F2 Raises $14M to Eradicate the Handbook Bottleneck Slowing Non-public Credit score Deal Groups – AlleyWatch

Non-public markets traders handle a roughly $15T world asset class, but the workflows powering most deal choices nonetheless rely upon handbook spreadsheet reconciliation, fragmented information rooms, and institutional information that walks out the door each time a senior analyst strikes on. The result’s a structural inefficiency the place corporations able to deploying billions in capital spend the vast majority of their analytical bandwidth on information extraction moderately than judgment – and the place the price of a sluggish or missed underwriting choice compounds throughout each deal cycle. Into this hole steps F2, an AI-native platform that embeds immediately into the deal workflows of personal credit score funds, business banks, and personal fairness groups, turning a agency’s accrued deal historical past right into a persistent, queryable information asset that improves with each transaction. The platform combines an Excel-native monetary evaluation engine with agentic workflow automation throughout screening, underwriting, and portfolio monitoring, reaching 95.25% accuracy on SpreadsheetBench – the trade customary benchmark for spreadsheet AI – and is already deployed throughout 100+ funds and banks globally. Not like horizontal AI instruments that approximate monetary evaluation, F2 runs an actual Excel engine beneath the AI, preserving cell dependencies, method logic, and full information lineage so each quantity in an IC memo traces again to its authentic supply.

AlleyWatch sat down with F2 Founder and CEO Don Muir to study extra in regards to the enterprise, its future plans, and up to date $14M seed spherical that brings whole funding to $24M.

Who have been your traders and the way a lot did you increase?

F2 raised $24M in whole fairness capital, together with a $14M seed spherical. The seed spherical was led by HighlandX, with participation from Left Lane Capital, NFX, Y Combinator, and Torch Capital.

Inform us in regards to the services or products that F2 presents.

F2 is a compounding intelligence platform for personal markets traders. It delivers end-to-end agentic workflow automation throughout:

• Screening
• Underwriting
• Portfolio monitoring

The platform transforms a agency’s deal historical past right into a persistent, queryable information asset and evaluates new alternatives utilizing full contextual information (precedent offers, information rooms, market information). The platform is powered by an Excel-native monetary evaluation engine and consists of instruments like Adam (AI deal affiliate), Deal Intelligence, and Institutional Information.

What impressed the beginning of F2?

F2 was based to resolve the wants of Arc’s lender clients as they reviewed and underwrote debt offers on the Arc capital markets platform.The system was initially an inside agentic underwriting software, developed to deal with operational ache factors firsthand. After proving efficient, Don Muir introduced it as a standalone business alternative, resulting in the creation of F2 with backing from prior traders.

As well as, non-public markets are at an inflection level, the place corporations embedding AI into sourcing, underwriting, and monitoring can construct a structural aggressive benefit over time.

How is F2 completely different?

F2 differentiates itself by: doing the next:

• Embedding immediately into deal workflows utilized by funding groups.
• Delivering custom-made deployments for every enterprise.
• Utilizing a multi-model, LLM-agnostic structure (Opus, ChatGPT, Gemini, and proprietary instruments).
• Reaching as much as 60% higher efficiency vs. generic brokers and 5x token effectivity.
• Offering enterprise-grade information privateness (zero-day retention, no coaching on shopper information).

What market does F2 goal and the way large is it? 

F2 targets:

• Non-public credit score funds
• Business banks
• Extra broadly, non-public markets traders

The corporate operates inside the world non-public markets ecosystem, a roughly $15 trillion asset class, the place a lot of the funding course of stays handbook and under-digitized. F2 is already deployed throughout 100+ funds and banks globally.

What’s your online business mannequin?

F2 is an enterprise AI platform for personal markets traders (non-public credit score, PE, business banking), offering workflow automation throughout the deal lifecycle. F2 sells an enterprise SaaS platform that helps funding groups transfer sooner, standardize decision-making, and enhance outcomes throughout the deal lifecycle.

• It gives end-to-end workflow automation throughout key funding processes – screening, underwriting, and portfolio monitoring.
• The platform embeds immediately into corporations’ present deal workflows, moderately than sitting as a standalone software.
• It converts uncooked deal supplies and historic transactions into structured evaluation and a persistent “institutional information” layer, which compounds worth over time.

How are you making ready for a possible financial slowdown?

F2 clients want expertise no matter market route.

When capital markets have been scorching, the velocity to underwrite and time to time period sheet have been necessary levers to win offers in a aggressive market. F2 permits our shoppers to maneuver sooner. After they inevitably decelerate – danger mitigation, and proactive danger monitoring change into key. In that case, F2 helps determine danger sooner and extra successfully.

What was the funding course of like?

F2 had early backing from about 50 traders tied to Arc. It has then continued to lift capital, together with a latest fundraise tied to robust market demand for vertical AI in finance.

Funding has been largely pushed by our credibility and direct product-market match inside non-public credit score workflows.

What are the largest challenges that you simply confronted whereas elevating capital?

The most important problem is shifting investor thesis on the applying layer within the period of AI.

Will frontier labs win, or will vertical AI software program? It has change into more and more clear all through our course of that the market believes that in complexly regulated areas like finance and healthcare, the place “final mile” accuracy issues, “ok” generic horizontal LLMs aren’t sufficient. It has change into apparent that professional vertical options, like F2,  are then essential.

What elements about your online business led your traders to write down the verify?

Craig Driscoll, who led the funding for HighlandX stated, “Non-public markets are at an inflection level. The corporations that construct AI into the core of how they supply, underwrite, and monitor will compound a bonus that turns into structural over time.” What units F2 aside is its means to embed immediately into deal workflows and match naturally into how severe funding groups function.”

F2 has been in a position to display actual traction and a transparent path to sustainable development. On this setting, there’s a better premium on capital effectivity and powerful unit economics, and we constructed the enterprise with that self-discipline from the beginning. Mixed with a differentiated product and a centered workforce, that gave traders confidence in each our near-term execution and long-term upside.

What are the milestones you intend to realize within the subsequent six months? 

Within the subsequent few months we hope to chive the next:

• Scaling deployments throughout credit score funds and banks.
• Increasing the product suite.
• Rising our engineering and enterprise groups globally.

What recommendation are you able to supply firms in New York that don’t have a contemporary injection of capital within the financial institution?

The principles of the sport have modified within the final 12 months, and the bar on development and income have elevated as new AI native firms have proven that it’s potential to construct large firms a lot sooner. Development and scale aren’t the one metrics although: sturdiness and defensibility is crucial. Meaning proving excessive utilization, sticky clients, and deep workflow. Tomorrow’s firms aren’t simply constructing merchandise, they’re delivering product augmented service. Meaning aligning and tailoring product to your finish buyer not simply giving them a turnkey answer.

The place do you see the corporate going now over the close to time period?

Within the close to time period, F2 is concentrated on scaling adoption throughout main lenders globally, whereas persevering with to deepen its place inside non-public credit score and broader non-public markets. The corporate goals to change into core infrastructure for funding groups, embedding AI immediately into how corporations supply, underwrite, and handle offers. On the similar time, F2 will proceed increasing its platform capabilities and enterprise footprint, reinforcing its position in shaping the following technology of credit score and funding workflows.

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