F2 raises $14M seed to automate private credit deal workflows
What's the deal? F2, an AI-native platform for private credit funds, commercial banks, and private equity teams, has raised a $14M seed round, bringing its total funding to $24M. HighlandXDealroom has a profile for this one. Try Dealroom → led the round, with participation from Left Lane CapitalDealroom has a profile for this one. Try Dealroom →, NFX, Y Combinator, and Torch CapitalDealroom has a profile for this one. Try Dealroom →.
The platform automates deal screening, underwriting, and portfolio monitoring by turning a firm's accumulated deal history into a queryable knowledge asset. It runs a real Excel engine under the hood, preserving cell dependencies and formula logic so every number traces back to its source.
F2 is already deployed across more than 100 funds and banks globally.
Why now? Private markets represent a roughly $15T global asset class, yet most deal workflows still rely on manual spreadsheet reconciliation and fragmented data rooms. Firms capable of deploying billions spend most of their analytical time on data extraction rather than judgment.
F2 grew out of Arc, a capital markets platform whose lender customers needed better tools to review and underwrite debt deals. The system started as an internal tool and proved effective enough to spin out as a standalone company under founder and chief executive officer Don Muir.
The broader timing matters too: private markets are at an inflection point where firms that embed AI into sourcing and underwriting can build lasting competitive advantages.
What could go wrong? F2 operates in a domain where accuracy is non-negotiable — a single flawed number in an investment committee memo can derail a deal or worse. The company claims 95.25% accuracy on SpreadsheetBench, the industry standard benchmark for spreadsheet AI, but that still leaves room for error in high-stakes decisions.
Enterprise-grade data privacy is another hurdle. F2 says it uses zero-day retention and never trains on client data, but winning trust from large institutional investors takes time. Competing against entrenched workflows — and the horizontal AI tools already courting the same buyers — will test whether a vertical approach can scale.
The signal: F2's origin as an internal tool spun out of Arc's capital markets platform gives it something most early-stage AI startups lack: a product shaped by real deal flow before it ever sought outside customers. The investor syndicate reinforces that advantage — NFX and Y Combinator bring network-driven distribution expertise, while HighlandX and Left Lane Capital signal conviction in vertical fintech at scale. With 100-plus funds and banks already on the platform, F2's challenge now shifts from product-market fit to compounding its data moat before horizontal AI players move deeper into private credit workflows.
Read more: alleywatch.com
