The Plaiced online social network has acquired the Clutch marketplace, which provides digital marketing services to consumers.
The mentioned information was published by the media, referring to the statement of the co-founder of Clutch Madison Long. It is known that the deal on the acquisition of the marketplace by the social network was completed in the current week. So far, there is no information about the terms of this business agreement.
Madison Long, during a conversation with media representatives, stated that the creator economy is currently on a trajectory of rapid development and growth. According to her, the entry of the marketplace into the ownership space of another business structure is an important decision that ensures an acceptable level of competitiveness and provides the company with the opportunity to take over market share.
Madison Long and Simon May founded Clutch in 2020. In this case, the purpose of the activity was to help people connect with businesses looking for marketing and content creation. In August 2022, Clutch completed a preliminary funding round worth $1.2 million. This round is led by Precursor Ventures. In 2022, there were more than 200 creators on the Clutch platform and another 3,000 persons on the waiting list. Since then, more than 600 people have signed up to use the specified platform. Also, as noted by Madison Long, Clutch has collaborated with more than 70 brands, including, among others, Hearst Media.
The history of the path of the company that entered the ownership structure of Plaiced, in a symbolic sense, is not an example of a path that shone with sunlight and at none of its stages was overshadowed by metaphorical black clouds of unfavorable circumstances. In June last year, Clutch carried out a restructuring. Also in 2023, the company shrank the number of employees. The corresponding actions of the marketplace were carried out as part of the implementation of efforts aimed at materializing the priority goal in the form of profitability. This year, the mentioned goal became an objective reality for the company, confirming the expediency of the measures taken in 2023.
Simon May has left the post of chief technical officer to devote more time to her family. Madison Long remained in the position of chief executive officer. Initially, she focused on plans for self-management of the company, but over time, her guidelines and assessment of prospects have changed, as a transformation began against the background of the emergence of generative artificial intelligence in the content creation industry. According to her, as part of the implementation of the intention to sell the marketplace, the decisive factor was the search for a suitable partner who could ensure the further movement of the company forward.
In May, at a networking event, Madison Long and Plaiced CEO Kaaveh Shoamanesh met, which in a certain sense became fateful in the context of the future of Clutch and formed a kind of platform for the subsequent sale of the firm. Since the mentioned month, negotiations have begun on the acquisition of the marketplace by the social network. Madison Long says that she initially perceived Plaiced as the right partner. According to her, in the relevant context, the common values of the companies have become an important factor. She also noted that in the industry in which Clutch operates, there are very few platforms that prioritize paying creators what they deserve and not compromising on this.
Kaaveh Shoamanesh is pleased with the deal to acquire the marketplace. During his conversation with media representatives, he noted that as a result of the implementation of this business agreement, Plaiced will be able to expand its network by interacting with a large number of creators. Also, according to Kaaveh Shoamanesh, the deal generates more monetization opportunities for creators using his company’s online community network.
Madison Long told reporters that lately, she has been reading more and more books about mergers and acquisitions, talking with recently exited founders, and evaluating all the arguments for and against in the context of letting Clutch. She hired more than a dozen people, raised $2 million, and at the same time went through a difficult period in the company’s history.
Currently, the Clutch team consists of only four people, and of the four, some have decided to stay while others have found other job opportunities and Madison Long will stay on as an advisor for at least 18 months. According to the CEO of the company, the number one priority is that their collaborations are not impacted due to the acquisition.
Madison Long told reporters that her next personal goal is to spend more time with her family, taking time for thinking, taking care of herself, and relaxing.
As of 2022, the creator economy was valued at over $100 billion. Also two years ago, more than 50 million people called themselves functionaries of the mentioned sphere of activity. At the same time, most of them belong to the category of amateurs, not professional creators, of whom there were about 2 million people in 2022.
Approximately 1 million creators earned money on YouTube two years ago. Another 500 thousand people received income on Instagram. Twitch has become an earning platform for about 300,000 professional creators.
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