In a strategic move to transform IT services through artificial intelligence, Thrive Holdings — the investment arm of prominent VC firm Thrive Capital — has teamed up with ZBS Partners to inject $100 million into creating Shield Technology Partners. This new platform has already acquired four established IT service providers: ClearFuze Networks, IronOrbit, Delval Technology Solutions, and OneNet Global.

Image source note: Image generated by AI, image licensed by MidJourney.

Shield Technology Partners aims to become an industry leader in AI-driven managed IT services, focusing on businesses that rely on technical support, cloud computing, and management software. Thrive Capital, founded 15 years ago by Josh Kushner, brings its expertise from high-profile investments in OpenAI, Databricks, and cybersecurity firm Wiz.

The venture capital world is increasingly targeting knowledge-intensive service sectors for AI integration. Shield represents Thrive Holdings' first major project in this space, deploying AI to enhance operational efficiency across its acquired companies. According to Anuj Mehndiratta, Thrive Capital's head of impact and data science, software engineers will be embedded within each portfolio company to develop standardized AI solutions.

"Our research revealed significant inefficiencies in how MSPs handle customer service," Mehndiratta explained. "AI agents can automate routine tasks like system reboots and password resets immediately, with plans to expand into sales and marketing optimization."

Jake Sloane of ZBS Partners noted their previous hesitation about IT service investments dissolved when they recognized AI's transformative potential. This shift mirrors broader trends — traditional PE firms and VCs are now channeling funds into professional services like accounting firms. Thrive Capital itself has co-invested in accounting ventures alongside Bessemer Venture Partners and General Catalyst.

Looking ahead, Thrive Holdings is preparing a $1 billion fundraising round to accelerate AI adoption across traditional service industries. Could this mark the beginning of widespread automation in business support functions? The success of Shield Technology Partners may provide early answers.

Key Points

1. $100M joint investment creates Shield Technology Partners platform
2. Acquired four established MSPs including ClearFuze Networks
3. AI solutions will automate support tasks and optimize operations
4. Reflects growing VC interest in automating knowledge work sectors
5. $1B follow-on funding round planned for broader AI integration