Controversial AI Startup Cluely Raises $15M from Andreessen Horowitz, Sparking Debate on Ethics and Marketing in Tech

Cluely, a startup that helps 'cheat on everything', raises $15M from a16z | TechCrunch

Cluely, a startup that claims to help users "cheat" on job interviews, exams, and sales calls, has raised a $15 million Series A led by Andreessen Horowitz, the company announced on Friday with a video posted on X. Two investors who were not part of the deal tell TechCrunch they believe Cluely's post-money valuation is around $120 million. Andreessen Horowitz declined to comment on that figure. Lee didn't respond to a request for comment. Cluely's new funding comes roughly two months after it raised $5.3 million in seed funding co-led by Abstract Ventures and Susa Ventures. The startup was co-founded earlier this year by 21-year-old "Roy" Lee and Neel Shanmugam, who were suspended from Columbia University for developing an undetectable AI-powered tool called "Interview Coder" to help engineers cheat on technical interviews. Cluely is profitable, according to Lee's multiple posts on X and podcast appearances. Lee's provocative social media presence and highly produced controversial videos have helped to draw attention and create brand awareness for Cluely. Earlier this week, Cluely was hoping to throw a large party following Y Combinator's AI Startup School, a two-day event. But the police shut down the festivities after around 2,000 people tried to enter the venue, Lee told TechCrunch.

Why a16z VC believes that Cluely, the 'cheat on everything' startup, is the new blueprint for AI startups | TechCrunch

When Cluely, a startup claiming to be building a product that helps people "cheat" on everything, announced that it raised a $15 million Series A financing from Andreessen Horowitz, some people on X criticized the VC firm for backing the controversial company. After all, Cluely isn't just offering a product that may have questionable uses, but the startup has become famous for using what many people call rage-bait marketing. But Cluely's ability to grab attention is precisely what attracted a16z to the startup. Even before meeting Cluely's founder Roy Lee, Andreessen Horowitz's partner Bryan Kim thought that startups need new marketing tactics in the AI era. Kim, like many investors, previously thought that building a superb "artisan" product with highly desired features was the key to a startup's lasting success, he explained on the latest a16z podcast episode. But shortly after the emergence of GenAI, he noticed that offering an exceptional product might not be enough. "If you craft this thing and OpenAI or someone builds a new model to include that part in their product, you're done," Kim said. "So, it couldn't become this highly thoughtful, slow-build product. It needed to be something where founders moved extremely quickly." That realization has led Kim to believe that speed, whether in marketing or product building, is paramount to creating a successful startup. Earlier this month, Kim published a post explaining his theory of why, for consumer-facing AI startups, "momentum is the moat." When Kim met Lee and saw that Cluely had been able to convert awareness into paying customers, he instantly knew that he had discovered a founder he had theorized about. "It's been so hard to pierce through the noise of everything AI, especially in consumer, and to do that consistently is actually near impossible," Kim said. How does Lee explain why his polarizing marketing approach has generated so much buzz? "Most people don't know how to make viral content," Lee said on the podcast. "Everyone on X is trying to [sound] like the most intellectual, thoughtful person. But this just lacks viral sense." Lee, instead, had studied why some posts on TikTok and Instagram blow up. "Algorithms promote the most controversial things," he said. "I'm just literally applying the same principles of controversy on X and LinkedIn." What many people don't know, Lee said, is that Cluely barely had a functioning product when the startup launched in April with its slickly produced video of Lee using its hidden AI to a lie to a woman about his age and knowledge of art while on a date. Despite having some semblance of a product, the startup has yet to unveil the solution it has been hyping. "The internet is up in storm saying, 'Where's the product?'" Lee said. "We're earlier than the latest YC batch of companies. Yet, we're generating more views than every single one of them." Lee is convinced that once the product launches, it will generate even more excitement than if Cluely introduced it without "marketing" the company for the last two months. (The official launch is set for Friday, June 27, he posted on X.) Kim sees Cluely's approach as a perfect embodiment of his "momentum as a moat" theory. Since time is of the essence in AI, the a16z partner is convinced that Cluely can figure out its product on the fly. "What's important is to try to build a plane as it's falling down the cliff," Kim said.

