Noetica Announces $7.8 Million in Funding to Bring AI Driven Data and Insights to the Corporate Debt Markets

Noetica AI, an AI software platform that benchmarks corporate debt transactions, announced it has raised a $6M seed round investment led by global venture capital firm Lightspeed Venture Partners, bringing its total funding to $7.8M following a pre-seed round led by Bling Capital in 2022.

Noetica AI was founded in 2022 by Dan Wertman, Tom Effland, and Yoni Sebag, and, in just over one year from its founding, has made tangible noise in the credit space for its cutting-edge AI solutions tailored specifically for legal and financial deal professionals. Leveraging the power of artificial intelligence, Noetica empowers professionals to more deeply and efficiently analyze highly complex transactional documentation to inform term negotiation and decision-making in debt issuances and investments.

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Dan Wertman, Noetica’s CEO, previously worked at Wachtell, Lipton as a financing attorney leading numerous multi-billion dollar credit issuances and restructurings. Dan expressed his excitement about this milestone, saying, “The debt markets are undergoing significant changes: deals are happening faster, risks are more pronounced, and new market entrants have upended age old structures–and yet, the technology that folks rely on to guide their decision-making is almost exactly the same as it was 30 years ago. Noetica uses its proprietary AI technology to help deal professionals make better decisions—providing a long overdue technological advancement to the $50+ trillion corporate credit markets.

“We’re thrilled to be partnering with Lightspeed. Not only do they have a stellar reputation for supporting founders, but we’ve immediately felt the impact of their expertise in just the short period of time we’ve started working together,” said Yoni, Noetica’s COO.

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“While the Corporate Debt market is one of the largest and fastest growing capital markets in the world, corporate debt issuance is unfortunately a process filled with significant inefficiencies and information asymmetry across all the deal professionals involved,” said Justin Overdorff, Partner at Lightspeed. “Noetica’s team has deep domain expertise across law, finance, and AI/ML, and their platform solves these problems by benchmarking debt terms across the market. Lightspeed is proud to lead Noetica’s seed round and partner with the team on their mission to help deal professionals leverage the power of AI to make better decisions.”

The infusion of capital from Lightspeed will enable Noetica to accelerate its mission of bringing AI-driven insights to the complex corporate debt markets focusing on product development, market expansion, and team growth. The company is working with, among others, several of the largest and most profitable law firms in the world, and its solutions have already been instrumental in multi-billion dollar debt transactions.

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Noetica has uniquely built and fine-tuned their AI technology in-house and proudly notes that it does not utilize external LLMs to power its software. Tom Effland, PhD and CTO of Noetica said, “In addition to the security and cost concerns of relying on third-party LLMs, we needed a more robust, multi-layered and tailored approach to analyzing some of the most difficult and most complex terms–it’s why we have a full team of machine learning engineers focusing solely on consistent innovation.”

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