Boris Valkov, an ex-engineer from Meta known for his pivotal role in developing PyTorch, has officially launched Lace AI, a groundbreaking startup focused on harnessing artificial intelligence to enhance customer service for home service industries.

Leaving Meta in late 2021, Valkov embarked on a journey influenced by his childhood experiences working in his family's grocery store, where he learned the importance of effective telephone customer service. Driven by a passion for AI and a desire to improve customer interactions, he partnered with Stan Stoyanov to create Lace AI.

Their vision? To merge AI with customer service to boost revenue for businesses—a concept validated through discussions with over 100 companies in various sectors. They identified that many sales in the home service industry, which includes HVAC, plumbing, and roofing, commonly initiate with phone calls.

Lace AI's innovative revenue intelligence software aims to increase sales conversions by analyzing every incoming call. Unlike competitors that evaluate only a subset of calls, Lace claims to assess 100% of calls, ensuring no potential leads slip through the cracks.

With more than 100 clients, including significant names like A1 Garage Door Service and Eco Plumbers, Lace AI has announced an astonishing 1,000% year-over-year recurring revenue growth projected for 2024—even though it began customer sales just last year. The company operates on a subscription service model, charging a monthly fee based on the number of agents or customer support representatives.

To put their success in perspective: even a modest 1% increase in bookings can yield substantial financial gains. For instance, a home service company generating $300 million in revenue could see a $3 million boost with just a fraction of an improvement in conversions. Some businesses leveraging Lace are reporting double-digit growth.

Today, Lace AI is also announcing a significant funding milestone, securing a total of $19 million since its inception in early 2022. This total includes a newly revealed $5 million pre-seed round, led by Canvas Ventures, and a $14 million seed round from Bek Ventures, with participation from Horizon VC and notable investors like Marcin Zukowski and Heini Zachariassen. Though Valkov refrained from discussing the startup's valuation, he hinted that this funding has escalated their growth ambitions.

Bek Ventures’ managing partner, Mehmet Atici, highlighted the potential impact of Lace AI in sectors often underserved by technology, praising the team’s expertise in unlocking these opportunities.

Currently employing 20 people, Lace AI is gearing up to triple its workforce with the new capital, poised to reshape the landscape of customer service in the home services sector.