Andreessen Horowitz has invested $15 million in Cluely, a startup that has garnered attention for its controversial marketing tactics. The VC firm’s partner, Bryan Kim, believes that in the AI era, speed is crucial for a startup’s success, whether in marketing or product development. Cluely’s founder, Roy Lee, has generated buzz with his ‘rage-bait’ marketing approach, which involves creating controversial content that algorithms promote.
Kim’s investment decision was influenced by his observation that traditional methods of building a successful startup, such as creating a superior product, may not be sufficient in the AI era. With the emergence of generative AI, companies like OpenAI can quickly incorporate new features into their products, making it challenging for startups to maintain a competitive edge. Therefore, Kim believes that startups need to move quickly to build momentum.
Lee’s marketing strategy involves creating viral content by applying the principles of controversy on social media platforms like X and LinkedIn. Despite criticism, Cluely has managed to convert awareness into paying customers, which impressed Kim. The startup has yet to unveil its product, but Lee is confident that it will generate significant excitement upon its official launch on June 27.
Kim sees Cluely’s approach as a perfect example of his ‘momentum is the moat’ theory, which suggests that consumer-facing AI startups need to build momentum quickly to succeed. While the startup’s unorthodox marketing tactics have raised eyebrows, Kim is convinced that Cluely can figure out its product on the fly. The success of Cluely will be closely watched, as it tests the theory that speed and momentum are more important than a polished product in the AI era.
