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AI Startup Avoca Hits $1B Value With $125M Round

Key Points
  • Avoca has raised more than $125 million and reached a $1 billion valuation to bring AI-powered front-office automation to service businesses.
  • Backed by Meritech, General Catalyst, Kleiner Perkins, Amplify Partners, and Y Combinator, Avoca is on track to book $1 billion in jobs in 2025.
  • The platform handles calls, scheduling, and customer follow-ups automatically, targeting HVAC, plumbing, and other trades businesses across the U.S.
April 27, 2026
Avoca founders: Apurva Shrivastava and Tyson Chen
Credits: Avoca official website

Funding details

Avoca, an AI platform built for home and other service businesses, has raised more than $125 million across multiple funding rounds and reached a $1 billion valuation. The company was co-founded by Apurva Shrivastava and Tyson Chen, who set out to solve a specific problem that most business software had not addressed: the front office of the skilled trades.

Home services is a large part of the U.S. economy and one of its least digitized. The market was estimated at $97.16 billion in 2025 and is projected to reach $194.73 billion by 2035. Most of the software built for contractors and service operators has historically focused on back-office tasks like invoicing, dispatch, and payroll. The front office — where calls come in, estimates go out, and jobs get booked — has depended almost entirely on human staff who cannot be available at all hours and who miss calls when things get busy.

Meritech and General Catalyst led the Series B, which was raised at a $1 billion valuation. Kleiner Perkins led the Series A. Amplify Partners and Y Combinator also participated across the full funding history.

How the Avoca Platform Works for Service Businesses

Service businesses live and die by responsiveness. A call that goes unanswered at 2 a.m. is a job that goes to a competitor. An estimate that sits in a system without a follow-up is money left behind. During busy periods, most small operators do not have the headcount to keep up with the volume.

Avoca's platform is built to handle those gaps automatically. It answers inbound calls, books jobs directly into the business's CRM, follows up on outstanding estimates, and runs outbound marketing campaigns based on the business's current capacity and schedule. None of this requires a person to manage it in real time. Customers can set the system up and let it run.

"Since we started using Avoca, our booking rates have jumped dramatically, and we're capturing far more demand after hours and during peak storms. Additionally, our customers love speaking to the AI. It's allowed us to make sure we never miss a customer in their time of need." — Keith Chisholm, CTO of Sila Services.

Where Avoca Plans to Expand With the New Funding

Avoca built its business in HVAC and plumbing, but the new capital will go toward expanding into other service verticals with similar operating patterns. Moving companies, junk removal operators, automotive service providers, and property management firms are among the markets on the roadmap. What they share with home services is a dependence on phone calls, technician schedules, and tight turnaround times.

Beyond adding new industries, Avoca is investing in product development and hiring. The founders describe the company's long-term goal not as building another business software tool but as building the operational infrastructure that service businesses of all sizes run on.

"There's no shortage of software built for software companies. Avoca is building an AI workforce for the people who actually keep America running–millions of service businesses across the country. We're proud to partner with Apurva and Tyson as Avoca becomes essential infrastructure for the services economy." — Vedant Suri, Partner at General Catalyst.

How Avoca Built Its Customer Base

Avoca is headquartered in New York City and has an office in Santa Barbara. The product handles the full range of customer communication for a service business: inbound calls, chats, texts, and emails; automatic job booking into CRM platforms including ServiceTitan; follow-up messages on unbooked estimates; and outbound campaigns to bring back past customers. It is designed to cover what a front-office team would handle, without the staffing constraints.

Early adoption was not easy. Contractors tend to be cautious about new software, particularly when their margins are tight and their schedules leave little room for things that do not work. Avoca built its reputation one operator at a time.

"Every successful contractor already has a winning playbook. Answer every call. Follow up relentlessly. Fill the board before it empties. Provide the highest quality service," said Apurva Shrivastava, co-founder of Avoca. "The reality is that execution breaks down when demand spikes or when teams are stretched thin."

Avoca now works with some of the largest operators in the country, including Turnpoint, 1-800-GOT-JUNK?, and Goettl. The company has also formed partnerships with ServiceTitan, Nexstar, and Clover. In 2025, it passed eight figures in annual recurring revenue. This year, the company says it is on track to book $1 billion in jobs through its platform.

The Investors Behind the Round

The $125 million spans Avoca's Seed, Series A, and Series B rounds. Meritech and General Catalyst co-led the Series B. Kleiner Perkins led the Series A. Y Combinator and Amplify Partners participated across earlier rounds.

"Three years ago, AI voice for home services wasn't a category. Avoca created it. Today, every major contractor in America knows the name." — Alex Clayton, General Partner at Meritech Capital.

Leigh Marie Braswell, a partner at Kleiner Perkins, described Avoca as something that feels less like a tool and more like core infrastructure for how the industry operates.

Funding details

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