F2 AI Unveils as Independent Entity with $10 Million Funding, Pioneering AI in Private Markets

F2 AI Spins Out on Its Own with Significant Funding

F2 AI, Inc. has officially announced its separation from Arc Technologies, marking a significant moment in the landscape of artificial intelligence tailored for private market investors. This independent entity has successfully raised $10 million in an equity round backed by prominent investors like NFX, Left Lane Capital, and Y Combinator. The spin-out signifies not just a rebranding but also a robust opportunity to reshape how financial workflows are executed in the realm of private equity, commercial banking, and credit funds.

Originally, F2 was designed to enhance and automate the $10 billion debt placement efforts by Arc Capital Markets. As adoption soared among sophisticated institutional clients, the decision to transition into a standalone entity became clear. Not only does this independence enable F2 to scale more effectively, but it also aligns with their objective to deliver a speedier, more efficient experience to private market stakeholders.

As Don Muir, Co-Founder and CEO of F2, expressed, “F2 is building the technology I wished I had during my tenure in private equity and credit.” He emphasized that F2's AI is not merely a tool for automation; it is designed to strategize and execute in a capacity that legacy systems cannot match. This transformative approach is reported to decrease the time teams spend moving from diligence to decision-making by 60%.

At the heart of F2's innovation is its unique capability. The platform translates raw data from various sources, including Excel, PDF, and PowerPoint files, into actionable insights ready for auditing. This feature is anticipated to save considerable time and enhance the precision with which deal teams can operate. As a result, F2 stands as the only platform capable of offering comprehensive financial analysis across multiple formats with reliability and speed, meeting the critical needs of deal teams.

The recent funding will be directed towards supercharging the platform’s speed and reliability and recruiting top-tier AI engineers. Enhanced customer success strategies and customizable features will allow financial teams to adapt the platform overtly in accordance with their specific operational requirements, driving further adoption.

Scott Peters, a founding partner at RevTek Capital, praised F2's impact, pointing out that the firm is already leveraging the AI platform within its own workflows to optimize underwriting processes. According to Peters, “This isn’t mere hype — it’s a reality today. AI will revolutionize how deals in private credit are sourced and managed, and F2 is at the forefront of this evolution.”

The transition to an independent status has also been warmly welcomed by Arc's network of investors, with nearly 50 backers lending their confidence to F2's potential. Dan Ahrens, managing partner at Left Lane Capital, emphasized the organic emergence of F2 from addressing real-world challenges in Arc's business, indicating that this spin-out could significantly serve a larger market base.

F2’s clients will maintain priority access to Arc’s capital markets platform, thus providing a symbiotic relationship that benefits both parties. Collectively, they represent a combined capital pool nearing $200 million, poised to reshape the financial technology landscape effectively.

About F2

F2 is an intelligent platform tailored for private market investors, specifically in private credit and institutional finance. The firm emphasizes the acceleration of diligence and underwriting processes, ultimately assisting teams in evaluating opportunities at a notably faster rate. With thousands of transactions already to its credit, F2 is engineered to facilitate seamless collaboration while retaining historical data, thereby ensuring continual growth and success for its users.

Headquartered in New York City, F2 counts NFX, Left Lane Capital, and Y Combinator among its leading investors. Interested parties can learn more about F2 and its innovative approach to private markets at f2.ai.