Latest news with #OpenAI-powered
Yahoo
8 hours ago
- Business
- Yahoo
CPA plans more than $500m acquisitions investment
Crete Professionals Alliance (CPA), an accounting platform supported by Thrive Capital, is looking to invest more than $500m to acquire US-based accounting firms over the next two years. The initiative aims to implement OpenAI-powered AI technology to increase operational efficiency, reported Reuters citing company executives. Established in 2023, CPA has rapidly expanded, now reporting more than $300m in annual revenue and incorporating more than 20 accounting businesses. This growth is said to have positioned it as one of the fastest-growing firms in the US accounting sector. The company has a workforce of 900 across 17 offices, and also has a presence in Asia. The firm's expansion has been fuelled by significant investment from backers including Thrive, ZBS Partners, and Bessemer Venture Partners. CPA plans to leverage both its cash flow and external capital to fund further acquisitions, taking majority stakes in local firms and bolstering them with support in recruitment and administration. Co-founder of Crete PA and ZBS Partners, Jake Sloane, has a history of developing roll-up businesses across various industries. In partnership with Thrive since May 2024, he has focused on harnessing AI to empower accountants to grow their client base and manage increased workloads. Thrive's in-house tech team, in collaboration with OpenAI, is crafting customised tools for the accounting industry, ranging from data mapping to memo writing. Reuters reported that Bennie Lewis, president at Assurance Dimensions, a Crete-owned firm in Tampa, Florida, highlighted the practical benefits of AI in audit testing, noting significant time savings for his team, enabling more focus on client engagement. Sloane emphasises that their roll-up strategy differs from conventional private equity models by allowing practices to retain a minority equity stake, ensuring that original shareholders stay actively involved. Kareem Zaki, a partner at Thrive, pointed out the necessity of going beyond merely selling software to add value in the intricate accounting sector, the news publication reported. Zaki stated: "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." According to Reuters, Sloane expressed that the objective is not to supplant accountants with AI, but rather to augment service quality while human professionals foster trusted client relationships. Sloane said: "I don't believe AI is something that will fundamentally eradicate the need for accountants." "CPA plans more than $500m acquisitions investment" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
2 days ago
- Business
- Yahoo
Thrive-backed accounting firm Crete to spend $500 million in AI roll-up
By Krystal Hu -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," Sloane said. 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.
Reuters
2 days ago
- Business
- Reuters
Thrive-backed accounting firm Crete to spend $500 million in AI roll-up
June 4 - 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," Sloane said. 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.
The Star
2 days ago
- Business
- The Star
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.)
Yahoo
2 days ago
- Business
- Yahoo
Thrive-backed accounting firm Crete to spend $500 million in AI roll-up
By Krystal Hu -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," Sloane said. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
