Model ML Secures $75 Million in Funding to Revolutionise Investment Banking
(Nov 24): Model ML, an innovative artificial intelligence startup, has successfully raised a substantial $75 million (RM310.5 million) in its quest to devise cutting-edge technology aimed at alleviating the laborious tasks traditionally undertaken by investment bankers.
This encompasses an array of responsibilities, from crafting pitch decks to compiling intricate due diligence reports.
The funding round, which attracted considerable attention from investors, was spearheaded by FT Partners and included notable participants such as Y Combinator Inc., QED Investors, 13Books Capital, and LocalGlobe, as announced on Monday (Nov 24).
Established merely a year ago and operating out of London and New York, Model ML had previously raised $12 million in an earlier financing effort and has opted not to disclose its valuation for either funding phase.
According to CEO Chaz Englander, the startup’s pioneering technology is designed to expedite the monotonous tasks that consume invaluable hours for a multitude of Wall Street professionals.
For example, its agentic AI system empowers private equity partners to generate an initial draft of their investment committee memos directly from an email, a feat that typically requires a day of sifting through marketing materials and databases.
Englander, a 33-year-old entrepreneur, co-founded Model ML with his younger sibling, Arnie, who is 28. Prior to this enterprise, he successfully launched and sold a series of startups, including Fat Llama, which garnered backing from Y Combinator during Sam Altman’s presidency.
Model ML’s advisory board features seasoned banking professionals, including former HSBC Holdings plc chief Noel Quinn and ex-UBS Group AG chairman Axel Weber. According to Englander, this prestigious backing has already enabled the startup to secure clients on Wall Street and within significant consulting firms.
The company currently employs a team of 45 individuals and aims to utilise the newly acquired funds to enhance its onboarding teams in San Francisco, New York, London, and Hong Kong, as well as to recruit additional AI engineers, as stated by Englander.
Despite its origins in the United States, Englander noted that the engineering team has been partially relocated to London for cost efficiency, specifically to the King’s Cross area, which is home to notable firms like Google, DeepMind Technologies Ltd, and Meta Platforms Inc.
The burgeoning field of artificial intelligence has given rise to countless startups promising to disrupt various industries. However, investor sentiment has grown wary regarding the technology’s potential to deliver exceptional returns in the short term.
A recent surge in tech stocks, fueled by Nvidia Corp CEO Jensen Huang’s reassurances that the AI market isn’t merely a bubble, quickly waned as market concerns resurfaced.
Nonetheless, this scepticism has not deterred entrepreneurs or venture capitalists from vigorously pursuing substantial opportunities within the AI sector.
Source link: Theedgemalaysia.com.
