The New York-based company plans to expand its engineering and AI research teams while strengthening its platform for managed service providers serving small and medium-sized businesses.
New York-based artificial intelligence company Hatz AI has secured $24 million in Series A funding to accelerate the development of its AI platform, expand its workforce and strengthen its services for managed service providers (MSPs) working with small and medium-sized businesses (SMBs).
The funding round includes investments from Nadia Partners, Vestigo Ventures and The Private Shares Fund. The investment was led by Josh Schertzer, Partner at Nadia Partners and former Chief Technology Officer of Blackstone.
Hatz AI plans to use the capital to double its existing workforce of approximately 60 employees, with hiring primarily focused on engineering, AI research and forward-deployed engineering teams. The company will also invest in product development and its go-to-market strategy.
Jimmy Hatzell, Co-founder and CEO of Hatz AI, said the investment comes amid growing demand among smaller businesses seeking to incorporate artificial intelligence into their operations.
According to Hatzell, many businesses are exploring ways to become AI-first or AI-native but require technical support to implement the technology effectively.
The company operates through a network of managed service providers that deliver AI solutions to business customers. Its partner base has tripled year-on-year, while revenue has grown at a faster rate, according to the company.
Hatz AI currently works with thousands of MSPs across approximately 10 countries, reflecting the expansion of its partner-led business model.
A key priority following the funding will be enabling MSP employees to develop and deploy customised AI solutions rather than relying solely on reselling existing AI products.
The company said it has issued more than 15,000 AI certifications globally and intends to introduce additional systems combining human expertise with AI-powered resources.
Hatz AI is also expanding its research and development capabilities to improve AI model evaluation, optimise performance and reduce deployment costs.
As part of these efforts, the company has developed a proprietary evaluation system called SMB1, which currently consists of approximately 500 tasks designed to assess AI performance in real-world business workflows.
Unlike publicly available benchmarks, SMB1 uses tasks and workflows observed through customer interactions with the company's platform. The system evaluates AI models based on task completion, complexity and cost.
Hatzell said the findings have already informed changes to the platform, including a substantial rebuilding effort completed over two months.
The company is also developing systems capable of identifying technical issues and, under human supervision, repairing certain aspects of its platform.
Hatz AI partner PCH Technologies welcomed the investment, with CEO Tim Guim indicating that the additional resources would support the delivery of AI-as-a-service solutions to customers.
The funding will support Hatz AI's efforts to expand its technology capabilities and partner ecosystem as smaller businesses increasingly explore AI adoption and automation.
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