Introduction
Transparency of Startups - A Topic of Discussion Again in the World of Technology
Transparency of startups has once again become a topic of discussion in the world of technology. Roy Lee, who is the co-founder and CEO of Cluly, recently confessed that the revenue figures that he had shared with the public last year were not true.
Earlier, the company had claimed that they had an annual recurring revenue of $7 million, but this figure, according to Roy Lee, was not true.
His entry gave rise to various discussions about startup marketing, viral growth, etc.
Roy Lee withdraws $7 million ARR claim
Roy Lee posted on X that the $7 million ARR figure he previously reported was incorrect. In the post, he described it as the only intentionally dishonest statement he had made publicly online and issued a formal retraction.
Lee reported that the number was mentioned during a conversation with a reporter and said that he did not expect the discussion to become a published article.
However, the interview was not spontaneous. In fact this was arranged first through Cluley's public relations team, who contacted a journalist to schedule a conversation with Lee.
How the Interview Actually Happened
From the timeline, it is seen that the PR representative of Cluely contacted a reporter about an interview opportunity with Lee. This interview would have focused on the future of the company and the vision.
After agreeing to the interview, the reporter was sent Lee’s phone number. Eventually, Lee answered the call and gave his comments on the company. This includes the company’s revenue figure, which had been retracted.
Why Cluely Was Getting So Much Attention
In the summer of 2025, there was a lot of buzz about Cluely in the startup world. This is because the company had gone viral because of the controversial product concept it had come up with.
The original product gave users the ability to secretly look up answers during a video call or online interview without being detected. This is why it had become a ‘cheat on everything’ startup.
Controversial Origin Story
Another factor that contributed to the public’s interest in the company is the company’s controversial story.
In fact, Roy Lee had revealed that he had been expelled from Columbia University as he and his co-founder had created a software program that intended to help software engineers cheat in their job interviews. However, the duo had decided to change the software program into a product.
Such a controversial and courageous story had contributed to the company receiving massive online attention.
Funding and Viral Marketing Strategy
In spite of the company’s controversial story, the company had managed to attract the attention of investors.
In fact, the company had managed to raise $5.3 million in seed funding from various investors such as Abstract Ventures and Susa Ventures. Subsequently, in June 2025, the company had raised $15 million in Series A funding from Andreessen Horowitz.
Moreover, the company had also become famous due to its viral marketing strategy, which often included provocative posts and debates on the Internet.
Such a marketing strategy had contributed to the company’s ability to gain popularity and attention in a short period of time.
Lessons from the Disrupt Conference
I went to a big technology conference at the end of the year. Roy Lee was there. He talked about marketing strategies and what they can do.
When Roy Lee was speaking he did not tell us about the companys revenue figures. He said something that I found interesting. Roy Lee said that you cannot make a company successful by using marketing techniques if the product is not ready yet.
One of the things Roy Lee taught us is that startups need to be careful when they talk about their revenue numbers. Roy Lee said that startups should think carefully before they share their revenue numbers.
Cluely’s New Direction
Since then, the company has changed its focus.
Cluely has rebranded itself as an AI-powered meeting note-taking platform, abandoning the controversial concept that first put the company on the map.
This is a clear indication that the company is trying to change its direction towards a more viable and widely accepted application.
Final Thoughts
Roy Lee’s confession points to a larger problem in the startup world.
While a company’s ability to create a buzz with its marketing campaign and innovative ideas is certainly attractive, the reality is that a company needs to be transparent and trustworthy in order to succeed.
Cluely’s experience is a valuable reminder that in the tech world, a viable product is more important than a viable marketing campaign.
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