Multiplier has raised a $35 million Series B to expand its model of acquiring specialized professional services firms and building artificial intelligence tools around their operations. The round was led by The General Partnership, with participation from Ribbit Capital and Lightspeed Venture Partners.
Multiplier also appointed former Slack Chief Financial Officer Allen Shim as President and CFO.
Shim helped lead Slack through its public listing and remained with the company through its acquisition by Salesforce.
At Multiplier, he will oversee finance, operations, partnerships and people while helping establish the company’s San Francisco office.
Multiplier acquires established professional services firms operating in specialized markets and with long-standing customer relationships.
Acquired firms retain their names, leadership teams and operating independence. Multiplier provides long-term capital, technology, recruiting resources, shared infrastructure and operational support.
The company operates as a permanent holding company rather than a conventional private equity vehicle with a defined investment exit period.
Multiplier employs more than 30 technology professionals who work directly within its portfolio companies to develop AI tools based on their existing workflows.
Because Multiplier owns the firms using its technology, its development teams can access the relevant workflows, data and professionals needed to design and implement the tools.
The company’s approach is intended to automate preparatory and administrative tasks while keeping experienced professionals responsible for final advice, judgment and client relationships.
Multiplier has acquired eight firms, including five during the past year, and has signed term sheets with four additional businesses.
Its network currently serves customers across more than 10 countries. Portfolio companies have also begun referring clients and commercial opportunities to one another.
The new funding will support additional acquisitions and the expansion of Multiplier’s technology and operating teams.
KEY QUOTES:
“An AI’s answer is worth zero until a professional puts their name on it.”
“We’re giving firms AI muscle while keeping their human heart, providing them with better tools, more time for judgment and the capacity to serve more clients without lowering the bar on quality or trust.”
Noah Pepper, Founder and CEO of Multiplier
“Multiplier is not trying to replace the professionals clients trust. It is building technology into the firms themselves so those professionals can serve more clients, respond faster and spend more time on work that requires judgment.”
Anthony Kline, Partner at The General Partnership
