Thrive-backed accounting firm Crete to spend $500 million in AI roll-up
Jake Sloane and Frank Zhang, co-founders of Thrive Capital-backed accounting firm Crete Professionals Alliance, pose for a picture in Crete's office in Tampa, Florida in this handout image taken in June 2025. Crete PA/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES
-Crete Professionals Alliance, an accounting platform backed by Thrive Capital, plans to invest over $500 million to acquire U.S.-based accounting firms in the next two years, and equip them with OpenAI-powered artificial intelligence technology to boost efficiency, company executives told Reuters.
Crete PA is the latest example of how venture capital firms are going after traditional industries and funding a buying spree to transform local businesses with AI in a roll-up play, from healthcare to property management.
Founded in 2023, the company has grown to over $300 million in annual revenue with over 20 accounting businesses, making it one of the fastest-growing accounting firms in the U.S. Crete now has 900 employees across 17 offices, and operations in Asia.
The firm has raised a few hundred million from investors such as Thrive, ZBS Partners and Bessemer Venture Partners. It plans to use its cash flow and external capital to fund more roll-ups, through which it acquires majority stakes in local firms and supports them with recruiting and administrative work.
Jake Sloane, co-founder of Crete PA and ZBS Partner, has previously built roll-up businesses from veterinary to plumbing. Believing AI tools could help accountants expand their customer base and take on more workloads, he partnered with Thrive to take advantage of the tech investor's expertise and network in May 2024.
Since then, Thrive, known for its big bets in Silicon Valley companies such as Stripe, OpenAI and Databricks, has its in-house tech team working with OpenAI to build customized tools and models for the accounting industry, from data mapping and memo writing.
Bennie Lewis, President at Assurance Dimensions, one of Crete-owned accounting firms in Tampa, Florida,said that in audit testing, the AI tools saved his team hundreds of hours every month, freeing them up for more client-facing work.
Sloane said the roll-up diverges from the traditional private equity approach in allowing accounting practices to maintain a minority equity stake in the local business, ensuring original shareholders remain actively involved.
Traditional services like accounting have become a hotbed for venture capital investment, which is typically known for ambitious bets on nascent startups in Silicon Valley.
Kareem Zaki, a partner at Thrive, said it takes more than selling the software to create value in a complex industry like accounting, so the fund decided to pursue roll-ups that give it more ownership and control of the businesses.
"As full-stack operators of the accounting firm, we can take all the software elements, the operational elements, and be able to flow that through into the end customer experience," Zaki said.
Sloane said the goal is not to replace accountants with AI, but to use technology to enhance service quality, while humans build trusted relationships.
"I don't believe AI is something that will fundamentally eradicate the need for accountants," Sloanesaid.
The industry has faced challenges such as an accountant shortage. Technology has played a significant role in enhancing productivity in the past, such as software tools like QuickBooks.
Thrive Capital is not alone in pursuing roll-ups of services in the hope of AI automation. General Catalyst, another VC firm, is also creating firms that buy companies in professional services, including its accounting firm Accrual.
Those investors believe generative AI technology can boost profitability and scalability for service businesses, especially those reliant on knowledge work.
While accounting firms have been popular targets for private equity, analysts say it will take time to see if they can deliver the higher returns expected for venture capital investments on the heels of AI automation.
(Reporting by Krystal Hu in New York; Editing by Lincoln Feast.)
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