Treeline Raises $25M to Reinvent IT Services Model

Treeline is betting that IT services are overdue for a structural overhaul. With $25 million in new funding, the startup is positioning its AI-driven platform as a software-first alternative to traditional managed services models.

Rethinking how IT services run with an AI-native approach

The company, based in San Francisco, is building what it calls a “modern IT operating system” to replace the mix of tools and manual workflows that still run most IT environments.

“Basically every business in the world needs some form of IT management,” said Peter Doyle, CEO and cofounder, Treeline, in an interview with Fortune. 

Most companies, he noted, either build in-house teams that scale with headcount or rely on managed service providers, which often operate through a mix of people and tools cobbled together across ticket queues and point solutions.

Treeline is trying to change that starting point. Instead of layering software onto a services-heavy model, the platform puts a unified software and AI layer at the center, with technicians stepping in for oversight and higher-level decision-making.

In its announcement, the company described the approach as a shift away from “manual coordination and reactive ticketing” toward a system that runs continuously in the background and standardizes workflows across IT, security, and compliance.

It’s all starting to sound pretty familiar, isn’t it?

Where automation meets reality

It’s no secret that pressure on IT teams is only increasing by the day. Global IT spend is expected to reach nearly $6 trillion in 2026, while security threats are becoming increasingly complex and compliance requirements are becoming increasingly advanced. 

Treeline’s platform is designed to automate much of the routine work that typically fills IT queues. The company says its AI agents can “augment or directly resolve 98% of customer-submitted requests,” while also speeding up employee onboarding from 20 minutes to 2 minutes.

Still, the model is not about removing people entirely.

“What it takes is not being afraid to keep technicians and people in the loop,” Doyle said. “I’m not saying that we should replace technicians. We should empower them.”

That shows up in the platform’s structure. Lower-level tasks like password resets and routine troubleshooting are handled automatically, while specialists focus on more gnarly issues that require judgment.

A different starting point for IT: why Treeline thinks IT services haven’t kept up with innovation

The crux of Treeline’s argument is this: the way IT services are delivered today hasn’t kept pace with how companies actually operate.

“Managed services still operate much the way they did 20 years ago, built around manual coordination and reactive ticketing,” Doyle said in the company’s announcement. “That model creates enormous waste for companies.”

The thinking is to flip the model. Start with software and AI, then layer people in where they’re actually needed. The hope is that it will lead to faster, more consistent results without companies having to build out big internal teams just to keep things running.

Andreessen Horowitz leads investment funding to scale the Treeline platform

The funding, led by Andreessen Horowitz, will go toward scaling the platform, growing the team, and continuing to build out the product. Investors are really leaning into the idea that IT services might need a more fundamental rethink, not just small upgrades to what’s already there.

For companies juggling different tools, vendors, and rising demands, the appeal lies in fewer handoffs, fewer tickets, and less time spent tracking down shenanigans that should have been handled before anyone noticed.

As IT complexity and demand continue to climb, Treeline’s approach reflects a broader shift toward automation-first operations. Whether enterprises fully embrace that model remains to be seen, but the pressure to modernize is only accelerating.

AI is already moving from a helper to something more foundational within MSP operations. In one recent example, providers are embedding it directly into service desks and security workflows to automate responses and keep up with rising complexity. The reality is that teams are running out of room to rely solely on manual processes.