Andreessen Horowitz Backs AI Startup With Slogan 'Cheat at Everything'

Andreessen Horowitz led a $15 million funding round for an artificial intelligence startup called Cluely Inc., famous on social platforms like X for controversial viral marketing stunts and the slogan "cheat on everything." The startup was co-founded by 21-year-old Roy Lee, who was booted from Columbia University earlier this year for creating a tool called Interview Coder that helped technical job candidates cheat on interviews using AI. At the time, he wrote on LinkedIn, "I'm completely kicked out from school. LOL!"

Andreessen Horowitz Backs AI Startup Whose Motto Is 'Cheat at Everything'

A new company with VC funding promises to help you fake your way through life. By now, it's well established that one of AI's biggest accomplishments is to help Americans cheat at life. Students are using it to cheat on their homework, teachers are using it to cheat at grading homework, sad and horny men are using it to cheat themselves out of having a girlfriend, actors are using it to cheat at ethnic accents, and some lawyers are even using it to cheat on legal filings. Given all the cheating that's been happening, it just makes sense that a company would come along that fully leans into AI's primary function, which is to help our country slack off big time while pretending to work really hard. I guess it also makes sense that Silicon Valley's most craven money men would think this was a great idea and proceed to throw copious amounts of cash at it. On Friday, mega venture capital firm Andreessen Horowitz announced investment in a startup called Cluely Inc., a company whose motto is "Cheat at Everything." Cluely sells what it refers to as a "discrete" desktop app that it claims can help people pretend (in meetings or during phone calls) like they came up with something smart to say when, in actuality, it was generated by an algorithm. Bloomberg reports that the VC's investment was part of a $15 million funding round for the up-and-coming company. "We want to cheat on everything," Cluely's website boasts. "Yep, you heard that right. Sales calls. Meetings. Negotiations. If there's a faster way to win â€" we'll take it." It continues: "We built Cluely so you never have to think alone again. It sees your screen. Hears your audio. Feeds you answers in real time. While others guess â€" you're already right." On the one hand, it's almost refreshing to see a company that isn't pretending to make the world a better place, and is instead content to embrace the spirit of chaotic, money-crazed technocracy that currently dominates our culture. On the other hand, I can't think of a faster way to intensively stupidify the human population than for people to start using this app. Cluely has multiple subscription tiers, including a free one (which offers users "5 pro responses a day") and a paid one (which is $20 and gives you unlimited "pro responses"). Then there's an "enterprise" tier, whereâ€"if you want to train an entire team of slackers and thus build a workforce whose superpower is not doing their jobâ€"you can shell out some undisclosed amount of money to establish a custom relationship with them. The whole thing vaguely reeks of a runaway frat house joke, which is appropriate since Cluely's co-founder, Roy Lee, is a 21-year-old who was previously kicked out of Columbia University after he created an AI tool that helped him cheat his way through Amazon's job interview process. Apparently, Andreessen Horowitz loves Cluely. "We’re excited to announce our investment in Cluely, the AI-powered desktop assistant that delivers real-time support during everyday moments â€" whether meetings, customer support calls, project brainstorming sessions, or collaborative tasks," the company said in its blog post. "Cluely’s AI-powered assistant operates discreetly on users’ desktops, intelligently interpreting live audio and on-screen context to deliver proactive insights. This lightweight tool has quickly become important in high-stakes professional settings."

Horowitz backs AI startup with slogan 'cheat at everything'

Andreessen Horowitz led a $15 million funding round for an artificial intelligence startup called Cluely Inc, famous on social platforms like X for controversial viral marketing stunts and the slogan "cheat on everything". The startup was cofounded by 21-year-old Roy Lee, who was booted from Columbia University earlier this year for creating a tool called Interview Coder that helped technical job candidates cheat on interviews using AI. At the time, he wrote on LinkedIn, "I'm completely kicked out from school. LOL!" More recently, Cluely, which is working on AI transcription and other services, has posted a string of provocative updates and sleek videos. For example, the company promised to pay for dating apps for its employees, said it was hiring 50 interns, made jokes about hiring strippers, and produced a video starring Lee himself using AI to coach him through a date with an older woman. Earlier this month, it threw a startup party that was broken up by the police before it started, according to TechCrunch.

