- No previous knowledge necessary: The Heidelberg-based start-up, paretos, has developed an artificial intelligence-based data science platform that enables global corporations, innovative SMEs and growing start-ups to use AI systems that were only available to tech giants until now – and all without major integration costs
- The first three widespread use cases – Dynamic Pricing, Customer Recommendations and Warehouse Optimisation – have already attracted customers such as Accenture, Getsafe or one of the biggest parcel logistic services in Europe
- €3,5 million seed funding by lead investor LEA Partners and existing and new business angels will be used to strengthen the team and enhance product development
Heidelberg, 16. September 2021, Heidelberg-based startup Paretos has successfully closed a €3.5 million seed funding round with lead investor LEA Partners. Founded in 2020, the company offers an AI platform for forecasting and optimization. The fresh capital will flow into team and product development.
Data science without access barriers
In the digitalized business world, data, key figures and measured values are the decisive requirements for long-term success. Artificial intelligence is indispensable for processing the growing amounts of information. The vast majority of executives (84%) have also recognized that they cannot achieve business growth without scaling AI systems. However, older established data analytics tools need to be operated manually by data experts and many businesses in Germany cannot access these skills and resources – either due to cost and time constraints or because data science talent is hard to find.
paretos closes this gap: The Heidelberg-based tech start-up makes analysis processes for companies as easily accessible and integrable as an email program. With the help of AI-based software as a service tool, innovative SMEs, dynamic start-ups and large corporations can carry out extensive data analyses without prior knowledge or the expertise of data science specialists.
To this end, the young company was able to close seed financing of €3,5 million at the beginning of September. The main contributor is B2B tech investor, LEA Ventures, who also specialize in AI companies. “For most companies, AI is still an abstract concept. It often takes a lot of time and expert knowledge to introduce solutions but we were very impressed by the customer feedback and how easy it is to deploy paretos – a no-brainer for customer,” says Nils Seele of LEA Partners. “We are excited to be part of the data science democratization. Together with a strong angel consortium, we want to support Thorsten and Fabian in their vision to become the number one in Prediction & Optimisation as a service.”
Targeted optimization by the paretos algorithm makes companies more efficient and competitive. Among other things, the underlying software is capable of fully automating three of the most complex challenges in the business and marketing context:
- Targeting customers using personalized product recommendations, cross-selling options and impact analysis (Customer Recommendations).
- Dynamic pricing of products and services in response to market changes (Dynamic Pricing).
- Efficient inventory management to optimize logistics processes in real time (Warehouse Optimization).
Thorsten Heilig, Co-Founder and CEO:
“With our innovative approach, we want to enable teams and organizations to independently manage dynamic and complex problems. Our goal is to democratize the entire data science process so that every company can evaluate its data as easily as possible and make strategically targeted business decisions.”
Innovative optimization algorithm
At the heart of the software is the “Socrates” optimization algorithm that was especially developed for dealing with highly complex models. It is based on several years of research at the Munich University of Applied Sciences and is recognized and validated worldwide by, among others, the renowned Massachusetts Institute of Technology (MIT). Developed further by paretos, its performance outpaces even state-of-the-art algorithms from tech giants like Facebook.
Fabian Rang, Co-Founder & CTO:
“The challenge for the algorithm is the number of possible criteria and their interactions: To optimize complex business processes, thousands of scenarios have to be created and analyzed. Only through high-performance machine learning are companies able to make the truly best decision for themselves and their situation.”
To this end, the young company was able to close seed financing of €3.5 million at the beginning of September. The main contributor is B2B tech investor, LEA Partners, who also specializes in AI companies.
Nils Seele of LEA Partners:
“For most companies, AI is still an abstract concept. It often takes a lot of time and expert knowledge to introduce solutions but we were very impressed by the customer feedback and how easy it is to deploy paretos – a no-brainer for customer. We are excited to be part of the data science democratization. Together with a strong angel consortium, we are thrilled to support Thorsten and Fabian in their vision to become the number one in Prediction & Optimisation as a service.”