INSUBCONTINENT EXCLUSIVE:
In late 2022, Noah Pepper, a former Stripe business lead for the Asia Pacific region, founded Multiplier, a startup that aimed to sell
software to tax accountants
told A Technology NewsRoom.The startup acquired Citrine International Tax, a boutique provider of cross-border tax accounting services, and
enhanced the firm with AI capabilities built by Multiplier.It quickly became apparent that the strategy was working
So, Pepper decided that instead of building software for accounting firms, Multiplier would acquire existing professional service businesses
and outfit them with its AI solution.Today, Multiplier, which is now called Multiplier Holdings, is announcing that it raised a total of
$27.5 million in seed and Series A financing
Capital with participation from SV Angel.Multiplier is part of a growing trend: startups acquiring existing service businesses and scaling
The PE-style roll-up strategy has recently gained popularity among VCs, with investors such as General Catalyst, Elad Gil, Thrive, and
In addition to Multiplier, Lightspeed has invested in three other yet-to-be-announced AI-powered roll-up companies.Overdorff is convinced
that this strategy is most effective when the startup buys small companies because they are more open to changing their existing processes
Multiplier, Citrine was a 12-person tax accounting entity
personal tax compliance to create an AI-powered competitor to the Big Four accounting firms.Pepper said that Multiplier is looking to
purchase high-recurring-revenue service firms helmed by people who are excited to integrate and help customize AI to take their businesses
