Hatz AI Raises $24M to Expand Its Enterprise AI Platform for MSPs

Hatz AI secured $24 million in Series A funding to expand its enterprise AI platform for managed service providers (MSPs). Led by Nadia Partners, the round included Vestigo Ventures and The Private Shares Fund. Josh Schertzer, a partner at Nadia Partners and former CTO at Blackstone, spearheaded the investment. Hatz AI currently collaborates with thousands of MSPs spanning all 50 US states, nine Canadian provinces, and nine other countries, facilitating access to millions of small and medium-sized businesses.

Active MSP partnerships surged more than threefold compared to the previous year, while revenue saw even greater growth. The team expanded from 14 to nearly 60 employees.

Hatz AI offers an AI operating system tailored for MSPs, enabling them to develop and deliver white-labeled AI products. Key features include custom workflows, agents for business customers, multi-tenant governance, automated routing between popular foundation models, and enhanced control over customer data, security, and expenditure. This channel-oriented approach positions MSPs as trusted partners in AI adoption for businesses.

The funding will support engineering infrastructure, automated model routing, AI benchmarking tools, and the development of an in-house software factory. Additionally, Hatz AI plans to establish a Forward Deployed Engineer team to work closely with MSP partners, focusing on platform optimization and the deployment of new workflows. One notable project, the SMB1 benchmark, evaluates task complexity, cost, and model efficiency to guide more economical choices.

As SMBs seek accessible and secure AI solutions, MSPs can address this demand. Nadia Partners believes Hatz AI is well-positioned in the channel-delivered AI space, emphasizing its relevance in supporting MSPs rather than competing with them. The company is also exploring new office space in New York and expanding its workforce in engineering, research, and partner-facing technical roles.

As AI becomes more prevalent, Hatz AI anticipates ongoing challenges in governance and cost management, aiming to ensure long-term adoption among SMBs through effective partner collaboration.