Wokelo raises $4M for AI-driven due diligence, sees customer traction in M&A, investing and consulting
Seattle-area AI startup Wokelo raised $4 million to fuel the development and growth of its technology that generates detailed due diligence reports to inform high-stakes corporate acquisitions, investments, and strategic decisions.
Investors in the seed round include Array Ventures, Geek Ventures, KPMG Ventures, Rebellion Ventures, Ahead VC, and Perpetual Venture Capital.
Wokelo, co-founded in 2022 by two former management consultants, Siddhant Masson (CEO) and Saswat Nanda (CTO), has 13 employees. It now has more than 35 customers, including private equity and venture capital firms, corporate development teams, investment banks, and management consulting firms.
The idea behind Wokelo is to reduce the grunt work associated with due diligence, creating more time for high-level analysis and human expertise, as GeekWire reported when we first covered the startup and tried its platform last year.
Wokelo’s platform takes in data from news sources, call transcripts, financial filings, fundraising data, research journals, podcasts, product reviews, and other data sources, and feeds it into a proprietary cognitive engine.
It then generates analyses that include company overviews, product insights, feature comparisons, recent news analysis, and industry landscapes, with citations. In addition, it creates sector reports and competitive analysis, and offers a secure data room where users can upload files.
There’s also a PowerPoint generator, and a Q&A chat function for further research.
Wokelo has carved out a niche for itself with its focus on private markets, where deep insights otherwise require extensive manual research.
However, an array of companies are offering AI for due diligence and research. They include Ansaranda, which focuses on deal-room logistics; Thomson Reuters, through its Clear Adverse Media unit; and AlphaSense, which focuses on public markets and publicly available data. Seattle-based PitchBook also offers data on private markets.
Wokelo’s seed round included a minority equity investment from the venture arm of KPMG LLP, the global audit, tax, and advisory firm, whose deal advisory team is using Wokelo to accelerate the process of due diligence and research.
Masson said the startup is encouraged by KPMG’s belief in its approach.
“It definitely gives us a lot of momentum, confidence and motivation,” Masson said.
In a news release about its Wokelo investment, KPMG noted that 42% of dealmakers who responded to its 2024 M&A mid-year survey said they were using generative AI as part of the dealmaking process.
“AI is enhancing our approach to both the front-end of dealmaking and post-close integration as it allows us to more swiftly and holistically identify new sources of value for our clients,” said Carole Streicher, who leads KPMG’s U.S. Deal Advisory and Strategy Service Group, in the news release.
The investment in Wokelo “exemplifies our commitment to harnessing cutting-edge technologies that drive tangible value for our clients,” added Andrew Matuszak, the KPMG Ventures managing director.
Wokelo plans to use the seed funding in part for product development, further expanding its capabilities and use cases. It also plans to build out its sales and support teams to grow its business and better serve its customers.
The company’s growth to date has been based on inbound interest, without marketing.
Including an earlier pre-seed round, the startup’s total funding to date is $5.5 million. Wokelo is getting close to profitability, Masson said, expressing confidence that they’re building a financially sustainable business.
The name “Wokelo” was derived from the phrase, “hello future of work.”