Minority-Founded Clockwork Secures $2M for Its AI Fintech Platform
Keeping expenses down and profits up is the goal for most companies, unfortunately, that’s easier said than done. In Chicago, minority-founded fintech startup Clockwork is helping SMBs do just that and it recently closed its first seed round.
On Monday, the company announced it raised a $2 million round from Underscore VC, a Boston-based seed investment firm.
Clockwork was co-founded by Fady Hawatmeh and Mike Webb in 2018 and is intended for businesses with 20 employees or less that do not have a dedicated finance person. The company and platform were launched as a way to help SMBs gain financial literacy by making the necessary financial information readily available.
“We take the mystery out of finance and give business operators confidence in their numbers and cash flow to empower their growth,” Hawatmeh, who also serves as the company’s CEO, said in a statement. “The single best piece of information as a fractional CFO I used to give clients was ‘know your numbers.’ Having financial command reduces fear, allows management teams to take calculated risks and focuses them on what they do best to grow their businesses instead of relying on someone else, or spending valuable time wrangling spreadsheets.”
According to Clockwork, its SaaS platform saves businesses money by automating accounting work that is usually outsourced when enterprises lack the trained personnel to do the work. In a matter of minutes, Clockwork’s platform can create cash flow predictions and forecasts for up to five years. It does this by using AI to analyze a business’ financial data over the past three years.
In addition to its platform, Clockwork also has a Startup and Inclusion Program that helps other minority-owned companies by offering support and discounts on its tools. The program, intended for companies making less than $1 million in revenue, started as a way to combat the lack of VC funding for minority startups.
“Fady and his co-founder Mike Webb and their team have found and solved for a critical need in a big and underserved market — helping small businesses and their finance partners take control of their finances with tools that previously were only available to growth-stage companies,” Brian Devaney, a principal at Underscore VC, said in a statement.