Former Meta Engineer Raises $14M for Lace AI

Boris Valkov, an AI engineer at Meta, was once involved in building PyTorch, one of the world’s largest machine learning libraries.

During his time there, Valkov recognized that artificial intelligence was on the verge of unleashing remarkable potential at the application level of the software stack.

In late 2021, he left Meta to found Lace AI, a startup developing AI-powered customer service software tailored for home service companies.

Valkov's entrepreneurial journey began during his childhood when he worked at his family’s grocery store, which gave him early insights into the importance of phone-based customer service. As an adult, he started exploring ways to combine his interest in AI with customer service, leading to the idea behind Lace.

Leveraging years of software engineering experience from VMware and Meta, Valkov partnered with Stan Stoyanov to integrate AI with customer service solutions, helping businesses generate additional revenue.

The duo spoke with over 100 companies across various industries and discovered that many sales in the home services sector begin with calls to call centers. Home services encompass HVAC, plumbing, roofing, and similar companies.

Lace’s philosophy is simple: if customers call these businesses, those calls can either turn into sales—or they might not. The company claims its software enhances the chances of converting those calls into successful sales.

Specifically, Lace’s Revenue Intelligence software uses AI technology to analyze all incoming calls to these companies, identifying missed revenue opportunities. According to the company, it is more comprehensive than competing products because it monitors 100% of calls rather than just a portion. It evaluates every interaction to ensure no potential lead or opportunity goes unnoticed.

Based in Mountain View, Lace collaborates with over 100 businesses, including A1 Garage Door Service, Sage Home, Eco Plumbers, Matrix, and Lee’s Air. While Valkov declined to share exact revenue figures, he revealed that Lace achieved a 1,000% annual recurring revenue (ARR) growth in 2024—though it only began selling to customers at the end of 2023. The company operates under a SaaS (Software as a Service) model, charging per agent or customer support representative monthly.

Even a 1% increase in bookings can significantly impact home service or remodeling companies. For instance, a company with $300 million in annual revenue could see an additional $3 million by increasing bookings by just 1%. According to Valkov, some businesses using Lace have experienced double-digit revenue growth.

Today, Lace announced it has raised a total of $19 million in funding since its founding in early 2022, exclusively shared with TechCrunch. The total includes a previously undisclosed $5 million pre-seed round led by Canvas Ventures and a recent $14 million seed round led by Bek Ventures. Other backers include Horizon VC, Launchub, Snowflake co-founder Marcin Zukowski, Vivino’s Heini Zachariassen, and other founders. Valkov did not disclose the valuation but mentioned that the seed round was an "up-round."

Mehmet Atici, managing partner at Bek Ventures, said part of his decision to invest in Lace was due to its experienced team.

“There’s a growing trend of applying AI to historically underserved technical service areas, and this team has a sharp understanding of how to make a real impact—accurately pinpointing and addressing the needs of often-overlooked niche markets represents a massive opportunity,” he told TechCrunch.

Currently, Lace has 20 employees. The company plans to use the new funding to triple the size of its team.