Hatz AI Inc. has raised $24 million in a Series A funding round to help managed services providers deliver artificial intelligence tools to small and medium-sized businesses. Nadia Partners led the round, with participation from Vestigo Ventures and The Private Shares Fund. The startup said the funding will support expansion of an MSP network that reaches all 50 U.S. states, nine Canadian provinces and nine other countries.
Chief executive and co-founder Jimmy Hatzell said small and medium-sized businesses are the lifeblood of the global economy but risk being left behind in the shift to AI. Most lack in-house programmers and data scientists, as well as the budgets needed to integrate AI into their operations, he said. Many also find it difficult to evaluate a mix of third-party AI tools, chatbots and autonomous agents while absorbing unpredictable compute costs and keeping systems and data secure.
Hatz AI's answer is to work through the MSPs that already manage much of these companies' information technology. Hatzell said SMBs need assistance from providers they already trust, and that AI transformation is existential for them even though technology alone will not make a business AI-native. MSPs, in turn, need tools to offer AI services securely, which is the market Hatz AI targets.
The company has built an all-in-one AI operating system for MSPs, described as a multitenant AI control plane with governance guardrails, spend tracking and automated routing to leading frontier models. MSPs can package AI services under their own brands. The platform provides access to customizable AI agents and workflows for functions including internal ticket triage, technical operations, process automation, marketing content generation, sales lead qualification and financial bookkeeping.
Josh Schertzer of Nadia Partners said MSPs are the most logical partners to help smaller companies adopt AI. He said Hatz AI has focused exclusively on powering MSPs rather than selling directly to end users and has built a leading position in channel-delivered AI. Hatzell said giving MSPs control over governance, spend and deployment makes it possible for small businesses to become AI-native.
Hatz AI said its active MSP partner base tripled over the past year and its revenue grew faster still. The company has issued more than 15,000 AI builder certifications globally and has grown its internal team from 14 employees to more than 60, opening a new office in New York City to accommodate the staff. The new funding will go toward building out proprietary model-routing engines and internal software factory infrastructure, and toward hiring for forward-deployed engineering and AI research teams, Hatzell said.
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