The IT services sector manages the technological backbone that keeps businesses running. Many organizations rely on Managed Service Providers (MSPs) to handle everything from cloud infrastructure to cybersecurity. Yet despite the critical importance of these systems to modern enterprises, in our view, most MSPs still operate with legacy processes and manual workflows that limit their ability to scale efficiently and deliver exceptional customer experiences.

At General Catalyst, we believe that applied AI can resolve high-impact pressure points in critical sectors like IT services. But real productivity transformation requires technologies to be embedded at the core of businesses, not just layered on top of existing systems. One pathway is through AI-enabled roll-ups, which can help automation get implemented at scale, resulting in efficiency gains that compound across ecosystems. 

That's why we're excited to continue our partnership with Titan, an AI holding company transforming IT services through its Augmented AI platform. We have backed Titan from its first round of financing, supporting the team as they built their initial product and worked with early MSP pilots. Today, we're announcing our investment in Titan as they execute their first platform acquisition of RFA, marking a pivotal moment in their mission to revolutionize how IT services are delivered.

Reimagining a Massive, Fragmented Market

The MSP market represents an enormous opportunity, estimated at over $80 billion in revenue in the US and $300 billion globally, supported by more than 40,000 MSPs in the US alone (130,000+ globally). This market is projected to grow significantly in the coming years, driven by two powerful trends: the overall expansion of IT service workflows as technology becomes increasingly critical to business operations, and the accelerating shift of enterprises outsourcing more of their IT services and infrastructure management to specialized providers.

However, the economics of traditional MSPs face a fundamental challenge: labor typically represents their largest cost, and much of this work remains manual and repetitive. Titan's approach is a paradigm shift from traditional PE-backed MSP consolidators. Rather than simply rolling up existing operations, Titan is building augmented AI tools that can increase a technician's effectiveness, creating orders of magnitude greater capacity while delivering a radically improved customer experience. This AI-enabled transformation has the potential to drive a 3x increase in net margins, fundamentally changing the unit economics of IT services.

Under Titan's ownership, RFA could deliver faster and higher-quality outcomes to its customers while Titan drives significant growth by creating a superior AI-enabled service offering. This acquisition represents an exciting step in Titan's vision to transform the MSP landscape through applied AI.

Building with Purpose and Expertise

Founders Saurin Patel and David Heffernan stand out to us as having a rare combination of AI product expertise and deep understanding of tech-enabled services. Saurin helped launch MyAI, Snap’s LLM-powered chatbot, and draws on his machine learning experience at Twitter to bring sharp insights into how AI can transform user experiences at scale. David launched Hightouch’s AI Insights offerings and led product for Scale AI’s marketplace, where he equipped 100,000 workers with an AI optimization system, developing deep expertise in enhancing human workflows with technology.

“We believe the future of IT services isn’t just AI or people. It’s the combination of the two. Our mission is to empower the humans behind the screen with AI that makes them faster, smarter, and more strategic. This funding and our acquisition of RFA, marks the first step in building a new kind of MSP: one that blends deep, service-focused expertise with the scale and tech DNA of a software company.” -Saurin Patel

The team has assembled experienced advisors who bring decades of MSP industry expertise, including Jason Magee, former CEO of ConnectWise and current CEO of Cynet, and Bob Guilbert, former COO of ECI. The engineering team is made up of individuals with experience at Scale AI, Google, MIT, and Stanford. We see this combination of AI-native founders with seasoned industry veterans positioning Titan to navigate both the technical complexities of building effective AI tools and the operational realities of transforming established MSP businesses.

A Vision for True Technology Partnership

Titan's ultimate goal extends far beyond operational efficiency. They're working to transform MSPs from basic outsourced IT support providers into true technology partners for their customers. By augmenting human technicians with AI capabilities, Titan aims to enable MSPs to move beyond reactive support to proactive strategic guidance, helping their clients leverage technology as a competitive advantage rather than simply maintaining it as a necessary cost center.

This transformation represents exactly the kind of applied AI opportunity we seek at General Catalyst, using purpose-built technology to solve real, high-friction problems in massive industries while creating lasting value for all stakeholders. We're thrilled to partner with Saurin, David, and the entire Titan team as they build the future of IT services, one augmented technician at a time.