Avoca, a New York-based startup building AI agents for home services businesses, has raised more than $125 million across three funding rounds at a $1 billion valuation, according to Fortune. The Series B was co-led by Meritech Capital Partners and General Catalyst, with participation from Kleiner Perkins, BoxGroup, Alt Capital, and Amplify Partners, per Crunchbase.
What Avoca Builds
The company deploys AI agents that handle inbound calls, schedule appointments, follow up on estimates, and run dispatch operations for HVAC, plumbing, roofing, and electrical businesses. Avoca now serves more than 800 customers across the physical services sector.
Co-founder Tyson Chen told Fortune that the economics are fundamentally different from consumer-facing call automation: “When a restaurant misses a phone call, that’s a $30, $40 order. When a home service business misses a phone call, that could be a $30,000, $40,000 HVAC install they’re missing.”
Funding History
The $125 million total spans three rounds. Y Combinator led the seed in 2024. Kleiner Perkins led the Series A. Meritech and General Catalyst co-led the Series B that brought the valuation to $1 billion.
Kleiner Perkins partner Leigh Marie Braswell, who backed the Series A, told Fortune that the services economy has been systematically overlooked: “A company like Avoca is a necessary bridge between Silicon Valley and Main Street, these extremely critical businesses that AI can help.”
The Market
The HVAC industry alone was worth approximately $50 billion in 2025, with estimates reaching $75 billion by 2032. Avoca is targeting what its founders describe as the physical economy: tradespeople who are resistant to replacement by AI but whose back-office operations are ripe for automation.
“We consider ourselves to be building for the physical economy, and often they’re the people who get left behind,” Chen told Fortune. “Everyone’s trying to build for the Fortune 500, but there’s this giant, trillion-dollar economy no one is touching.”
Competitive Positioning
Avoca sits in an increasingly crowded AI call center category, but its narrow vertical focus on home services differentiates it from horizontal customer communication platforms like Netomi (which raised $110 million in the same week, per Crunchbase) and enterprise tools from Zendesk or Intercom. The vertical approach mirrors ServiceTitan’s playbook of building specifically for trades rather than competing broadly.
The $1 billion valuation signals that investors see autonomous agents for the physical economy as a distinct category, separate from the enterprise contact center war being fought by horizontal platforms.