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Command AI Bought by Amplitude

(www.command.ai)
84 points jshchnz | 1 comments | 15 Oct 24 15:57 UTC | HN request time: 0s | source
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gkapur ◴[15 Oct 24 17:04 UTC] No.41850639[source]▶
Interestingly, according to Axios, the price was pretty limited: "Amplitude (Nasdaq: AMPL) acquired CommandAI, an SF-based software user experience startup, for $20m (net of cash). CommandAI (fka CommandBar) had raised around $23m from Insight Partners, Itai Tsiddon, Thrive Capital, and BoxGroup."

I would be curious to learn more about the rationale to sell the business as I understand the strategic value to Amplitude. Interestingly, these next-generation digital adoption platforms have generally been pretty challenged.

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sskates ◴[15 Oct 24 20:15 UTC] No.41852656[source]▶
Amplitude CEO here. To clear a few things up:

The number that was reported in term sheet / pro rata did not include any stock, which was a big part of this deal. The total consideration for CommandAI was north of $45M. We're working with them to issue a correction. Long story how the wrong number got reported- mostly too much telephone. It was also a good outcome for their investors in that they were able to return more than what was raised.

We at Amplitude approached the Command AI founders about joining Amplitude. They had a bunch of runway and good growth numbers. They were initially planning to raise another round of fundraising to continue to scale their business instead. It took some time on both sides to figure out what the win-win combination would look like.

We're honored that they decided to combine with Amplitude and are excited about what the combined products look like.

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1. dazzeloid ◴[16 Oct 24 00:21 UTC] No.41854440[source]▶
Command AI co-founder here. What I'll add to Spenser's nice comment is that there was this strange tension when we were deciding to do this between: (1) Feeling like the only right outcome for a growing startup with runway is to keep going and try to build a massive independent company, (2) Realizing that we can probably grow faster as part of Amplitude (obv with less upside capture)

Obviously if your growth is so epic and you're a top 1% company, the choice is obvious. But there are a lot of companies that are doing well outside of that group that I don't think allow themselves to consider the acquisition route. We were like that until Amplitude reached out and we got good counsel to seriously consider their offer.