London launch Summit It has made a name for itself over the years in the world of cost management by focusing on leveraging AI to optimize a single area where businesses collectively sink hundreds of billions of dollars into overstretched IT budgets. 5 trillion dollars Annual: Software and cloud usage. Now, Vertices' business has grown 13-fold since its inception less than three years ago (at a rate comparable to software consumption growth); The startup has raised $50 million in new funding to expand its vision.
“(Vertice) is designed to standardize companies' processes around how they buy anything, not just software and cloud,” CEO and co-founder Roy Tuvey said of the platform. “Many companies today have very different solutions; There are different silos that they look at, and procurement teams are generally under a lot of pressure to deliver savings and efficiencies. They really don't have amazing technology these days. So it's all brought together in one unified and simple platform.”
New backer Lakestar is also joined by Perpetual Growth and CF Private Equity, and is led by previous backers Bessemer Venture Partners and 83North. Series B of Vertice Almost a year ago
The startup has now raised around $100 million, and although it did not disclose a valuation, Tuvey confirmed that it has raised “multiple millions” in the past 12 months. The size of Vertice's clientele has also grown. Europe Chip giant ASML now has hundreds of inventory numbers in the US and across the Asia Pacific region. Euronext Grant Thornton and banking behemoth Santander are involved.
For some additional content, Vertice's founders have a strong history behind them. Roy and his brother Eldar founded two security businesses, ScanSafe, which was previously sold to them. Cisco was sold in 2009 for $200 million.; and Wandera, Acquired by Jamf for $400 million. In 2021
How big is the market for the software? Gartner Data centers by 2025 (due to cloud and AI) Software; Spending on related IT and communications services will grow by more than 9%, to just under $5 trillion (devices add another $800 billion to that amount) — and it shouldn't. It comes as a surprise that Vertice works in such a crowded part of the enterprise market.
recommendations of similar products among its competitors; price side-by-side performance comparisons; There are many platforms that offer different levels of services that provide recommendations and more. Names include Spendbase; Spendesk including the likes of Gartner and G2.
Vertice's point of differentiation is how it integrates with a business's data to better understand what to recommend. Tapping into the same approaches you might think a cybersecurity company would use to better understand operations within a network, Tuvey says Vertice is what a company does. Tuvey said he built a system that uses AI and other tools to build a picture of how much he spends on a regular basis. What do you need to buy or want to buy next?
In fact, The startup is built along the lines of the “big software procurement model” big language model, where the parameters are not information and insights as expressed in natural language. The company has about $3.4 billion in SaaS and cloud spending, with benchmark figures on more than 16,000 data vendors (it has no financial ties to Vertice, Tuvey confirmed when asked). Customers save money by using it to speed up their work in the buying process. The startup claims that the savings can typically halve procurement cycle times by between 20% and 30%.
“We're gathering all the contract information through AI,” Tuvey says, adding that he's used the technology to build co-pilots to help buy, doing work that financial teams might have previously been able to dissect. “We standardize the pricing insights and analytics needed at point of purchase. AI is really interesting when it comes to procurement aggregation, because you can learn where the company has bottlenecks in their processes.”
This, in turn, gives Vertice an understanding of how the larger business operates, he adds.
“For example, if a company is spending a long time with certain steps to verify price, for example security compliance, then they have to be done in parallel, which saves time,” he said. “And you can imagine more and more app ads, AI learning and making recommendations.”
This is the background of the Tuveys; Georgia Watson, the Lakestar partner leading the round, said it was the way the acquisition was leveraged and the resulting growth that got investors knocking on the door. Currently, Spending is key for companies looking to reduce operating costs—something that's especially acute for startups, given the constraints they face on funding right now.
“Some of our portfolio companies are using Vertice,” she said, “and really need to reduce the pressure on software consumption. That's a conversation we've had, and the feedback has been positive.” She said Lakestar had tried to invest in the past and ultimately pulled it out this time.