Boris Valkov, an AI engineer formerly at Meta, played a significant role in the development of PyTorch, a leading machine learning library. During his tenure at Meta, Valkov became aware of the emerging capabilities of artificial intelligence, particularly in enhancing the application layer within software stacks.
Valkov departed from Meta in late 2021 to establish Lace AI, a startup focused on creating AI-driven customer service software tailored for home service companies. His journey toward entrepreneurship was influenced by his early experiences in his family’s grocery store, where he learned the importance of telephone customer service. This background inspired him to merge his interests in AI and customer service, leading to the inception of Lace.
Drawing on extensive software engineering experience from VMware and Meta, Valkov joined forces with Stan Stoyanov to integrate AI with customer service, intending to help businesses increase their revenue. After engaging with over 100 companies across various industries, they identified a pattern in the home services sector, wherein many sales originated from calls made to call centers. This sector includes businesses like HVAC, plumbing, and roofing.
Lace AI’s core concept is to enhance call conversion rates into sales. The company’s software claims to boost these conversions by using AI to analyze incoming business calls, identifying missed revenue opportunities. Unlike other platforms, Lace monitors all calls, aiming to ensure no potential lead goes unnoticed.
Based in Mountain View, Lace collaborates with more than 100 companies, including A1 Garage Door Service, Sage Home, Eco Plumbers, Matrix, and Lee’s Air. Although Valkov did not disclose exact revenue figures, he noted that Lace achieved a 1,000% annual recurring revenue growth in 2024, following its commercial introduction in late 2023. Lace operates on a SaaS model, charging a monthly fee per customer support representative or agent.
Even a modest 1% increase in bookings could significantly impact revenues for home services or remodeling companies. For instance, a company with $300 million in revenue would experience a $3 million increase with just a 1% rise. Some Lace clients have reported double-digit revenue growth.
Lace has announced a total funding of $19 million since its inception in early 2022, according to exclusive information shared with TechCrunch. This 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 investors include Horizon VC, Launchub, Snowflake’s co-founder Marcin Zukowski, and Vivino’s Heini Zachariassen, among others. Valkov did not comment on the company’s valuation but confirmed that the seed funding was an “up” round.
Mehmet Atici, managing partner at Bek Ventures, highlighted his investment in Lace, attributing it partly to the company’s experienced team. He noted the growing trend of leveraging AI to impact traditionally underserved sectors significantly and commended the team’s ability to understand and address the needs of these niche markets.
Currently, Lace employs 20 people and plans to triple its workforce with the newly acquired funding.
