OffDeal, an emerging AI-native investment bank, has successfully closed a $12 million Series A funding round, led by Toronto-based Radical Ventures. The announcement, made by Co-founder and CEO Ori Eldarov, comes less than ten months after the company's Seed round, underscoring rapid investor confidence in its innovative approach to mergers and acquisitions (M&A) for small and medium-sized businesses (SMBs).
Ori Eldarov stated in a tweet, "Excited to share that @tryoffdeal has raised a $12M Series A to build the world’s first AI-native investment bank, less than 10 months after our Seed." The funding aims to further develop its platform, which leverages custom AI agents and big data to streamline the complex process of buying and selling small businesses. OffDeal's technology automates tasks such as deal sourcing, screening, creating promotional teasers, and managing non-disclosure agreements.
The company positions itself as the "Goldman Sachs for SMBs," targeting the lower middle-market, a segment often underserved by traditional investment banks. OffDeal's model blends advanced AI capabilities with human expertise, allowing a smaller team of bankers to manage a higher volume of deals and accelerate sales processes, with an aim to complete transactions in approximately four months. This hybrid approach seeks to provide Wall Street-level advisory services at a more accessible cost for small business owners.
According to Eldarov's tweet, OffDeal has already demonstrated significant traction, having "launched over 30 M&A sell-sides, and delivered numerous multi-million $ exits to our clients" this year. This rapid execution highlights the efficiency gains achieved through their AI-driven platform. The Series A capital will be deployed to expand its team of M&A advisors and engineers, further enhance its proprietary AI technology, and scale its marketing efforts to reach more small business owners.
The investment reflects a growing trend in the financial sector where artificial intelligence is increasingly adopted to enhance efficiency and decision-making. AI in investment banking is transforming areas such as data analysis, due diligence, financial modeling, and risk management. OffDeal's co-founders, Ori Eldarov, a former investment banker, and Alston Lin, an ex-Meta engineer, emphasize that while AI acts as a "copilot," human interaction remains crucial for successful deal closures.