F2 Spins Out of Arc with $10 Million Equity Round, Emerging as the AI Leader in Private Markets

Backed by top Arc investors, F2's spin-out is scaling an AI platform already powering leading private credit funds, banks, and PE funds

NEW YORK, Sept. 16, 2025 -- F2 AI, Inc. ("F2"), the new standard in AI for private markets investors, today announced its official launch as an independent company, spinning out from Arc Technologies. Backed by an oversubscribed funding round led by Arc's existing investors including NFX, Left Lane Capital, and Y Combinator, the spin-out brings Arc and F2's combined capital raised to nearly $200 million. The show of support signals strong conviction in F2's momentum and potential to deliver AI-native infrastructure for modern finance teams across private credit, private equity, and commercial banking.

Originally built to automate Arc Capital Markets' ~$10 billion debt placement business, F2 has become the AI platform of choice for dozens of the world's leading private credit funds, commercial banks, and private equity teams. As demand from institutional clients increased, it became clear that F2 required independence to scale and serve the broader market. F2 is now an independent company, with a mission to bring speed and efficiency to the private markets. 

"F2 is building the technology I wish I had during my days in private equity and private credit. Just as Bloomberg transformed investing in the public markets, F2 is transforming how private market investors underwrite, analyze, and execute deals," said Don Muir, Co-Founder and CEO of F2. "Our AI doesn't just automate manual work; it strategizes, reasons, and executes in ways that legacy software can't. That's why we're seeing adoption from the most sophisticated teams in private credit, banking, and private equity."

At the core of F2's differentiation is its ability to convert raw excel, PDF and powerpoint files from data rooms into structured, audit-ready insights, unlocking significant time savings. Built specifically for private markets investors, it's the only platform that delivers full-fidelity financial analysis across all common formats, with the speed, context, and precision deal teams require. As an LLM-agnostic agentic model, F2 provides a more accurate and customizable experience for users across finance workflows. Using F2, deal teams are moving from diligence to decision 60% faster. 

The new capital will be used to improve the speed, accuracy and stability of the platform, hire top AI engineers, and scale the enterprise sales motion. Investing in customer success, forward deployed engineering, and customizable product features will allow deal teams to tailor the platform to their firm's unique needs. 

The funding behind F2's spinout is a clear vote of confidence from nearly 50 of Arc's longtime investors in its potential as a standalone company. The platform is already trusted by dozens of top-tier deal teams across private credit, private equity, and commercial banking and has been battle-tested in real-world underwriting and diligence across thousands of deals.

"F2's agentic AI is a game-changer," said Scott Peters, Founding Partner at RevTek Capital. "We're already using F2 to streamline our underwriting workflows and unlock faster, deeper diligence across our pipeline. This isn't hype—it's happening now. AI will fundamentally reshape how deals are sourced, underwritten, and monitored in private credit. F2 is leading that shift."

"We've been impressed by the discipline and focus of the Arc leadership team," said Dan Ahrens, Managing Partner at Left Lane Capital and Board Member of both Arc and F2. "F2 emerged organically from solving real challenges in Arc's business, and it became clear the platform could serve a much broader market. We are proud to support the spin-out and help the team build a durable company that advances how institutional finance operates."

F2 customers will continue to receive preferred access to Arc's capital markets platform, while Arc's network of lenders benefits from AI-powered underwriting on F2. Together, Arc and F2 represent nearly $200 million in combined capital raised and a shared mission to redefine the infrastructure of modern institutional finance.

About F2
F2 is the AI platform for private markets investors. Purpose-built for private credit, commercial banks & institutional finance, F2 accelerates diligence, underwriting, and portfolio monitoring, helping teams evaluate deals over 60% faster. Already trusted across thousands of deals, F2 makes collaboration easy and retains historical context, so past work compounds into future wins. Headquartered in New York City, F2 is backed by leading investors including NFX, Left Lane Capital, and Y Combinator. To learn more, visit f2.ai.

About Arc
Arc is the cash management and capital markets platform for ambitious companies. Arc helps technology companies manage cash, raise debt capital, and access AI-powered financial services. Founded in 2021, Arc has headquarters in San Francisco and New York City and has raised over $180 million of equity and debt capital from investors including Left Lane Capital, NFX, Bain Capital Ventures, Atalaya, Clocktower Technology Ventures, Torch Capital, and Y Combinator. To learn more, visit www.joinarc.com.

Contact: Eden Hoffman, [email protected]

SOURCE F2