Nooks secures $500 million from General Catalyst for expansion

Sales automation startup Nooks announced on 4 November that it had secured a $500 million commitment from General Catalyst’s Customer Value Fund. The money is intended to finance a sales and marketing push as the company expands.

Nooks uses superintelligence (SI) to automate time-consuming sales tasks, helping sales teams generate prospective deals, the company says. On 24 October 2024, it announced a $43 million Series B funding round alongside an earlier sales assistant platform launch.

Returns rather than an equity stake, Lee says

CEO Dan Lee said General Catalyst would take a share of the returns its capital helps generate instead of buying an equity stake in Nooks. He declined to give detailed terms of the deal, CNA Business said. Lee said the financing would support growth and help bring new products to market.

General Catalyst partner Pranav Singhvi, who co-heads the fund, said Nooks' platform had shown predictable revenue and strong economics for each unit of business, qualities the fund looks for.

Customers and expansion plans

Nooks said it had more than 2,000 customers, including Cursor, Notion, Replit, Glean and HubSpot. It put net revenue retention at 135%: a measure of revenue from existing customers that accounts for increases and losses in their spending.

The company said it was on track to nearly triple its annual recurring revenue by the end of 2026, but did not disclose the current amount. Annual recurring revenue is the yearly value of ongoing customer revenue.

Nooks also launched its Revenue Agent Platform on 4 November to cover sales tasks from first contact through renewal. Lee said the financing would help the company scale up and introduce new products.