In the high-risk world of Silicon Valley, where billions of dollars are poured into chatbots and generative art, Apoorva Srivastava and Tyson Chen decided to see where some tech founders go: a local HVAC company. That decision has officially paid off. His startup, ‘Avoca’, has reached a valuation of $1 billion after a $125 million funding round led by Meritech Capital and General Catalyst, with participation from Kleiner Perkins.Its premise is based on lessons that Srivastava learned while growing up in Michigan. As a first-generation Indian-American, he spent years helping his family manage phone calls for their business. He realized a brutal truth of business: In industries like plumbing, roofing and electrical work, a missed call is not just a minor inconvenience but a lost contract.
from michigan to mit
Srivastava is a graduate of the Massachusetts Institute of Technology (MIT) and initially experimented with building AI answering services for restaurants. While a missed reservation might cost a restaurant $40, Srivastava and Chen soon learned that a missed call for an HVAC emergency could cost a contractor more than $40,000.“When a restaurant misses a phone call, it’s a $40 order,” Chen told Fortune.He added: “When a home service business misses a call, it could be a $40,000 HVAC install.”
bridging blue collar hat
Unlike many AI firms that aim to automate desk work, Avoca focuses on the “main characters” of the physical economy: technicians. The startup’s AI agents are designed to appear human, respond to calls within seconds, and handle complex scheduling 24/7.What sets Avoca apart is its deep integration with industry-specific software. AI doesn’t just take a message; It checks real-time calendars, enters appointments directly into the company’s systems, and actively pursues old estimates that were never signed.
A trillion-collar opportunity
The market reaction has been explosive. Avoca now serves more than 800 customers, including national brands like 1-800-GOT-JUNK? and Goettel Air Conditioning. In 2025, the company projects to cross eight figures in annual recurring revenue and is currently on track to book nearly $1 billion of jobs for its clients this year.Investors are betting that “vertical AI,” technology built for specific industries, is the next frontier. While Silicon Valley pursues general-purpose intelligence, Srivastava and Chen have found their fortune in the hum of air conditioners and the ringing of plumbers’ phones, ensuring that in a $1 trillion home services economy, no call will go unanswered.
