Hatz AI raises $24M to sell AI to small firms through their IT providers

New York-based Hatz AI, which builds tools that let managed service providers (MSPs) sell AI to small businesses, has raised a $24 million Series A, according to CRN, as relayed by Techmeme. Nadia Partners led the round, according to coverage of the company’s announcement.

Who put in the money and what it pays for

Per the company’s announcement as published by Pulse 2.0, Josh Schertzer, a partner at Nadia Partners and a former CTO at Blackstone, led the deal. Vestigo Ventures and The Private Shares Fund also took part. The reports we read do not give a valuation, the total raised to date or investor stakes.

Hatz says the money will go to deepening its model-routing technology, expanding benchmarking, building internal software-factory infrastructure and AI optimization work, and growing the partner network. It is hiring forward-deployed engineers, AI researchers and AI optimization staff. According to the same account, headcount grew from 14 to nearly 60, with the team expanding in New York’s Flatiron District.

A platform that MSPs rebrand and resell

Hatz sells only through MSPs, the IT firms that already run technology for small and medium-sized businesses. The platform lets a provider package AI under its own brand. Features listed include governance across multiple customer environments, custom AI workflows and shared workspaces, automatic routing between foundation models, configurable AI agents, and tools for tracking AI spend, security and deployments.

The company says its partners include thousands of MSPs across all 50 U.S. states, nine Canadian provinces and nine countries overall. It says active MSP partners tripled year over year and that revenue grew faster than the partner count. These are the company’s own figures and have not been independently verified.

CEO and co-founder Jimmy Hatzell said that “technology alone won’t make a business AI native – SMBs need help from people they trust.” Schertzer said Hatz “has unlocked the exact mechanism required to drive AI adoption across Main Street.”

A channel bet that has grown from a small seed round

The round fits a strategy visible in Hatz’s earlier moves: reach small businesses through the IT provider they already pay, rather than selling to each one. In January 2024, CDO Magazine reported that Hatz had raised $2.5M to help MSPs deliver AI as a service, so the new round is roughly ten times that figure. Hatz has since launched a product called Hatz Activate, which, according to IT Brief, is meant to help MSPs scale AI rollouts to their clients.

The channel approach also draws in larger vendors. A separate report on a partnership between OpenText and Hatz AI describes it as a route for MSPs to real AI revenue, which suggests Hatz is positioning itself as the layer that sits between model providers and the small-business end customer. CRN’s summary quotes the company’s pitch that small businesses are trying to become AI-first or AI-native and find it very hard to do without help.

What the announcement does not settle

The pitch rests on MSPs being willing to take on AI resale as a new line of business, and on small businesses paying for it. The reports give no revenue figure, customer count at the end-business level, pricing or churn, so the claim of faster revenue growth than partner growth cannot be checked. Nor do they say how Hatz’s multi-model routing compares with what MSPs could assemble from model vendors’ own business plans.

For MSPs, the practical change is access to a ready-made, white-label AI stack with governance and cost controls built in. For small businesses, the offer is AI delivered by a provider they already know. Whether that is enough to separate Hatz from rivals targeting the same channel will depend on results the company has not yet published.