Multiplier raised $27.5M to buy service firms and stack them with AI.
The startup started in late 2022 as a SaaS aiming to sell software to tax accountants. Then founder Noah Pepper saw AI changing the game after ChatGPT’s launch.
Multiplier bought Citrine International Tax, a tiny cross-border tax service, and stuffed it with AI tech. Result: Citrine doubled its profit margins by cutting manual work. 
Pepper pivoted. Instead of building software, Multiplier would buy small service companies and boost them with AI.
Lightspeed Venture Partners led the $27.5M seed + Series A round, with Ribbit Capital and SV Angel backing the seed.
The strategy rides a new VC trend: acquire people-focused firms, then scale them with AI. Lightspeed partner Justin Overdorff said it only works well with small targets willing to change.
“Until AI existed, none of this was possible,”
Justin Overdorff explained.
“If you go to an accounting firm that has 200 accountants,
it’s unlikely to get adopted at a [high] rate.”
Citrine was just two people before the Multiplier deal. Now it’s more profitable and growing.
Multiplier wants to take on the Big Four by building an AI-driven competitor.
Pepper said they target high-recurring-revenue firms led by folks keen to tailor AI into their workflows.
“It’s a little bit like a venture-style business where you’re
looking to make a bet on this leader who you think is just amazing
in their category,” Pepper said.
Check Multiplier’s site for updates on its AI-powered roll-ups.
