Multiplier Holdings, a startup founded by former Stripe executive Noah Pepper, has raised $27.5 million in combined seed and Series A funding to fuel its mission: acquiring and transforming traditional accounting firms with AI.
Originally launched in 2022 as a SaaS startup aimed at tax accountants, Multiplier quickly pivoted after the release of ChatGPT. “I realized I was barking up the wrong tree,” said Pepper. “Instead of building software for firms, we needed to make professionals more effective with AI.”
The AI-Driven Roll-Up Strategy
Multiplier’s breakthrough came when it acquired Citrine International Tax, a 12-person firm specializing in cross-border tax services. After equipping Citrine with its AI tools, the firm’s profit margins more than doubled. This success led Multiplier to adopt a private equity-style roll-up strategy: buy service firms and scale them using AI.
Who’s Backing Multiplier?
- Seed Round: Led by Ribbit Capital with SV Angel participating
- Series A: Led by Lightspeed Venture Partners
Lightspeed’s Justin Overdorff said Multiplier is part of a broader movement where VCs are backing companies that acquire and enhance people-heavy service firms with AI. “Until AI existed, none of this was possible,” he said. Lightspeed has invested in three other similar ventures not yet publicly disclosed.
Why It Works
According to Overdorff, the strategy is especially effective with smaller firms, which are more flexible and open to AI adoption. “Try changing the workflow of a 200-accountant firm—it’s not going to stick,” he noted.
Big Ambitions Ahead
Multiplier’s long-term vision is bold: to build an AI-powered alternative to the Big Four accounting firms. For now, the focus is on acquiring high-recurring-revenue service businesses run by founders eager to embrace and help shape AI transformation.
“It’s like making a venture bet on a great leader,” said Pepper. “We’re looking for people who want to take their category to the next level.”
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