
Clario, a Menlo Park, California-based provider of a platform that optimizes ROT (redundant, obsolete, and insignificant files) problems in enterprise data, has raised $6 million in a Seed funding round led by Preface Ventures.
The round also saw participation from Foster Ventures, Golden Sparrow, High Sage Ventures, Moment Ventures, Mentors Fund, Page One Ventures, Rain Capital, Ridge Ventures, and Transform VC, as well as angel investors Michael Callahan and Baris Aksoy.
The company plans to use the funds to expand its operations and continue developing its products.
Around 78% of all enterprise data is unstructured, and industry estimates suggest that more than one-third of it is low-quality or useless due to duplication, outdated information, and irrelevant files. Many companies are investing heavily in AI but are held back by messy data, including old documents and legacy formats that are difficult to access or use.
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AI systems are only as good as the data they are trained on, yet most enterprise data has not been properly reviewed or cleaned in years. As a result, Gartner estimates that around 60% of AI projects will fail or be abandoned due to poor data quality by the end of this year.
Clario helps solve this problem by connecting directly to existing file and content systems such as Google Drive, SharePoint, OneDrive, Box, and Confluence. It scans metadata to identify redundant, outdated, or low-value files.
When a file is flagged, Clario triggers workflows in tools like Slack and Microsoft Teams, allowing users to decide whether to keep, archive, or delete it—and the company charges only when a decision is made. Over time, Clario learns from these choices and becomes more automated, helping continuously clean and organize unstructured enterprise data.
Clario is already working with hundreds of enterprises and partnering with major organizations to help make their data ready for AI by removing “ROT” data (redundant, obsolete, and trivial content).
Early customer work has uncovered large amounts of unnecessary data across systems, including outdated file types like MP3 and WinZip, old knowledge base articles for discontinued products, and even full-length movies downloaded by former employees.
Clario’s co-founders have deep experience with the data problem they are trying to solve. One co-founder is a technologist who previously helped build enterprise file systems, while the other is a long-time operator who has bought and implemented these systems at scale.
Khan, a five-time CIO turned VC, spent years seeing data sprawl grow across companies, including Pure Storage and Moveworks. Vohra, a former engineering leader at Oracle, NetApp, Nutanix, and VMware, helped design much of the infrastructure where this data is stored.
“This is exactly the kind of problem that looks unsolvable until someone builds the right business around it,” said Saad Siddiqui, Partner, Preface Ventures. “The enterprise data crisis isn't new, but the cost of ignoring it today is becoming impossible to justify. We backed Clario because they are the only company working to get enterprises AI-ready on a foundational level in a space that has often been forgotten or neglected for many years.”
“This problem isn’t going away, it’s only compounding. The first wave of AI tools has caused the volume of unstructured data to increase at an exponential pace, with no slowdown on the horizon,” said Madhu Vohra, Co-Founder & CTO, Clario. “Enterprises cannot afford to further dilute precious resources like storage and compute, already taxed by the demanding requirements of AI and LLMs. The time to build a clean data foundation is now.”
“Four years post-ChatGPT, enterprises have spent billions on projects that are failing to make a meaningful impact. I’ve spoken with hundreds of CIOs during that time, and all of their AI projects run into the same wall: data that has never been cleaned up,” said Yousuf Khan, Co-Founder & CEO, Clario. “‘Garbage in, garbage out’ isn’t a cliché; it’s an incredibly costly mistake.
About Clario
Founded in 2026 by Yousuf Khan and Madhu Vohra, Clario is a platform designed to remove enterprise data ROT—redundant, obsolete, and trivial files that reduce AI performance, increase costs, and create hidden risks in company systems. The company’s mission is to make all enterprise data intentional, up to date, and useful for decision-making and operations.
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