Plaiced, an online social network, has recently acquired Clutch, a marketplace for digital marketing services, according to Madison Long, one of Clutch’s co-founders. The deal was finalized earlier this week, although the specific terms of the acquisition were not disclosed.
Long explained to TechCrunch that the decision to be acquired was driven by the rapid growth of the creator economy. In order to stay competitive and increase market share, an acquisition was seen as the most strategic move for Clutch. The company was initially founded in 2020 by Long and Simone May with the goal of connecting individuals to businesses in need of marketing and content creation services.
In August 2022, Clutch successfully closed a $1.2 million pre-seed funding round led by Precursor Ventures. At that time, the platform had over 200 creators and a waitlist of 3,000 people. Since then, the user base has grown to over 600 individuals, and Clutch has collaborated with more than 70 brands, including Hearst Media.
Despite its achievements, Clutch faced challenges along the way. Last June, the company underwent a restructuring process that involved layoffs to prioritize profitability. Eventually, the company achieved profitability this year. During this time, Simone May decided to step down from her role as CTO to focus on her family, leaving Madison Long as the CEO.
As the industry evolved, Long realized the need for the right partner to propel Clutch forward. This led her to connect with Plaiced CEO Kaaveh Shoamanesh at a networking event in early May. The shared values between Clutch and Plaiced, particularly in their commitment to fair compensation for creators, solidified the decision to move forward with the acquisition.
Kaaveh Shoamanesh expressed enthusiasm about the acquisition, noting that it will enable Plaiced to broaden its network and provide additional monetization opportunities for creators through their online communities. Long shared that she extensively researched M&A processes, sought advice from other founders, and carefully weighed the decision to sell Clutch. She acknowledged that letting go of a company she dedicated years to building was a challenging yet necessary step for its growth.
Following the acquisition, the Clutch team, currently comprising four members, will undergo some changes as some decide to continue with the company while others pursue new opportunities. Long will remain as an advisor for at least 18 months to ensure a smooth transition and maintain collaborations.
Looking ahead, Long emphasized the importance of prioritizing family time and self-care. She plans to take a break to rest, reflect, and recharge after the intense journey of building and parting with Clutch.