SMYCLES Receives 1.5 Million Euros for AI-Powered Team Planning and Relocates to Magdeburg

The software startup SMYCLES has raised 1.5 million euros in an equity financing round. The round is led by the IBG funds of the state of Saxony-Anhalt, managed by bmp Ventures AG. Two private investors from Germany and the U.S. are also participating. As part of the financing, the company—founded in 2023—is relocating its headquarters to Magdeburg. SMYCLES is developing software designed to use corporate data to assemble suitable teams consisting of employees and AI agents. More than one million euros of the new capital is to be invested at the new location over the next 18 months.

IBG Funds Lead Financing Round

With equity financing totaling 1.5 million euros, SMYCLES aims to accelerate the further development of its software and the expansion of its sales operations. The investment agreement was notarized on September 28, 2026. The IBG funds of the state of Saxony-Anhalt, managed by bmp Ventures AG, are participating as lead investors. They are joined by two private investors: one from the U.S. and one from Germany, who, according to the company, brings experience in transforming medium-sized companies. The two private investors are participating on a pari passu basis. The exact breakdown of the financing amount and the company valuation were not disclosed. In connection with the financing, SMYCLES is relocating its headquarters to Magdeburg, where a significant portion of its future development is to take place.

Software Aims to Pair People and AI Agents into Teams

SMYCLES addresses a question that is gaining importance due to the increasing use of AI agents in companies: Which tasks should be handled by which employees and which digital systems? The platform is designed to help companies assemble suitable teams for specific tasks. In doing so, the software takes into account both human employees and AI agents capable of performing certain tasks automatically. The two groups are evaluated based on different criteria. According to the startup, the primary focus for AI agents is on technical skills and reliability. For human employees, on the other hand, factors such as experience, judgment, and collaboration with other team members are taken into account. SMYCLES aims to go beyond traditional personnel and resource planning and place greater emphasis on actual collaboration within a team.

Company data provides the basis for decisions

The software draws on existing information from various enterprise systems. This includes data from human resources management, project management, customer relationship management, and business processes. Information from Business Process Management (BPM) plays a particularly important role. This information describes how operational workflows are organized, which tasks are interdependent, and what requirements arise during their execution. SMYCLES consolidates this information and uses it to simulate various team compositions. For a given task, the system then proposes a suitable combination of employees and AI agents. According to the company, the selection is accompanied by a rationale. The startup claims to be able to generate such suggestions within a few seconds. Independent comparative data on actual time savings or the quality of the recommendations has not yet been published.

Which tasks remain the responsibility of humans?

Another component of the concept is the distinction between tasks that can be automated and those where human skills are particularly important. SMYCLES refers to the latter as “Human Reserved.” These may include tasks that require experience, judgment, personal responsibility, or complex coordination. The platform is designed to help companies take these requirements into account in their respective work contexts. Co-founders Martin Zünkeler and Dr. Bernhard Zünkeler see this as a key difference from conventional approaches to resource planning. In their view, a team’s performance depends not only on the individual qualifications of its members but also on how they work together. With the increasing use of autonomous AI agents, this issue now extends to coordination between human and digital actors.

Integration into Existing IT Systems Planned

SMYCLES positions its platform as a complement to existing enterprise systems. The software is designed to leverage existing solutions for human resources management, project management, and business processes, rather than completely replacing them. According to the company, the product can be deployed immediately as a cloud application. For on-premises installation in a company’s own data center, the startup estimates a setup time of one day. However, how quickly the platform can actually be put into productive use depends on the required interfaces, the availability of suitable data, and the respective IT security requirements. SMYCLES also states that it offers templates for data protection, data security, and requirements related to the European AI Act. The specific legal assessment and implementation of such requirements depend on the respective use cases and responsibilities.

Six corporate customers are using the platform

According to the company, SMYCLES is already being used by six customers or corporate accounts. These come from the energy infrastructure, industrial, and university medical sectors. The company does not disclose the names of the customers or details regarding the scope of their respective usage in its announcement. Information on revenue, licensing models, or measurable productivity gains is also not yet available. However, the existing applications are said to demonstrate that the platform is already being used in various organizational environments. With this funding, SMYCLES now aims to attract additional customers and further develop its technology.

More Than One Million Euros for the Magdeburg Location

A significant portion of the capital raised is intended to directly benefit the company’s new location. SMYCLES plans to invest more than one million euros in Magdeburg over the next 18 months. The funds are earmarked for product development and sales. For the IBG funds, this investment aligns with their mission to finance innovative technology companies based in Saxony-Anhalt. The RKF IV venture capital fund, managed by bmp Ventures, was launched at the end of 2023 with a volume of 63 million euros and is financed by state and EU funds. Ywes Israel, a principal at bmp Ventures, sees the combination of process management, corporate data, and AI agents as an approach for the future organization of operational work. For SMYCLES, the key question now will be whether the proposed team structures prove effective in day-to-day business operations and whether the software can be scaled to serve a larger number of customers. With 1.5 million euros in equity and its new location in Magdeburg, the startup is laying the groundwork for its next phase of growth.