AI Customer Support Startup Decagon Valued at $4.5 Billion
Jesse Zhang and Ashwin Sreenivas founded Decagon in 2023 to help businesses with their customer support needs.
Decagon AI Inc., a customer support startup, has raised $250 million in a new round of funding that triples its valuation to $4.5 billion, the latest sign of feverish investor demand for artificial intelligence services.
The financing, which is set to be announced Wednesday, was led by Coatue Management and Index Ventures, with participation from Chemistry VC, Definition Capital and Starwood Capital Group. Existing investors including Andreessen Horowitz, Accel and Bain Capital Ventures also joined the round. The valuation includes the money raised.
Founded in 2023, Decagon is part of a growing crop of startups betting that advances in AI chatbots and voice products can fundamentally change how businesses handle requests from customers. The startup said it has added more than 100 corporate clients last year, including Avis Budget Group Inc. and Deutsche Telekom AG. Firms use Decagon’s AI agents to help customers track orders, issue returns and book travel, among other tasks.
Decagon Chief Executive Officer Jesse Zhang and Ashwin Sreenivas founded the startup after meeting at a Utah retreat hosted by venture capital firm Andreessen Horowitz. Both had founded and sold companies before, and were deciding what to work on next. During that process, they quizzed other companies about what part of their operations could be helped most by AI.