San Francisco-based Decagon, an AI-powered customer support startup, is preparing to complete its first employee tender offer, allowing more than 300 employees to sell a portion of their vested shares at the company’s latest valuation of $4.5 billion, according to TechCrunch.
The secondary share sale is being led by the same investors that backed the company’s $250 million Series D funding round announced less than two months ago. Those investors include Coatue, Index Ventures, Andreessen Horowitz (a16z), Definition Capital, Forerunner, and Ribbit Capital.
According to TechCrunch, the tender offer reflects a growing trend among fast-growing AI startups, in which companies allow employees to sell shares privately rather than waiting for an IPO or acquisition.
Decagon CEO and co-founder Jesse Zhang said: “We had the opportunity to bring together the recent investment demand and growth milestones with rewarding the team’s hard work.”
Rapid valuation growth
Decagon has not shared updated revenue figures since late 2024, when the company said its annual recurring revenue exceeded eight figures. However, its valuation has risen sharply.
The company’s current $4.5 billion valuation is three times higher than the $1.5 billion valuation it reported in June, according to the report.
What does Decagon do?
Decagon builds AI-powered conversational agents designed to act like digital concierges rather than basic chatbots. The platform helps companies handle customer questions across voice, chat, email, and messaging channels, while keeping responses personalised and consistent.
Instead of configuring rigid workflows, teams can give Decagon’s agents clear instructions that combine natural language with engineering-level control. Its customers see average deflection rates above 80%, meaning most customer requests are handled without human intervention, while still maintaining quality.
Many of Decagon’s customers are using the platform to move away from older tools. Around 53% replaced legacy systems such as IVRs, ticketing software, or CRM-based agents.
Another 33% had no AI automation at all, while 14% chose Decagon over building their own in-house solution.
The platform is already used by well-known brands including Avis Budget Group, Chime, Oura Health, and 1-800-FLOWERS.COM.
