Vertice: Revolutionizing Expenditure Management with AI
In the bustling arena of expenditure management, London-based startup Vertice has carved a distinct niche for itself. By leveraging artificial intelligence, Vertice is transforming how businesses manage their software and cloud spending, an area where billions of dollars are at stake annually. Since its inception three years ago, Vertice’s operations have grown 13-fold, mirroring the rapid increase in software spending. In a significant move to further broaden its horizons, the company recently secured $50 million in new funding.
A Unified Approach to Procurement
Vertice’s CEO and co-founder, Roy Tuvey, articulated the company’s mission during a conversation with TechCrunch. “Vertice is designed to standardize companies’ processes around how they buy anything, not just software and cloud,” he explained. He highlighted the current challenge faced by procurement teams who often juggle disparate solutions and silos while striving for savings and efficiency.
“They don’t have amazing technology today. So we’ve brought it all together in a unified and simplified platform,” Tuvey said.
{Roy Tuvey}
New Funding and Expanding Horizons
The Series C round, led by new investor Lakestar with participation from Perpetual Growth and CF Private Equity, brings Vertice’s total funding to approximately $100 million. While the company has not disclosed its current valuation, Tuvey confirmed that it has increased from the “several hundred millions” mark noted last year.
- Clients include major names like ASML, Euronext, Grant Thornton, and Santander.
- Operations span Europe, the U.S., and Asia Pacific.
A History of Entrepreneurial Success
The entrepreneurial journey of Vertice’s founders is noteworthy. Roy Tuvey and his brother Eldar have previously founded two successful security startups: ScanSafe, sold to Cisco for $200 million in 2009; and Wandera, acquired by Jamf for $400 million in 2021. Their expertise is now channeling into refining procurement processes at Vertice.
The Future of Enterprise Spending
Gartner forecasts that spending on data centers—spurred by cloud and AI—software, IT services, and communication services will surge by over 9%, nearing $5 trillion by 2025. This promising landscape underscores the competitive space in which Vertice operates. Competitors like Spendbase, Spendesk, Gartner, and G2 offer varied services in expenditure management.
Vertice’s Unique Edge
What sets Vertice apart is its ability to integrate seamlessly with a business’s data to provide tailored recommendations. Drawing parallels to cybersecurity firms’ network analysis methods, Vertice employs AI to discern a company’s operational patterns and spending habits. The startup has amassed data on $3.4 billion worth of SaaS and cloud expenditures along with benchmarking insights on over 16,000 software vendors.
“We ingest all the contract information through AI,” Tuvey noted. “We use technology to build co-pilots for purchasing automation.”
{Roy Tuvey}
Enhancing Efficiency through AI
Vertice claims that its platform can halve purchasing cycles while delivering savings between 20% and 30%. By identifying bottlenecks in procurement processes—such as pricing checks or security compliance delays—AI-driven insights can streamline operations significantly.
“You can just imagine — the more apps you have, the AI can learn and make recommendations,” Tuvey added.
{Roy Tuvey}
Investor Confidence Amid Economic Pressures
The prowess of Vertice’s founders and their novel approach to procurement have piqued investor interest. Georgia Watson from Lakestar noted that expenditure is a critical concern for companies aiming to reduce operational costs amid today’s funding constraints. Several of Lakestar’s portfolio companies already leverage Vertice’s solutions, reinforcing confidence in its capabilities.
