Windmill, a startup based in New York, has secured $12 million in seed funding to develop AI tools aimed at helping companies better understand and manage their employees. The company was co-founded by Max Shaw, Brian Distelburger, and Mark Tanner. Unlike most AI firms that focus on automation or cost-cutting, Windmill is building technology to improve workforce insights, making it easier for organizations to track, develop, and retain their people.

Bridging the Gap in Workforce Data

Many companies lack reliable systems for understanding their employees. Critical information about who is performing well, who is struggling, and which teams are most effective often remains in managers’ heads or scattered across various communication channels. As AI automates routine tasks and flattens organizational structures, making poor decisions about staff can become increasingly costly.

According to a recent report on AI in HR, while 62% of organizations were already using AI tools by the end of 2025, most still lack the basic data needed to leverage these tools effectively. Windmill aims to fill this gap by building infrastructure that consolidates and analyzes workforce information, enabling companies to make smarter people decisions.

Growing Customer Base and Funding Details

Since launching its performance review product in November 2025, Windmill has grown rapidly. The company now counts over 100 customers, including notable names like Kalshi, Rho, and Merge. The recent seed round was led by Inspired Capital, with participation from Primary Venture Partners, Founder Collective, and Oceans Ventures.

This influx of funding will support further development of Windmill’s platform. The company’s goal is to create a comprehensive system that captures meaningful employee data, helping organizations understand who is growing, who needs support, and how teams can be optimized—especially as AI tools become more central to HR operations.

The Challenge of Employee Data Tracking

Companies tend to invest heavily in tracking finances, customer interactions, and code development. But tracking their people? That’s often an afterthought. Information about employee progress and team dynamics is usually scattered across Slack messages, manager notes, and informal conversations. This makes it difficult to make data-driven decisions about hiring, promotions, or restructuring.

Brian Distelburger, co-founder of Windmill, explains that many organizations have thousands of employees but lack systems to understand their workforce deeply. He highlights that executives recognize the importance of people but often lack the tools and data needed to manage them effectively. As organizations rely more on AI to reduce management layers and increase employee autonomy, having clear insights into workforce performance becomes even more critical.

The HR technology market is booming, projected to nearly double from $43.66 billion in 2025 to over $95 billion by 2034. Much of this growth is in analytics and AI-powered tools. However, many companies still haven’t built the structured data systems needed to fully benefit from these advancements. Windmill’s work focuses on creating that essential infrastructure to turn scattered employee data into actionable insights.

Inspired by

• https://justainews.com/companies/funding-news/windmill-secures-12m-to-fix-how-companies-track-people/

Sources

• shrm.org