Beacon Software has raised $250 million in a Series B funding round led by General Catalyst, Lightspeed Venture Partners, and D1 Capital. This funding values the company at $1 billion and brings its total capital raised to $335 million since its launch last year. Beacon focuses on acquiring smaller software businesses in niche markets, particularly those that serve local customers—like youth sports leagues and campgrounds. The company's strategy involves using AI to enhance these businesses, aiming for sustainable growth rather than quick exits. Founded by Nilam Ganenthiran, a former president at Instacart, and Divya Gupta, previously with Sequoia Capital, Beacon aims to buy a profitable software company every two weeks. These acquisitions typically generate under $20 million in annual recurring revenue but maintain consistent profitability. The broader venture capital community is showing interest in AI-driven roll-up strategies, particularly in sectors like professional services, although the long-term performance of these models remains uncertain.