Vertice: Revolutionizing Expense Management Through AI
London-based startup Vertice is making waves in the crowded expense management arena, carving out a niche with its innovative use of AI to optimize software and cloud spending. With businesses worldwide collectively shelling out over $5 trillion annually on IT, Vertice aims to streamline this expenditure significantly. Since its inception less than three years ago, the company has witnessed an impressive 13x growth, mirroring the soaring trend in software spending.
Expanding Horizons with New Funding
To further its mission, Vertice recently secured $50 million in Series C funding. This round was led by new investor Lakestar, with contributions from Perpetual Growth, CF Private Equity, and existing backers Bessemer Venture Partners and 83North. While the startup remains tight-lipped about its current valuation, CEO and co-founder Roy Tuvey assured that it reflects a significant uptick from previous valuations.
“[Vertice] is designed to standardize companies’ processes around how they buy anything, not just software and cloud,” Tuvey explained. “Many companies today have disparate solutions and silos, placing procurement teams under pressure to deliver savings. We’ve unified these processes into a simplified platform.”
— Roy Tuvey, CEO and Co-founder of Vertice
Diversified Clientele and Distinguished Founders
Vertice’s clientele has expanded to hundreds across Europe, the U.S., and Asia Pacific, now including industry giants like ASML, Euronext, Grant Thornton, and Santander. The company’s success can be attributed to its founders’ rich history in the tech industry. Roy Tuvey and his brother Eldar previously founded ScanSafe (acquired by Cisco for $200 million) and Wandera (acquired by Jamf for $400 million).
Navigating a Competitive Landscape
The enterprise market is rife with competition from platforms like Spendbase, Spendesk, Gartner, and G2. However, Tuvey believes Vertice stands out due to its unique integration with business data to optimize procurement suggestions. Using AI reminiscent of cybersecurity techniques, Vertice creates a comprehensive picture of a company’s operations and spending habits.
- Processes purchasing data through AI
- Reduces purchasing cycle times by half
- Averages savings between 20% to 30%
AI-Driven Procurement Efficiency
Vertice’s AI capabilities extend to analyzing contract information to provide benchmark pricing insights and analytics at the point of purchase. This technology not only accelerates procurement but also uncovers process bottlenecks within organizations. “AI can learn where the company faces delays,” Tuvey noted.
“For instance, if lengthy processes are consistently seen in pricing checks or security compliance steps, AI can suggest parallel processing to save time,” he elaborated.
— Roy Tuvey on AI in Procurement
Investor Confidence and Market Relevance
The combination of the Tuveys’ expertise and Vertice’s robust growth trajectory has attracted significant investor interest. Georgia Watson from Lakestar highlighted the urgency for companies to manage operational costs effectively amidst current funding constraints. “Some of our portfolio companies are using Vertice,” she mentioned. “The feedback was overwhelmingly positive regarding the pressure on software spend.”
A Promising Future Ahead
As Vertice continues to innovate in expense management leveraging AI technology, it’s poised for continued expansion in a sector that’s ever-growing. Given the projected increase in IT spending by Gartner to nearly $5 trillion by 2025, Vertice’s solutions are set to remain invaluable for businesses striving for efficiency and cost-effectiveness.