing to fail. She stated, “Nothing can fully prepare you for your first exit.”
“I had been employed on Clutch for five years, three of which were full-time.” This was undoubtedly one of the most challenging segments of our company’s history, even to hiring a dozen individuals and raising $2 raising.
The Clutch team is currently comprised of only four individuals. While some have elected to remain, others have pursued alternative employment opportunities. Long will continue to serve as an advisor for a minimum of 18 months.
“It is our foremost concern that the acquisition does not disrupt their collaborations,” she stated.
Long declares that her subsequent objective is to allocate additional time to her family and “permit myself to rest, reflect, and care for myself.”
This article was updated to reflect the correct spelling of May’s name.