The New York startup is building an AI operating system distributed through managed service providers rather than selling directly to small businesses.
Hatz AI has raised $24 million in Series A financing backed by Nadia Partners, Vestigo Ventures and The Private Shares Fund.
The deal was led by Josh Schertzer, a partner at Nadia Partners and former CTO at Blackstone.
Founded by CEO Jimmy Hatzell and Aidan Kehoe, Hatz AI develops software that allows managed service providers, known as MSPs, to deploy and manage AI technology for business customers.
Its strategy focuses on a distribution channel already trusted by millions of small and medium-sized businesses.
Using IT Providers as an AI Distribution Network
Most smaller companies lack dedicated AI engineering teams.
They may want to automate business processes, but selecting models, connecting enterprise data and maintaining secure access can be complicated.
Many already depend on external IT providers to manage their software, devices and cybersecurity.
Hatz AI allows those providers to package and offer AI tools under their own brands.
The platform supports custom AI agents, workflow automation, multi-tenant administration and access to multiple foundation models.
It also allows providers to control usage, security policies and spending for individual customers.
A Different Go-to-Market Strategy
Instead of competing directly for every small business customer, Hatz sells through MSP partners.
The company reports that its partner network spans all 50 US states, nine Canadian provinces and nine countries.
It has also issued more than 15,000 AI certifications to builders and partners globally.
Its active MSP partner count has tripled year over year, while the company's workforce has expanded from 14 to nearly 60 employees.
The Commercial Opportunity
Hatz is betting that the trusted IT service provider will become an important channel for AI adoption.
Its platform gives MSPs a way to create new recurring service revenue while helping customers deploy AI without building their own infrastructure.
The financing will support engineering, AI research, model routing and partner enablement.
The challenge is maintaining a differentiated product as major software vendors introduce more integrated AI functionality.
For Hatz, the opportunity is to make advanced AI accessible to small businesses through the service relationships they already have.
Source: Hatz AI announcement (12 November).