Clay Offers Liquidity to Employees in $1.5 Billion Tender Backed by Sequoia

NEW YORK, May 9, 2025 — Clay, the sales automation startup led by co-founder and CEO Kareem Amin, is offering employees and alumni a chance to sell equity in a $1.5 billion tender offer backed by Sequoia Capital. The move, which allows workers with at least one year of tenure to cash out some of their shares, comes after a period of sharp growth for the company.

The tender offer will enable current and former employees to sell equity roughly equivalent to one year’s salary. Sequoia, which first invested in Clay in its 2019 Series A, is purchasing up to $20 million in shares. The offer follows the company’s $1.25 billion Series B valuation in January and marks another milestone in its rise since product adoption accelerated in 2022.

Amin said the decision reflects a broader principle that the company’s success should benefit more than just founders and investors. “Most startups don’t work out,” Amin told TechCrunch. “But Clay is working out, and so we wanted to make sure that they have the option of liquidity.”

Alfred Lin, Sequoia partner and Clay board member, praised Amin and co-founder Varun Anand for their inclusive approach. “Clay is a very creative place,” Lin said. “What they’re doing here — letting everyone take part in the upside — is rare.”

Clay, which employs over 150 people, uses artificial intelligence to help sales and marketing teams identify relevant data and automate go-to-market efforts. Its customer base includes enterprise clients like OpenAI, HubSpot and Canva, alongside a network of over 100 consulting agencies.

Earlier this year, Clay also opened a $1 million community investment round, inviting individual users to invest at the same valuation offered to institutional backers. The initiative was aimed at deepening the company's connection with its user base and providing another path for supporters to share in its growth.

Amin emphasized that both the employee tender and community round were designed to show that Clay is “a collective effort” — and that financial gains shouldn’t concentrate in the hands of a few. Neither Amin nor Anand plans to sell shares in the offer.

While Sequoia stands ready to increase its stake, Lin believes the firm may not reach the $20 million buyback target. “There is probably going to be less than $20 million in demand, which is sad for Sequoia because we’d like to buy more,” he said.

Amin, however, is optimistic that the initiative will set a precedent. He hopes to make employee tender offers an annual event as Clay continues to scale. “This shouldn’t be an exception,” he said. “It should be a standard for companies that are truly growing.”

Clay’s offer underscores a quiet shift in how startup success is shared — not only among founders and funds, but among those who build the company day by day.

Clay is working out, and so we wanted to make sure that they have the option of liquidity.