German Paretos Secures €8.5M in Series A Funding

The Heidelberg-based AI startup paretos has successfully closed its Series A funding round, raising €8.5 million. The funding round is led by Acton Capital, a venture firm known for its investments in prominent companies such as Etsy, Cyberport, and HomeToGo. Additionally, existing investors UVC Partners and LEA Partners participated in this round, alongside Interface Capital and former Vodafone CEO Hannes Ametsreiter.

Paretos offers an AI-based platform that aids market leaders, including HelloFresh, Otto Group, Faller Packaging, ARMEDANGELS, and EDEKA, in making informed decisions for critical business processes. With the newly acquired capital, paretos co-founders Thorsten Heilig and Fabian Rang aim to accelerate their growth trajectory. "Our platform typically delivers an ROI of over 100% in the first year and generates business impact worth millions. With the support of our investors, we aim to expand our technological lead," stated Thorsten Heilig, Co-Founder and CEO of paretos. He emphasized that many companies across Germany and Europe are currently facing significant pressures, and paretos provides a robust tool to help them tackle urgent challenges, ranging from changing customer demands to complex supply chains, as well as cost and efficiency pressures.

Fritz Oidtmann, Managing Partner at Acton Capital, highlighted the unique value proposition of paretos, stating, "While many AI technologies are still in the hype phase, paretos has impressively demonstrated that their Decision Intelligence solution creates long-term value for companies that directly reflects in business results. Especially in the current tense economic climate, this is the game-changer for real-world AI applications."

Paretos has received recognition from Gartner as one of only nine European representative Decision Intelligence providers. According to a report by MarketsandMarkets, the global market for Decision Intelligence is projected to grow by 25% annually, reaching €50 billion by 2030. Andreas Unseld, General Partner at UVC Partners, noted, "With its patented and highly innovative technology, combined with a strong application focus, paretos has the best chance of taking on an international leadership role." Nils Seele, Partner at LEA Partners, added, "After conceptualizing AI, it's now about transformation. Anyone looking for ROI in AI applications will find it at paretos."

The funding will enable paretos to enhance its platform capabilities, expand its reach, and continue delivering innovative solutions that address the pressing challenges faced by businesses today. As the demand for effective decision-making tools in the AI landscape grows, paretos is well-positioned to leverage its technology to achieve significant market impact and drive transformation across various industries.