Hearth is an AI startup focused on automating revenue management for contractors, such as roofers and plumbers. The company is currently generating over $35 million in annual recurring revenue (ARR) and has more than 15,000 paying customers. Founded by Anthony Ghosn and Joe Lonsdale, and now led by CEO Misha Tsidulko, Hearth aims to save contractors from the burdens of administrative tasks like invoicing and lead management. With a new AI receptionist product that accomplished $1 million in ARR within a quarter without advertising, Hearth is shifting its identity from a mere tool to a supportive team member for its users. Contractors often struggle with clunky software that doesn’t meet their needs, leading to high failure rates within the industry. Misha Tsidulko highlights that over half of small business contractors fail by their fifth year, primarily due to inadequate revenue management tools. Hearth’s approach is more than just creating software; it’s about understanding the real pain points of contractors, many of whom are deeply connected to the trades. The company’s transition to an AI-driven platform aims to provide a more holistic solution, allowing contractors to focus on their craft rather than administrative tasks. Since its inception in 2016, Hearth started by offering customer financing and has since expanded its product suite to include digital estimates, invoices, payment processing, and marketing tools. The company has raised $61.8 million from notable venture capital firms and is rapidly growing, employing around 200 people. Hearth's vision is to become a key player in the $1 trillion market for small business contractors, positioning itself as a crucial partner in their success.