Avoca Raises $125M at $1B Valuation

Avoca, an AI platform targeting America's services economy, announced the completion of its Series B funding round at a $1 billion valuation, bringing total capital raised to more than $125 million across all funding stages. The Series B was led by Meritech Capital Partners and General Catalyst, with earlier backing from Kleiner Perkins during the Series A. Founded three years ago, Avoca has positioned itself to address a structural gap in software solutions for home services contractors who have historically relied on spreadsheets, manual workflows, and cobbled-together vendor stacks.

The company's core offering is an AI-powered voice and workflow automation platform designed to eliminate operational bottlenecks in service businesses. Avoca's agents handle incoming calls around the clock, qualify leads, schedule jobs, execute customer follow-ups, and manage marketing campaigns—capabilities that typically require dedicated customer service representatives. This automation directly addresses a critical pain point in the services economy: the loss of revenue from missed calls and unprocessed leads, particularly during peak demand periods when field staff are deployed to customer sites.

Avoca's financial trajectory demonstrates strong commercial traction. The company surpassed eight figures in annual recurring revenue during 2025 and is on track to facilitate $1 billion in job bookings in 2026. This metric underscores the platform's value proposition—it is not merely a software tool but a revenue-enabling system that directly impacts contractors' top-line growth. The company has established integrations with major CRM and dispatch platforms including ServiceTitan, Nexstar, and Clover, ensuring compatibility with existing contractor workflows and reducing friction in adoption.

Looking forward, Avoca is broadening its addressable market beyond home services into adjacent verticals including moving companies, automotive services, and property management. This expansion strategy targets the broader services economy, which the company characterizes as the largest, most labor-intensive, and most cash-generative segment of the American economy despite remaining largely dependent on legacy operational practices. The combination of strong revenue metrics, strategic partnerships, and platform extensibility positions Avoca as a significant player in the broader wave of AI-driven workplace automation within service industries.