Reuters: Beacon Software Secures $250M for AI-Driven Acquisitions

Beacon Software, a holding company specializing in acquiring and transforming smaller software businesses with artificial intelligence, has secured $250 million in a Series B funding round, according to a Reuters report. Led by General Catalyst, Lightspeed Venture Partners, and D1 Capital, the round values Beacon Software at $1 billion and increases its total capital raised to $335 million since its launch last year. Beacon's strategy is characterized as an "anti-private equity" approach to AI roll-ups. Unlike traditional private equity models focused on cost reduction and rapid exits, Beacon emphasizes permanent ownership and reinvestment in long-term growth. The company targets profitable, niche software firms serving "Main Street" customers in sectors frequently underserved by major technology investors. Beacon acquires these businesses and leverages a central acceleration team to modernize their technology with an AI-powered software stack, automating back-office functions and accelerating product development. Founders are often incentivized to remain with their companies post-acquisition.