Vertice Secures $50M Funding for AI-Powered SaaS Spend Platform

Vertice Secures $50 Million to Revolutionize Software and Cloud Expenditure Management

In the competitive landscape of expenditure management, Vertice has distinguished itself through the application of artificial intelligence to optimize spending on software and cloud services – a sector where businesses collectively expend hundreds of billions of dollars each year.

Rapid Growth and Funding

Since its founding, the London-based startup has experienced a remarkable 13-fold increase in business, mirroring the rapid growth observed in software expenditure itself. This expansion has been fueled by a new $50 million funding round designed to broaden the company’s scope and impact.

According to CEO and co-founder Roy Tuvey, Vertice aims to establish standardized processes for all company purchases, extending beyond just software and cloud solutions. Many organizations currently rely on fragmented systems, creating challenges for procurement teams striving for savings and efficiency, often lacking advanced technological support.

Series C Funding Details

This Series C funding round is led by Lakestar, with participation from Perpetual Growth, CF Private Equity, and existing investors Bessemer Venture Partners and 83North, who previously co-led Vertice’s Series B round approximately a year ago.

To date, Vertice has raised around $100 million in total funding. While the exact valuation remains undisclosed, sources indicate it is approximately $500 million. Tuvey confirmed that this round represents an increase in valuation compared to the “several hundred millions” estimated 12 months prior.

Expanding Client Base

Vertice’s customer base has grown significantly, now encompassing hundreds of organizations across Europe, the U.S., and Asia Pacific. Notable clients include ASML, Euronext, Grant Thornton, and Santander.

Founders’ Proven Track Record

The founders, Roy and Eldar Tuvey, bring a wealth of entrepreneurial experience. They previously founded ScanSafe, sold to Cisco in 2009 for $200 million, and Wandera, acquired by Jamf for $400 million in 2021.

Market Opportunity

Gartner forecasts that spending on data centers, software, IT services, and communications will surpass $5 trillion in 2025, representing a growth of over 9% driven by cloud and AI adoption. This substantial market size positions Vertice within a dynamic and expanding sector.

Competitive Landscape

Vertice operates in a competitive market alongside platforms such as Spendbase, Spendesk, Gartner, and G2, which offer varying levels of services including product recommendations, pricing comparisons, and feature analysis.

Vertice’s Differentiating Approach

Tuvey emphasizes that Vertice distinguishes itself through its integration with a company’s existing data to provide more insightful recommendations. Leveraging techniques similar to those used in cybersecurity, the company employs AI to understand a business’s operations, spending patterns, and future needs.

The company has developed a “large software procurement model,” analogous to a large language model, but focused on software usage data. Vertice has analyzed over $3.4 billion in SaaS and cloud expenditure and compiled benchmarking data on more than 16,000 software vendors.

Benefits for Customers

Customers utilize Vertice to streamline the purchasing process and achieve cost savings. The startup claims to reduce purchasing cycles by up to 50%, resulting in savings of 20% to 30%.

“We ingest all contract information using AI,” Tuvey explained, noting the use of technology to automate tasks traditionally performed manually by finance teams. “We provide benchmark pricing insights and analytics at the point of purchase. AI is particularly valuable in procurement orchestration, identifying bottlenecks in existing processes.”

This analysis allows Vertice to gain a deeper understanding of the overall business operations. For instance, the system can identify opportunities to parallelize tasks, such as pricing checks and security compliance reviews, to save time.

Investor Perspective

Georgia Watson, the Lakestar partner leading the investment, highlighted the founders’ experience and its application to procurement as key factors driving investor interest. She also noted the current focus on expenditure reduction, particularly among startups facing funding constraints.

“Several of our portfolio companies are already using Vertice,” Watson stated, citing positive feedback and Lakestar’s previous attempts to invest in the company.

• Key Takeaway: Vertice is leveraging AI to address a significant pain point for businesses – optimizing software and cloud spending.
• Future Outlook: With substantial funding and a proven team, Vertice is well-positioned to capitalize on the growing market for expenditure management solutions.