Boris Valkov, an AI engineer at Meta, contributed to the development of PyTorch, a significant machine learning library globally. During his tenure at Meta, Valkov identified that artificial intelligence was on the verge of unlocking new capabilities within the application layer of the software stack.
In late 2021, Valkov departed from Meta to establish Lace AI, a startup focused on creating AI-driven customer service software for home service companies. Valkov’s journey into entrepreneurship began in his youth while working in his family’s grocery store, where he recognized the efficacy of telephone customer service. Later, he sought to integrate his fascination with AI and customer service, leading to the inception of Lace.
Combining his extensive software engineering expertise acquired from companies like VMware and Meta, Valkov partnered with Stan Stoyanov to integrate AI with customer service to assist businesses in enhancing their revenue. The duo engaged with over 100 companies across various industries, discovering that in the home services sector, sales often commence with a call to a call center. The home services sector includes industries such as HVAC, plumbing, and roofing.
Lace posits that customer calls to these businesses can either convert into sales or not, and asserts that its software can increase call conversion rates. Specifically, Lace’s revenue intelligence software employs AI technology to analyze all incoming calls to identify lost revenue opportunities. It claims to be more comprehensive than other solutions, monitoring 100% of calls rather than a sample, ensuring no potential leads or opportunities are overlooked.
Based in Mountain View, Lace partners with over 100 businesses, including A1 Garage Door Service, Sage Home, Eco Plumbers, Matrix, and Lee’s Air. While Valkov did not disclose precise revenue figures, he stated that Lace experienced 1,000% annual recurring revenue growth in 2024, despite only beginning customer sales at the end of 2023. Lace operates on a SaaS (software-as-a-service) model, charging a monthly fee per agent or customer support representative.
Even a 1% increase in bookings can significantly benefit a home services or remodeling company. For instance, a company with $300 million in revenue seeing a 1% increase would gain an additional $3 million in revenue. Some of Lace’s clients report double-digit revenue growth.
Lace has announced a total of $19 million in funding since its inception in early 2022. This amount includes a previously undisclosed $5 million pre-seed round led by Canvas Ventures and a recent $14 million seed round led by Bek Ventures. Additional investors include Horizon VC, Launchub, Marcin Zukowski of Snowflake, Heini Zachariassen of Vivino, and other founders. Valkov chose not to disclose the company’s valuation but mentioned that the seed round was an “up” round.
Mehmet Atici, managing partner at Bek Ventures, expressed his interest in investing in Lace due in part to its experienced team. He noted the growing trend of applying AI to make substantial impacts in sectors traditionally underserved by technology and credited Lace for accurately identifying and addressing the needs of these sectors.
Currently, Lace employs 20 people and plans to triple its workforce with the newly secured funding.
