Beacon, a holding company using artificial intelligence to modernize small, profitable software businesses, has secured $250 million in Series B funding, valuing the company at $1 billion. The round was led by General Catalyst, Lightspeed Venture Partners, and D1 Capital, bringing Beacon’s total funding to $335 million since its launch last year.
Founded by Nilam Ganenthiran, former President of Instacart, and Divya Gupta, ex-Partner at Sequoia Capital, Beacon acquires niche, self-funded software firms serving “Main Street” industries such as youth sports, campgrounds, and local manufacturers. The company purchases new businesses roughly every two weeks, upgrading them with AI-driven tech stacks to automate operations, accelerate development, and boost long-term growth.
Positioning itself as an “anti-private equity” firm, Beacon focuses on permanent ownership and reinvestment rather than quick exits. Profitable as a group, Beacon plans to use the new capital to expand acquisitions and enhance its central AI platform.
