Decagon completes first tender offer at $4.5B valuation
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Decagon, an AI-powered customer support startup, is set to announce the completion of its first tender offer, allowing its more than 300 employees to sell a portion of their vested shares at the company’s latest valuation of $4.5 billion. The less-than-three-year-old company’s employee secondary is being led by the same investors that backed its $250 million Series D less than two months ago, including Coatue, Index, a16z, Definition, Forerunner, and Ribbit. As competition for AI talent is intensifying, fast-growing, young startups are increasingly finding that one of the most effective ways to attract and retain high-caliber employees is to allow them to convert some of their equity into cash through these types of transactions. Other AI startups that have recently held employee tender offers include ElevenLabs, Linear, and Clay, which conducted two in a nine-month period. These startups can offer employee liquidity largely because investors are eager to increase their ownership in such rapidly growing companies. “We had the opportunity to bring together the recent investment demand and growth milestones with rewarding the team’s hard work,” Jesse Zhang, Decagon CEO and co-founder, told TechCrunch. While Decagon has not disclosed its revenue figures since late 2024 — when its annual recurring revenue (ARR) surpassed eight figures — its rapidly climbing valuation suggests the company’s growth remains on a steep upward trajectory. The startup’s current $4.5 billion valuation is a threefold increase from the $1.5 billion it announced in June. Techcrunch event Disrupt 2026: The tech ecosystem, all in one room Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400. Save up to $300 or 30% to TechCrunch Founder Summit 1,000+ founders and investors come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediatelyOffer ends March 13. San Francisco, CA | October 13-15, 2026 REGISTER NOW Decagon builds AI “concierge” agents for large companies that autonomously resolve customer inquiries using chat, email, and voice mode. The startups’s more than 100 large customers include Avis Budget Group, 1-800-Flowers, Quince, Oura Health, and Away Travel. Although many other companies, including Sierra, Intercom, and Parloa, are also developing AI agents to automate the work traditionally handled by human customer support representatives, the market opportunity is massive. Gartner estimates there are 17 million contact center agents worldwide, a global workforce these companies are now looking to automate. Topics AI, customer support, Decagon, liquidity, Secondary Sale, Startups Marina Temkin Reporter, Venture Marina Temkin is a venture capital and startups reporter at TechCrunch. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation. You can contact or verify outreach from Marina by emailing marina.temkin@techcrunch.com or via encrypted message at +1 347-683-3909 on Signal.
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