Clutch, a marketplace for digital marketing services, has recently been acquired by the online social network Plaiced, according to co-founder Madison Long. The deal, which was finalized earlier this week, has undisclosed terms. This acquisition comes as the creator economy continues to grow rapidly, and Long believes that joining forces with Plaiced is the strongest next step for Clutch to remain competitive and expand its market share.
Clutch was founded in 2020 by Long and Simon May with the aim of connecting people to businesses in need of marketing and content creation services. In August 2022, after closing a successful $1.2 million pre-seed round led by Precursor Ventures, the company had over 200 creators on its platform and a waitlist of 3,000 individuals. Since then, Clutch has seen significant growth, with over 600 new users signing up and collaborations with more than 70 brands, including Hearst Media.
However, Clutch faced challenges along the way. Last June, the company underwent a restructuring process and had to lay off employees in order to prioritize profitability. Despite these setbacks, Clutch managed to achieve its goal of profitability this year. During this time, Simon May stepped down from her role as CTO to focus on her family, leaving Madison Long as the CEO. Long considered continuing to run the company independently but recognized the rapidly changing landscape of the content creation industry. Ultimately, she decided that finding the right partner to help Clutch grow further was the best course of action.
Long was introduced to Plaiced CEO Kaaveh Shoamanesh in May at a networking event, and discussions about an acquisition began from there. Long believed that Plaiced was the right partner for Clutch because both companies shared the same values, particularly when it came to prioritizing fair compensation for creators. Shoamanesh expressed his excitement about the deal, stating that it would allow Plaiced to expand its network and offer more monetization opportunities for creators through their existing online communities.
As a new founder going through her first exit, Long sought guidance from books, conversations with other founders who recently exited their companies, and careful consideration of the pros and cons of letting go of a company she helped build. She emphasized that nothing can fully prepare someone for their first exit and described it as one of the most challenging chapters in Clutch’s journey so far. Despite the difficulties, Long remains committed to the success of Clutch and will stay on as an advisor for at least 18 months.
Although the Clutch team is currently small, with only four members, Long is determined to ensure that their collaborations are not affected by the acquisition. She emphasized that maintaining the quality of service and relationships with creators is their top priority. Looking ahead, Long’s personal goal is to spend more time with her family and prioritize self-care, rest, and reflection.
In conclusion, the acquisition of Clutch by Plaiced marks an important milestone for both companies in the rapidly growing creator economy. By joining forces, Clutch and Plaiced aim to expand their networks and provide more monetization opportunities for creators while maintaining their commitment to fair compensation. While the journey has had its challenges, the Clutch team remains dedicated to delivering high-quality services and ensuring smooth collaborations for creators.