German startup Mona AI raises €2M to automate staffing agencies across Europe

Mona AI

Mona AI, an AI-driven recruitment automation platform, has raised €2M in seed funding led by Earlybird, a leading European venture capital firm that has also invested in companies like Sana and Keel. The company, a spinout of Saarland University, plans to use the funding to expand into other European markets, including France, the UK, the Netherlands, and the DACH region, and grow its team from 45 to 100 employees.

Mona AI has already begun raising funds for its Series A round and has earned a spot on the prestigious Lünendonk Top 25 list for its advanced AI solutions, demonstrating its rapid scaling and growth.

Addressing language barriers for foreign workers in Germany and beyond

Mona AI’s solution combats the challenges faced by staffing agencies when onboarding non-German-speaking workers, particularly in the logistics industry. Previously, foreign workers often had to sign contracts without adequate information about their work, safety procedures, and other crucial details. Moreover, Germany’s requirement for foreign workers to secure a job before obtaining housing created a significant barrier.

In a conversation with TFN, Felix Adam, founder of Mona AI, explained: “To address this challenge, Mona AI created a digital avatar named “Mona” that communicates with these foreign workers in their native languages. Mona provides information about work contracts, safety protocols, and other essential details, helping workers feel more secure and integrated into their new jobs.” 

The company aims to use this technology to automate staffing agencies’ onboarding and integration processes, making it easier for them to hire and support non-German-speaking workers. This, in turn, helps foreign workers find employment and settle in Germany, addressing workforce challenges faced by the country and the broader European Union.

Behind Mona AI: custom models, in-house R&D, and focus on AI

Mona AI has developed its own AI models rather than relying on existing ones like ChatGPT. This approach ensures they can meet their specific use case needs and aligns with the upcoming European AI Act, which may restrict the use of certain AI models. Additionally, Mona AI’s partnership with QuantPi ensures compliance with the stringent requirements of the EU AI Act.

Adam shared with TFN that Mona AI conducts its AI research and development in-house, collaborating with the University of Saarland and hiring local talent with relevant AI research experience. This strategy aims to keep Mona AI at the forefront of AI research and development.

The company is strategically located in Saarland and Munich, two major AI hubs in Germany. “By maintaining close ties with academic institutions and hiring local talent, we aim to stay at the cutting edge of AI research and development. Our technology is specifically designed to automate staffing agencies’ recruiting, onboarding, and sales processes, addressing their unique challenges such as high turnover rates, language barriers, and the need for rapid onboarding, concluded Felix Adam, founder of Mona AI.” 

Investors’ perspective: ethical innovation 

Earlybird Partner Dr Johannes Triebs added, “What’s truly outstanding about MONA AI is not just its rapid growth, but its unwavering focus on data security, compliance, and responsible AI development—areas that are often overlooked by fast-growing startups. In a market where many companies are scrambling just to keep up with growth, MONA AI has built a foundation that prioritises the ethical implications of AI while still delivering cutting-edge technology. This is exactly the kind of forward-thinking approach that will enable MONA AI to outpace competitors and become a leader in the HR automation space.”

Ralf Zastrau, Director of Entrepreneurship Saarland University and CEO of Triathlon, remarked, “MONA AI exemplifies the innovative spirit that we cultivate at Saarland University. Their commitment to responsible AI development and regulatory compliance, particularly in such a high-pressure industry, is a testament to their leadership and vision. It’s inspiring to see a startup not only pushing technological boundaries but also setting a high standard for ethical practices in AI. I look forward to seeing how MONA AI continues to impact the staffing industry and beyond.”

Potential for EU-Wide Impact

The language barrier staffing agencies face is a common challenge across the European Union, not just in Germany. Mona AI’s solution, with its potential to be scaled and applied across the EU, has the power to significantly impact worker mobility and integration. This could contribute to social cohesion, diversity, and economic growth on a pan-European scale.

The post German startup Mona AI raises €2M to automate staffing agencies across Europe appeared first on Tech Funding News.

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