Nooks, an AI sales automation startup, has secured a $500 million commitment from General Catalyst’s Customer Value Fund (CVF) to support its sales and marketing expansion.
The funding will help the company scale its business and launch new products as it looks to transform sales operations with artificial intelligence.
Unlike traditional venture capital investments that involve buying equity in a company, General Catalyst’s commitment is structured around sharing returns generated with the capital. Nooks CEO Dan Lee did not disclose the specific terms of the agreement.
Nooks Bets on AI to Transform Sales
Nooks believes sales will be the next major profession reshaped by AI, following changes in areas such as software development, legal services and customer support.
The company plans to use the funding to accelerate growth and bring new products to market. CEO Dan Lee said the company believes substantial capital is needed to transform an industry and support both aggressive expansion and product development.
Nooks said it is on track to nearly triple its annual recurring revenue (ARR) by the end of the year, although it did not disclose its current revenue. The company has more than 2,000 customers, including Cursor, Notion, Replit, Glean and HubSpot. It also reported net revenue retention of 135%.
Launches Revenue Agent Platform
Nooks formally launched its Revenue Agent Platform on Wednesday. The platform is designed to support sales activities across the customer lifecycle from initial contact to renewal.
The company aims to use AI agents to automate sales tasks and help teams improve efficiency. General Catalyst said Nooks has demonstrated a predictable revenue engine and strong unit economics, citing its early business traction.
Pranav Singhvi, partner and co-head of General Catalyst’s Customer Value Fund, said the company’s performance stood out to the fund.
Funding to Support Growth
The $500 million commitment will provide Nooks with capital to expand its sales and marketing operations, grow its customer base and introduce additional AI-powered products.
The investment reflects growing interest in AI applications that automate business functions beyond software development and customer support. Nooks is positioning its platform to help sales teams manage more of their work through AI agents.
