In the high-stakes world of Silicon Valley, where billions of dollars are being poured into chatbots and generative art, Apurva Shrivastava and Tyson Chen decided to look where few tech founders go: local HVAC companies. That decision has officially paid off. Their startup “Avoca” has reached a valuation of $1 billion after raising $125 million in funding led by Meritech Capital and General Catalyst, with participation from Kleiner Perkins Caufield & Byers.The premise is rooted in lessons Shrivastava learned while growing up in Michigan. A first-generation Indian-American, he spent years helping his family manage the calls for their business. He realized a harsh truth about the industry: In industries such as plumbing, roofing and electrical work, missed calls can lead to more than just a minor inconvenience, and can lead to lost contracts.
From Michigan to MIT
Shrivastava, a graduate of the Massachusetts Institute of Technology (MIT), initially tried building an AI answering service for restaurants. While a missed reservation might cost a restaurant $40, Shrivastava and Chen soon discovered that a missed call for an HVAC emergency could cost a contractor more than $40,000.“When a restaurant misses a call, the order is worth $40,” Chen tells Fortune.“When a home service business misses a call, HVAC installation costs can be as high as $40,000,” he added.
bridge blue collar hat
Unlike many AI companies aiming to automate desk jobs, Avoca focuses on the “heroes” of the real economy: technicians. The startup’s AI agents are designed to sound like humans, answer calls in seconds, and handle complex dispatches 24/7.What sets Avoca apart is its deep integration with industry-specific software. AI doesn’t just take in information; It checks real-time calendars, makes appointments directly in company systems, and proactively follows up on old estimates that were never signed.
Trillions of opportunities
The market reaction was explosive. Avoca now serves more than 800 customers, including national brands such as 1-800-GOT-JUNK? and Gothel air conditioning. The company will generate more than eight figures in annual recurring revenue by 2025 and is currently on track to book nearly $1 billion in jobs for its clients this year.Investors are betting that “vertical AI” — technology built for specific industries — will be the next frontier. While Silicon Valley chases general intelligence, Shrivastava and Chen have found their fortune in the hum of air conditioners and the ringing of plumbers’ phones, ensuring that in the $1 trillion home services economy, no call goes unanswered.
