Revolutionizing Consulting: Ascentra Labs Secures $2 Million to Transform Workflows with AI

The global consulting industry, valued at $250 billion, has been slow to embrace artificial intelligence compared to other sectors like law and accounting. Ascentra Labs, a London-based startup founded by former McKinsey consultants, has secured a $2 million seed round led by NAP, a Berlin-based venture capital firm, to tackle this untouched market. The company aims to revolutionize consulting workflows by automating Excel survey analysis, a tedious task that even top firms have yet to streamline.

Paritosh Devbhandari, co-founder and CEO of Ascentra, draws on his experience at McKinsey to address the pain points consultants face when analyzing survey data for private equity due diligence. The platform developed by Ascentra simplifies this process by ingesting raw data and generating formatted Excel workbooks with traceable formulas, saving consultants valuable time.

While the legal industry has readily adopted AI solutions, consulting presents unique challenges that have hindered widespread adoption. The slow pace of technology adoption in professional services, coupled with the complexity of consulting workflows involving multiple data modalities, has deterred many startups from entering the market. Ascentra’s laser focus on survey analysis within private equity due diligence sets it apart from broader AI solutions that have struggled to gain traction in consulting.

Ascentra’s strategy of targeting a specific niche within consulting, where workflows are repeatable and automation is feasible, has attracted clients from top consulting firms. The company claims that its platform has enabled early adopters to achieve significant time savings on active due diligence projects. By honing in on a niche that larger firms have overlooked, Ascentra aims to carve out a competitive advantage in the market.

Accuracy is paramount in the consulting industry, particularly when billion-dollar deals are on the line. Ascentra’s technical approach combines AI models for data interpretation with deterministic Python scripts for analysis, ensuring consistent and verifiable outputs. By eliminating AI “hallucinations” and providing consultants with reliable results, Ascentra aims to instill confidence in its platform’s capabilities.

Security certifications play a crucial role in selling software to major consulting firms, given the sensitivity of client data handled by these organizations. Ascentra has obtained SOC 2 Type II and ISO 27001 certifications, demonstrating its commitment to data security and compliance. The company’s stringent data handling policies, including data deletion and non-use for model training, align with the confidentiality requirements of the consulting industry.

Ascentra’s pricing model, based on per-project charges rather than subscriptions, mirrors the budgeting practices of consulting firms. This approach allows for flexibility in resource allocation and may facilitate initial adoption without requiring central IT procurement approval. To scale its business, Ascentra aims to convert project-level engagements into long-term enterprise relationships, a process already underway with submitted business cases for enterprise rollouts.

While AI is poised to transform the consulting industry, Devbhandari believes that it will not eliminate jobs but rather redefine the role of consultants. As AI tools like Ascentra streamline repetitive tasks, consultants can focus on higher-value strategic work, leading to a shift in job responsibilities. The future of consulting remains uncertain, with the potential for productivity gains to either create new opportunities or reduce the need for traditional consulting roles.

With the seed funding secured, Ascentra plans to expand its presence in the U.S. market, where a majority of its clients are located. The company’s growth strategy involves building out its go-to-market team and establishing a strong foothold in the American consulting industry. NAP’s investment in Ascentra reflects a belief in the company’s disruptive potential to reshape the consulting landscape and empower consultants with AI-driven tools.

As Ascentra navigates the transition from pilot programs to enterprise contracts, it faces the challenge of competing with well-funded rivals entering the space. The company’s narrow focus on survey analysis within private equity due diligence provides a strategic advantage, but expanding into adjacent workflows will require developing new products while maintaining domain expertise. As the consulting industry evolves, Ascentra aims to be at the forefront of change, ushering in a new era of AI-driven consulting solutions.