Lace AI, a startup founded by former Meta engineer Boris Valkov, has successfully raised $14 million in seed funding to enhance its AI-driven customer service software aimed at home service companies. This funding round, led by Bek Ventures, marks a significant milestone for the company, which aims to optimise call centre interactions and boost revenue generation for its clients.
Key Takeaways
Lace AI raised $14 million in seed funding, totalling $19 million since its inception.
The company’s software analyses 100% of customer calls to identify missed revenue opportunities.
Lace AI plans to triple its workforce and expand operations with the new funding.
The startup has already experienced a remarkable 1,000% annual recurring revenue growth in 2024.
Overview of Lace AI
Founded in 2022 by Boris Valkov and Stanislav Stoyanov, Lace AI is based in Mountain View, California, and focuses on providing AI-powered solutions for the home services sector, including plumbing, HVAC, and roofing. The company’s innovative software is designed to analyse every incoming call, ensuring that no potential sales opportunity is overlooked. This comprehensive approach allows businesses to convert more calls into sales, significantly increasing their revenue.
Funding Details
The recent funding round was led by Bek Ventures, with participation from several notable investors, including:
Horizon VC
Launchub
Marcin Zukowski, co-founder of Snowflake
Heini Zachariassen, founder of Vivino
This funding will enable Lace AI to expand its operations and enhance its AI technology, which has already shown promising results. The company has reported a staggering 1,000% growth in annual recurring revenue since launching its product in late 2023.
The Vision Behind Lace AI
Boris Valkov’s journey to founding Lace AI was inspired by his early experiences in customer service while working in his family’s grocery store. His background in AI and software engineering, particularly during his tenure at Meta, equipped him with the skills to develop a solution that addresses the unique challenges faced by home service businesses.
Valkov and Stoyanov conducted extensive research, speaking with over 100 companies to understand their needs. They discovered that many sales in the home services sector begin with a phone call, making it crucial to optimise these interactions for better conversion rates.
Future Plans and Growth Strategy
With the new funding, Lace AI plans to:
Expand its team: The company aims to triple its workforce to support its growth and development efforts.
Enhance its platform: Continued investment in AI technology will ensure that Lace AI remains at the forefront of customer service solutions.
Increase market presence: By working with over 100 home service businesses, Lace AI is poised to capture a larger share of the market, helping clients achieve double-digit revenue growth.
Mehmet Atici, managing partner at Bek Ventures, highlighted the potential of Lace AI, stating that the team has a keen understanding of how to address the needs of sectors that have historically been underserved by technology. This insight presents a significant opportunity for growth as the demand for AI-driven solutions continues to rise.
As Lace AI continues to scale, it aims to solidify its position as a leader in the AI customer service space, helping businesses unlock their full revenue potential through innovative technology.
Sources
Lace AI Raises $14M in Seed Funding, FinSMEs.
Ex-Meta engineer raises $14M to help home services unlock call center revenue with AI, TechCrunch.
