How AI Software May Help MSPs to Automate Request for Proposal (RFP) Responses And More
Despite the artificial intelligence (AI) market hype, I haven’t seen too many generative AI investment opportunities that warrant Channel Angels’ attention.
Sure, we’re all familiar with the rising valuations of OpenAI and Anthropic, and surging revenues at hardware provider Nvidia. But we’ve also seen:
Mixed results from software platforms such as Microsoft Copilot;
downright disappointing results for heavily hyped efforts such as Apple Intelligence; and
no customer buzz involving AI PCs from all of the major hardware manufacturers.
Say Hello to IRIS
Ben Hills, CEO, Iris
Still, there are signs of progress in the startup AI software market. Chief among them: Take a look at IRIS, a “collaborative platform that gets more useful the more often that people use it,” according to the New York-based startup.
In some ways, IRIS sounds like an AI documentation platform that could potentially disrupt IT Glue (owned by Kaseya). But take a closer look, and IRIS could be so much more.
How so? The software allows you to create content or upload existing content into a so-called Knowledge Map. Example Knowledge Maps, according to IRIS, include:
Procurement resources: Contract templates, RFP responses, security documentation (i.e SOC2 report), privacy policies, GDPR statements and more
Marketing content: Webinar transcripts, blog posts, email copy, attribution data.
Product requirements: User stories, acceptance criteria, QA checklists, user feedback.
Sales collateral: Proposals, pitch decks, RFP responses, meeting transcripts.
Once you create and populate a Knowledge Map with your content, you can ask questions by chatting with tagged content, generate new documents, and create presentations, IRIS asserts. Among the prime use cases: Iris allows users to respond to RFPs (requests for proposals) and security questionnaires in an automated and rapid way, according to early adopters such as Class Technologies.
Iris Raises Funding, And…
True believers in Iris include Rewst CEO Aharon Chernin, along with investment firms such as Florida Funders and Naples Technology Ventures. Through Florida Funders, multiple Channel Angels participated in the Iris funding round, which was announced in February 2025. Fast forward to March 2025, and Iris CEO Ben Hills celebrated an office ribbon cutting in Manhattan, New York.
Looking ahead, Channel Angels sees numerous Iris use cases for MSPs. But that’s not all. This is a general-purpose AI platform that could help businesses of all sizes and backgrounds respond to more RFPs far more rapidly … and so much more.
Additional AI-related Investments
Meanwhile, Channel Angels continues to maintain investment stakes in several AI-related startups. Examples include:
Lightmatter, a unicorn that develops power-efficient processors to run cloud-scale AI applications;
RIOS Intelligent Machines, which develops AI-powered robots for factory, warehouse & supply chain automation;
XGen AI, which specializes in Hyper-personalized eCommerce driven by AI; and
Ybot, a multilingual, voice-activated autonomous work assistant.
Who Is Funding MSP Software Startups?
Also of note: The number of investor groups focused on MSP software startups continues to grow. If you’re entrepreneur seeking funding for a channel-centric technology startup, potential names to know include…
Bellini Capital: Founded by ConnectWise veteran Arnie Bellini, this investment firm focuses on cybersecurity, education and conservation.
Channel Angels: Yes, that’s us. You can apply for funding here.
Lookout Ventures: The VC invests in companies that are anywhere from pre-revenue to $1 million in annual recurring revenue (ARR). Lookout writes checks of $255,000 to $2 million – so the VC can lead, co-lead, or follow in investment rounds. When Lookout lead rounds they often, but not always, ask for a board seat to support the startup. Key names to know include Will Rayner.
Top Down Ventures: Led by multiple MSP industry veterans, Top Down helps startups scale from under $1 million in annual recurring revenue (ARR), while also increasing their valuation multiple along the way. Key leaders include Joel Abramson, Chris Day and Mark Scott.
David Bellini and Adam Slutskin: The CyberFox executives are well-known for investing in startups across the MSP vendor community.
While most Venture Capital and Angel Investor networks don’t have MSP market knowledge, the folks above built their careers in and around the MSP community. And in many cases, they pioneered the MSP market.
We’ll be watching to see if or how Iris pioneers a few of its own markets…