In the U.S. home services sector, marketing is often more trial and error than science. Contractors, HVAC technicians, and electricians routinely spend between 10% and 30% of their annual revenue on lead generation efforts, often relying on a mix of Yelp, Google Ads, or social media to keep phones ringing. But as the return on these platforms diminishes and frustration with pay-to-play systems mounts, a new category of marketing tech is gaining attention from both investors and service professionals. One of the newest entrants, Volca, has raised $5.5 million to become a contender.
Founded in late 2024 by Brendan Kazanjian, Brandon Rabovsky, and Jack Morton, Volca offers a full-stack AI platform designed specifically for home services businesses. Its primary product: an SMS-based referral engine that integrates with existing customer relationship management (CRM) systems to streamline customer communications, incentivize word-of-mouth referrals, and close the loop with payments.
An Approach Informed by Industry Experience
“As a kid, I spent summers hauling busted HVAC units and running electrical wiring through walls because I was small enough to fit,” Kazanjian wrote in a recent LinkedIn post. That firsthand experience informs Volca’s approach, which focuses on building tools for contractors with limited time and tech capacity. Rabovsky brings a go-to-market background and expertise in referral marketing. Morton, a mechanical engineer turned software lead, rounds out the founding team with technical execution.
Volca’s software is built to integrate directly into workflows contractors already use, such as scheduling, billing, and messaging systems like ServiceTitan. By embedding AI into these systems, the company aims to automate lead generation and post-sale engagement: tasks that are critical to growth but time-consuming to execute manually. Early results reported by the company suggest strong demand: customers like Shafer Heating and Cooling have reported over $160,000 in new sales in four months, with some businesses generating $70,000 in monthly referral-driven revenue.
Growing Demand, But Adoption Still Lags in the Trades
The home services sector is in flux. Homeowner spending is projected to hit $526 billion by early 2026, according to Harvard’s Joint Center for Housing Studies. Meanwhile, dissatisfaction with traditional advertising channels is rising
Volca isn’t alone in seeing an opportunity here. Competitors like NiceJob and ResponsiBid have also raised funding to tackle related challenges in lead generation and workflow automation. What sets Volca apart, according to its investors, is its focus on revenue infrastructure. “Volca is building a heat-seeking missile revenue engine for home services,” said Mahdi Raza, managing partner at Pathlight Ventures, which led the seed round.
The broader category (AI for trades) remains early. Adoption lags far behind sectors like healthcare or finance. Common barriers include poor data quality, lack of digital skills, and the absence of a clear operational model for AI integration. Volca’s success, like others in the space, may hinge less on the sophistication of its algorithms and more on ease of implementation and support.
For small businesses with little margin for error, onboarding a new platform is a significant commitment. “Our customers aren’t trying to build unicorns,” said Kazanjian in a Forbes interview. “They’re trying to build great businesses to support their families and service their communities.”
With funding from investors tied to Stripe, Gusto, and Plaid, Volca is hiring in New York and expanding its product beyond referrals to include broader communication, reviews, and lead nurturing capabilities.
