In the context of artificial intelligence (AI) gradually permeating various industries, Thrive Holdings — founded by the renowned venture capital firm Thrive Capital — has joined hands with ZBS Partners to invest $100 million in creating a new platform aimed at introducing AI technology into the IT services industry. This entity, named Shield Technology Partners, has successfully acquired four IT service companies, including ClearFuze Networks, IronOrbit, Delval Technology Solutions, and OneNet Global.
Thrive Holdings stated that Shield Technology Partners will become an "AI-driven managed IT services platform." These IT service companies, often referred to as managed service providers (MSPs), are responsible for providing businesses with tools such as IT support, management software, cloud computing, and more. Thrive Capital was established 15 years ago by Josh Kushner and gained fame for its investments in emerging companies like OpenAI, data analytics company Databricks, and cybersecurity company Wiz.
Image source note: Image generated by AI, image licensed by MidJourney.
Today, applying AI to traditional service industries, especially those heavily reliant on knowledge-based work, is becoming a new favorite among venture capital firms. Thrive Holdings' first project — Shield Technology Partners — aims to leverage AI technology to enhance the efficiency and quality of service provided by IT service companies. Anuj Mehndiratta, head of impact, data science, and product at Thrive Capital, said that Shield will send software engineers to each of the IT companies it invests in, assisting in developing a unified AI-driven solution.
Mehndiratta added: "We have studied the shortcomings of MSPs in customer service and found that combining IT services with AI will significantly boost efficiency." For example, AI agents can automatically restart computers or reset passwords, and in the future, they will help IT companies improve their sales and marketing capabilities.
Jake Sloane, co-founder of ZBS Partners, said that they had been cautious about investing in IT services in the past, but after realizing the potential of AI and other cutting-edge technologies, they decided to revisit this field. Additionally, many traditional private equity firms and venture capitalists are also tilting toward industries that rely on knowledge-based work, such as accounting. Thrive Capital has jointly invested in some accounting firms alongside companies like Bessemer Venture Partners and General Catalyst.
Currently, Thrive Holdings is preparing an initial fundraising round of approximately $1 billion to further promote the integration of AI with traditional services and enhance overall business efficiency.
