Large companies have been stuffing artificial intelligence software into every possible product for years. Now, Fo
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unders Fund is backing a startup that wants to help small businesses use the technology, too.
Netic, which just raised $23 million in a Series B funding round
led by the firm, is equipping businesses and contractors like electricians, roofers and repairmen with AI tools.
It’s not the only Silicon Valley startup to target small businesse
s. Chris Hoffmann, who runs home services company Hoffmann Brothers, says he’s been bombarded by pitches for AI tools for years.
But Netic, which offers products that help with a wide range of services, had a different spiel. The company’s leade
rship had “a product vision which extended far beyond this point solution narrow focus,” Hoffma
nn said. Its software helps with everything from tracking call volume to customer intake to actually booking workers’ visits, he said.
Earlier this year, when a tornado hit St. Louis, damaging home
s across the city. Hoffmann said his company’s roofing business go
t more than 600 calls in 90 minutes. Netic’s AI customer service tools took most of those calls, allowing the compan
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y to respond at a much higher speed and triage requests.
The startup, valued at $450 million in the latest funding round, was founded by Melisa Tokmak. Its seed rou
nd was led by Greylock Partners with Founders Fund participating, an
d its Series A was led by Founders Fund with participation from Greylock, Hanabi Capital, Day One Ventures, SV Angel and several angel investors.
Backing three early funding rounds in a row is something Founders Fund rarely does, said Amin Mirzadegan, the partner who led the deals. The last companie
s that Founders Fund had enough conviction to back in a similar way were Cognition AI and Anduril Industries Inc
., where they also did three successive early rounds, Mirzadegan said.
“The AI opportunity for serving Main Street companies, we feel, is enormous,” he said. “Mainstream
businesses don’t get a lot of love or attention from Silicon Valley historically. Fundamentally, reaching a customer in Gary, Indiana, is pr
obably a lot harder than reaching a customer down the road in Sunnyvale, California.”
Tokmak has an unique resume for a Silicon Valley founder. Born in a small town in Turkey, she left home for a boarding school near Istanbul at 13, studied math
and physics in India, and later went to Stanford University. After graduating, she worked on product and engineerin
g teams at Facebook and at Scale AI, where she helped spearhead the company’s government and security focus.
She was still working for Scale when her home in California’s Marin County needed a new heating and ventilation s
ystem. But when she started contacting service providers, she encountered a problem that will be familiar to any home
owner — difficult-to-reach businesses, dropped leads and garbled text messages.
Her climate-control system saga prompted her to start Netic as a platform to handle incoming customer requests and visits using AI customer service agents.
The startup’s customers include pest control businesses, roofers, plumbers and others — “the types of industries t
hat millions of businesses and consumers are interacting with,” Tokmak said. “We serve essential servic
es that really are the backbone of the American economy.”
Tokmak said that the company has been consciously trying to keep its funding rounds a sustainable size, d
espite the current climate of soaring AI valuations. “We’re building a different type of company that will withstand any kind of bubble and any kind of vanity metrics,” she said.