Preface

Vertice has established itself in the competitive field of expenditure management by applying innovative AI technology to optimize software and cloud spending. With expenses reaching hundreds of billions annually, their London-based startup has seen remarkable growth, expanding 13-fold in three years, much like the increase in software expenditure itself.

Lazy bag

Key Takeaway: Vertice aims to standardize company procurement processes, offering a unified AI-powered platform to drive savings and efficiencies.

Main Body

The landscape of expenditure management is witnessing significant transformation with the application of artificial intelligence, something that Vertice, a London-based startup, is capitalizing on. By channeling AI to streamline software and cloud expenditures—a domain where businesses globally invest hundreds of billions each year—Vertice has carved out a substantial niche in this sector. This strategic focus has resulted in the company growing by a factor of 13 since its inception, mirroring the explosion in software spending.

The recent funding round has proven successful, with Vertice securing $50 million to further its mission. Lakestar, alongside other investors like Perpetual Growth, CF Private Equity, Bessemer Venture Partners, and 83North, has recognized the potential in Vertice's vision, contributing to a cumulative raise of about $100 million to date. The valuation in this Series C round marks a notable increase, positioning the company in the high multi-million dollar segment.

Operational scopes for Vertice have broadened across continents, boasting a customer base that spans Europe, the US, and Asia Pacific. Esteemed clients such as ASML, Euronext, Grant Thornton, and Santander highlight the growing trust in Vertice's capabilities.

The Tuvey brothers, Roy and Eldar, who previously established successful ventures like ScanSafe and Wandera, have infused their entrepreneurial experience into Vertice, making it a sought-after entity. Gartner's forecasts indicate that data center spending will surge by over 9% to nearly $5 trillion by 2025 due to AI and cloud advancements, underlining the relevance of Vertice's strategic direction.

Within a saturated market, Vertice differentiates itself by integrating deeply with a business's existing data, enabling it to make highly informed suggestions. This approach borrows techniques akin to those used in cybersecurity to offer a nuanced understanding of a business's activity, typical spending patterns, and potential future purchases.

Through AI and comprehensive data analysis, Vertice has developed a 'large software procurement model,' which focuses on software usage rather than mere data points. The company harnesses insights from a vast dataset, including over $3.4 billion in SaaS and cloud expenditures and benchmarks from more than 16,000 software vendors.

Customers benefit from expedited purchase cycles and significant cost reductions—purchasing times can be halved, translating into savings between 20% and 30%. Using AI, Vertice automates the ingestion of contract details, offering real-time benchmarking insights, thereby enhancing the effectiveness of procurement orchestration.

The startup's evolution, rooted in the Tuveys' expertise and innovative application of AI in procurement, has attracted substantial investor interest. Particularly appealing is its ability to reduce operational software costs amidst an environment of financial caution for startups.

Lakestar has expressed considerable interest, affirming the high regard for Vertice's technology among users and the potential it offers for expenditure reduction.

Key Insights Table