Announcing Clyde’s $41MM Series B Funding
To Deliver a Comprehensive Product Lifecycle Platform for Merchants and Their Customers
I started Clyde because I knew the warranty experience was fundamentally broken for customers and retailers. In 2017, before starting Clyde, I was given the challenge of launching the go-to-market for a new consumer product. We had decided that a warranty program was critical to our strategy — I set off to make that happen. No matter how many calls I made or emails I sent to administrators and underwriters — there was no interest in (or even response to) working with a business of our scale. Then, on my way to a music festival with friends, I bought a tent and was sold on the extended warranty. I immediately lost the receipt, the only thing I had proving I bought the warranty, which I was instructed to keep and to "register" three days later. My experience launching a warranty program, to being a consumer using a warranty, was set up to fail from the start.
As an individual, I was having the same negative experiences that countless US consumers have endured. Overpriced protection plans, unnecessary registration processes, no transparency on terms and conditions, and lengthy and confusing claims experiences. I had already personally experienced the challenge of launching a program as a retailer, but the consumer experience was really what needed to be completely overhauled. That came first.
Today, I am ecstatic to announce that we've raised $41M in new funding, including $25M in Series B funding and $16M in working capital. Stepping back and reflecting on how far we've come since the start, I'm humbled by our team's progress. Seeing how quickly an industry as old as the warranty space could be transformed with new ideas and technology is a testament to the needs of modern retailers and consumers. As we announce our Series B today, it's clear that the market was not only ready for a solution like Clyde, but is ready for our next leap — to provide a comprehensive product lifecycle platform to both our merchants and their customers.
Why This Series B Unlocks Clyde's Potential
We have partnered with more than 300 brands and retailers who trust us to improve their product lifecycle programs. This expansive customer list spans a number of industries and verticals, including consumer and household electronics, scooters and e-bikes, furniture and mattresses, appliances and hardware, fitness and sporting equipment, and jewelry and watch brands. The diversity of the companies we work, by size and vertical, validates that our technology can work for any merchant. Clyde's extended warranty solution has an average attachment rate of 18%. That metric, over four-times the industry average, has provided us with credibility to expand the conversation we're having with merchants. I've always been incredibly proud of how "product first" Clyde is and today, fueled by our Series B, I'm excited to allude to the larger platform and mission we're executing on. Stay tuned.
Those conversations are now growing into understanding their products and their customers at a granular level, across a consumer's entire lifecycle. Fueled by our Series B, Clyde is investing in the expansion of our platform by building tools and functionality inspired directly by our merchants. User-inspired functionality ensures that we're solving the most pressing issues facing our merchants today, and the funding itself guarantees that we'll have the resources to deliver.
This funding round was led by Headline, with participation from Vulcan, Spark Capital, Crosslink and other leading investors.
I'm thrilled to report that our team is growing by leaps and bounds and will surpass 100 full time employees by the end of this year, with major team growth planned for 2022. We've built a reputation for providing custom and adaptable solutions to our clients and that level of care and thoughtfulness will continue as our team grows. These additional resources will help us expand into new markets and categories, including growing our international footprint.
In 2017 there was a problem in the warranty space — it was inaccessible, impossible to understand. And slow. So slow. Yesterday, Clyde re-imaged what it meant to launch, manage, and find success with a warranty program. Today, we help our partners launch impactful omnichannel lifecycle experiences, funded by the highest performing warranty programs this space has seen.