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Decagon raises $35 million for powered customer service



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By Anna Tong

SAN FRANCISCO, June 18 (Reuters) - -Decagon, a startup that sells artificial intelligence-powered customer support solutions, said on Tuesday it had raised $35 million in Series A and seed funding. Accel led the series A round with participation from Andreessen Horowitz.

Decagon uses generative AI to replace or augment a company's customer support workforce.

Generative AI, which came to prominence when Microsoft MSFT.O-backed OpenAI launched the viral ChatGPT chatbot in late 2022, is seen as a game-changer for the customer-service industry, as the technology excels at imitating human communication and providing personalized interactions.

The funding round puts Decagon in competition with other well-capitalized customer support AI startups like Forethought, which has raised over $90 million from New Enterprise Associates and other venture capital funds.

Accel partner Ivan Zhou told Reuters that Decagon's product is differentiated because in addition to powering a customer-support chatbot, it also functions as a company's internal customer support liaison and provides services like creating software bug reports, analyzing customer emails to suggest product improvements or writing internal documentation.



Reporting by Anna Tong in San Francisco; Editing by Matthew Lewis

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