'Cheat On Everything': Viral AI Startup Cluely Lands $15M From Andreessen Horowitz After Its CEO Was Suspended From Columbia

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Cluely, the controversial AI startup originally built to help users "cheat on everything," has raised $15 million in a new funding round led by venture capital powerhouse Andreessen Horowitz, co-founder Chungin "Roy" Lee announced on X on June 20. The San Francisco-based company was co-founded by 21-year-old Lee, who rose to notoriety earlier this year after being suspended from Columbia University for launching an early version of the software, TechCrunch says. Cluely's other co-founder, Neel Shanmugam, also 21 and a former Columbia student, serves as the company's chief operating officer. Like Lee, Shanmugam faced disciplinary action at Columbia related to the AI tool. According to TechCrunch, both founders have since dropped out. Don't Miss: GoSun's breakthrough rooftop EV charger already has 2,000+ units reserved -- become an investor in this $41.3M clean energy brand today. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Originally called "Interview Coder," the tool helped software engineers cheat on technical job interviews by providing real-time, AI-generated answers while the interview was in progress, TechCrunch says. Although Cluely has since scrubbed explicit references to cheating from its website, Business Insider reports that the platform still promotes itself as an "undetectable" AI assistant capable of viewing the user's screen and feeding answers in real-time during high-stakes conversations like interviews, exams, and sales calls. Pre-IPO Offer: Get A Piece Of A Nearly $5T Global Opportunity By Joining BOXABL As An Early Shareholder At Just $0.80/Share Massive Demand & Disruptive Potential - Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market. Revolutionary Manufacturing Approach - Inspired by Henry Ford's assembly line, Boxabl's foldable tiny homes are designed for high-efficiency production, making homeownership more accessible. Affordable Investment Opportunity - With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth. Share Price: $0.80 Min. Investment: $1,000 Valuation: $3.5B Click Here To Invest For Just $0.80/Share ($1000 Min)How a Columbia Suspension Became a Springboard for Virality According to TechCrunch, Lee's suspension from Columbia accelerated his momentum. His viral online presence, often driven by controversial videos and stunts, has helped Cluely break through the noise in a crowded AI market. In April, Cluely released a video in which Lee used the software to impress a woman on a date by pretending to know about art, wealth, and wine. The comedic tone turned heads across social media, but not everyone was amused, TechCrunch says. Earlier this week, the startup attempted to throw a massive after-party following Y Combinator's AI Startup School. According to TechCrunch, police intervened after 2,000 people flooded the venue and stopped the party. Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. 'Whatever It Takes': The Growth Plan Backed by Silicon Valley's Elite Lee told Business Insider the company's top priority is achieving 1 billion total views across all social platforms. "We'll do pretty much whatever it takes to do that," he said. That ambition is reflected in the company's new hiring strategy. Cluely announced on LinkedIn that it will bring on 50 "growth interns" who will each be required to post four TikToks per day promoting the brand. Andreessen Horowitz partner Bryan Kim told Business Insider that Lee is a "founder with the boldness to rethink what's possible," which highlights Andreessen Horowitz's support for Lee's unconventional vision. "We backed Roy early because he brings a rare mix of vision and fearlessness," Kim said. Cluely's Future Includes Profitability, Pushback, and Potential Cluely's $15 million Series A round follows a previous $5.3 million seed investment co-led by Abstract Ventures and Susa Ventures. Two unnamed investors told TechCrunch they believe the startup's current post-money valuation is approximately $120 million, although neither the company nor Andreessen Horowitz confirmed that figure. According to multiple posts from Lee on X and podcast appearances, Cluely is already profitable, TechCrunch says. Lee's provocative social media presence, including highly produced and often controversial videos, has played a key role in building brand awareness and driving public attention to Cluely. While Cluely's rapid rise has drawn praise for its bold marketing and attention-grabbing tactics, some reactions have been more critical. One of the company's launch videos was compared by viewers to the dystopian themes of "Black Mirror," showcasing a broader tension between innovation and ethical boundaries in emerging AI tools, TechCrunch reports. See Next: $100k in assets? Maximize your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey - no cost, no obligation. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Image: Shutterstock Market News and Data brought to you by Benzinga APIs