Lace AI, a Bulgarian-founded startup, has made headlines by securing $19 million in seed funding aimed at transforming revenue intelligence in the home services industry through advanced artificial intelligence. The announcement, made on April 23, 2025, comes on the heels of the company achieving a staggering 1000% growth in 2024, a feat that positions it as one of the fastest-growing startups in the sector.
Founded in 2022 by Boris Valkov, Lace AI is tailored specifically for the $650 billion home services and remodeling market, which includes industries such as HVAC, plumbing, and roofing. In this sector, where most revenue is generated through phone calls, businesses often face significant challenges due to a lack of visibility into why high-intent inbound calls fail to convert into sales. This issue leads to revenue leaks estimated between 15% and 40%, a gap Lace AI aims to close.
Traditional methods of analyzing call performance, which typically rely on manual reviews and incomplete metrics, have proven insufficient. Lace AI addresses this problem by employing cutting-edge technology that analyzes 100% of inbound calls. The platform automatically classifies outcomes, identifies missed revenue opportunities, and provides targeted coaching insights—all without requiring additional marketing spend or hiring new staff.
As a result, customers using Lace AI report impressive metrics, including booking rates of up to 98% and increases in net sales by 35%, all achieved without incurring extra overhead. This immediate value has led some customers to invest as much as 10% of their sales representatives' salaries into the Lace AI product, demonstrating the platform's perceived worth in enhancing revenue.
Mehmet Atici, Managing Partner at Bek Ventures, which led the funding round, emphasized the importance of Lace’s innovative approach. He remarked, "Lace’s product immediately resonates with their customers. Cutting through the AI hype and noise with instant value is what will make AI companies win." This sentiment reflects a broader trend in the industry, where businesses are increasingly seeking tangible results from their investments in technology.
The recent funding round was not only led by Bek Ventures but also saw participation from notable investors including LAUNCHub Ventures, Horizon VC, and industry titans such as Marcin Zukowski, co-founder of Snowflake, Heini Zachariassen, founder of Vivino, and Hristo Borisov, co-founder of Payhawk. This diverse group of investors brings a wealth of experience and a shared vision for the potential of AI in the home services sector.
Boris Valkov, co-founder of Lace AI, has a rich background in artificial intelligence, having previously led foundational projects at Facebook AI, including the development of PyTorch and scaling distributed training for trillion-parameter models. He expressed his vision for Lace AI, stating, "We built Lace as the AI-native revenue intelligence platform purpose-built for the $650 billion home services industry, a sector long overdue for transformation. What sets us apart is our relentless pace of innovation and our ability to execute fast. That’s how we’ve been able to drive 1000% growth in a single year, and we’re just getting started."
With plans to invest the newly acquired $19 million into expanding research and development initiatives, Lace AI aims to further enhance its AI capabilities through its Sofia-based research center, which has quickly become one of the largest AI hubs in the region. This investment will not only bolster their technological advancements but also solidify their position in the competitive landscape of voice AI.
The home services industry, valued at $650 billion, remains largely traditional, with many transactions and customer interactions still conducted over the phone. Lace AI's innovative approach is set to redefine how these businesses operate, providing them with the tools needed to convert high-intent calls into sales effectively.
As Lace AI continues to grow and evolve, it remains committed to democratizing access to elite AI technologies that have typically been reserved for larger tech companies. By harnessing the power of AI, Lace not only seeks to improve revenue outcomes for its clients but also aims to set a new standard in the home services industry.
The future looks promising for Lace AI and its clients, as the startup is poised to lead the charge in AI-driven revenue intelligence. With a focus on innovation, customer satisfaction, and measurable results, Lace AI is carving out a significant niche in a market that is ripe for disruption.
