Why Andreessen and Bain Backed a Self-Described ‘Zendesk Killer’

Automating customer service has been among the most popular applications of artificial intelligence models, and investors have pumped about $1 billion into six key startups developing them. Now, a seventh is throwing its hat into the ring.

San Francisco-based startup Pylon has raised $31 million in a fundraise co-led by Andreessen Horowitz and Bain Capital Ventures at a valuation in the hundreds of millions of dollars, according to a person with knowledge of the figure.

Pylon tries to differentiate itself by specifically targeting businesses that sell to other businesses, rather than consumers, meaning the AI must handle more complex interactions, said co-founder and CEO Marty Kausas. For instance, Pylon’s customers often get customer-service inquiries through a combination of Slack, WhatsApp and Discord channels, in addition to email, where consumers would typically send their support requests, he said.

The 50-person company currently serves over 760 business customers including AI startups like Cognition, Cartesia and ElevenLabs, Kausas said.