In late 2022, former Stripe executive Noah Pepper launched Multiplier, initially focusing on developing software solutions aimed at tax accounting professionals. However, the advent of ChatGPT soon reshaped his vision of the industry’s potential.
“My initial approach was to build a traditional SaaS offering,” Pepper explained, “but after observing the transformative possibilities presented by artificial intelligence, I recognized a far greater opportunity in enabling accounting professionals themselves to become significantly more productive.”
Acting on this realization, Multiplier shifted strategy and acquired Citrine International Tax, a boutique firm specializing in cross-border tax accounting services. Multiplier integrated its proprietary AI tools within Citrine’s operational processes and immediately saw dramatic efficiency improvements, more than doubling Citrine’s profit margins due to reduced manual workload.
Encouraged by Citrine’s success, Multiplier pivoted fully to an ambitious new model: purchasing established professional service firms and streamlining their operations through extensive artificial intelligence enhancements. Now rebranded as Multiplier Holdings, the company has indicated ambitious future plans, recently announcing a total of $27.5 million raised across seed and Series A funding rounds. Ribbit Capital led the seed funding, while Lightspeed Venture Partners played a leading role in Multiplier’s recent Series A financing, alongside participation from SV Angel.
Multiplier’s approach represents a larger industry shift in venture capital, mirroring a private equity-like “roll-up” trend. This movement sees startups acquire traditional, people-driven service businesses, infusing them with cutting-edge AI technology to rapidly scale profitability and growth. Lightspeed, along with other investors including General Catalyst, Thrive, Elad Gil, and Khosla Ventures, has identified AI-driven roll-ups as a compelling investment area.
Justin Overdorff, a partner at Lightspeed, stressed the advantages of targeting smaller companies as acquisition targets. “Small professional firms tend to be naturally more agile in adapting to new technology,” said Overdorff. “If you approach larger established firms of sizeable scale, your adoption rate will likely be limited.”
Before its acquisition, Citrine operated with just two personnel. Under Multiplier’s ownership and technology integration, the firm not only boosted profit margins but also scaled its capacity and operational scope significantly.
Multiplier has its sights set beyond personal tax compliance, with Pepper expressing the intent to eventually challenge major institutions such as the Big Four accounting firms. To achieve this vision, Multiplier is actively seeking firms with strong recurring revenue streams led by individuals who embrace the potential of AI and are willing to co-develop customized technology solutions tailored to upgrade their operations. Pepper equated this strategy to a venture capital model, noting, “It’s really about finding outstanding leaders in their specialized fields and investing resources behind their growth with AI.”
