AI Startup Cluely, Valued at $120 Million, Faces Scrutiny Over Out-of-Home Campaign and Marketing Funnel

San Francisco, CA – Cluely, an artificial intelligence startup known for its controversial "undetectable AI assistant," has recently drawn attention following significant venture capital investment and public questioning of its marketing strategies. The company, which provides real-time, hidden AI assistance for tasks such as virtual meetings and sales calls, secured a $15 million Series A funding round in June 2025, pushing its valuation to an estimated $120 million. This latest investment, led by Andreessen Horowitz (a16z), followed a $5.3 million seed round just two months prior.

Cluely's origins trace back to its co-founder, Chungin "Roy" Lee, who developed an earlier version called "Interview Coder" to assist engineers in technical interviews. This project led to Lee's suspension from Columbia University, an event the company has since incorporated into its unconventional brand narrative. The AI tool operates as a "translucent overlay," designed to provide answers and information without detection during live interactions.

Despite its substantial financial backing, the company's marketing approach has prompted discussion. Rachel ten Brink, a prominent figure in the marketing industry, recently commented on Cluely's Out-Of-Home (OOH) advertising efforts. She stated in a social media post, > "Ok- so you blow a few million $ on an an OOH campaign, it’s breakthrough (though I asked a few people and they had no clue or desire to search @cluely) - then what? What’s the rest of your funnel?" Her observation highlights a potential disconnect between large-scale traditional advertising and the company's self-proclaimed "distribution-first" and "virality as a moat" strategy, which typically leverages provocative online content.

Cluely has openly embraced the controversy surrounding its "cheat on everything" positioning, using it as a core element of its brand identity and a driver for viral engagement. CEO Roy Lee has emphasized that user data from extensive online reach guides product development, rather than traditional market research. The company has reported rapid growth in its Annual Recurring Revenue (ARR), claiming a significant increase from $1 million to over $7 million in a short period.

The startup's bold stance continues to fuel debate regarding the ethical implications of AI tools designed to provide an unfair advantage. However, Cluely's founders maintain that their approach represents a shift in modern corporate culture and professionalism, where authenticity and viral content supersede conventional marketing and business norms.