Check out our latest thesis from the firstminute investment team - this time on the $13 trillion opportunity in AI procurement software. 💪 💪 💪 💪
🤯 $13 trillion. That's how much governments worldwide spend annually on procurement. That’s 13 thousand billion dollars that are up for grabs every year from the government. In the EU alone, over 250k public institutions oversee around $2 trillion annually across millions of contracts for goods, services and public works. But here's the shocking part, and where we at firstminute capital have a thesis and see an opportunity: Companies are still spending WEEKS manually parsing hundreds of pages of dense RFP documents, coordinating with suppliers, and preparing bids. Thanks to AI, the game is about to change. 🎯 We're seeing a new wave of AI-native startups transforming this space: - Stotles: $6.5m led by Headline (Jun ‘22) - Govly: $9.5m led by Insight Partners (Nov ‘23) - GovDash: $10m led by Northzone (Apr’24) - TENGO: €3m led by Point Nine (Jun ‘24) - Odo: $500k led by YC (Jun ‘24) - Sweetspot (YC S23): $2.2m led by 1984 Ventures (Aug ‘24) 🔥 The real opportunity though? 1) It's not just about winning bids. The companies that will dominate this space are building the operating systems for the entire supply chain: - Automating bid discovery and writing - Managing supplier relationships - Ensuring regulatory compliance - Delivering real-time cost insights 2) There are hundreds of vertical companies to be built. We are excited about companies like Scalera in construction, but there is more to do in defence, health and other verticals. 💡 Key insight: When government spending meets AI automation, we're not talking about incremental improvements. We're talking about turning weeks of work into hours. Who else is excited about the future of procurement tech? 🚀 Read the full article here: https://lnkd.in/eWK2iucU And if you want more thesis from the early stage of venture, subscribe to Venture Thesis: https://lnkd.in/eg69h6NQ #AI #Procurement #StartUps #Innovation #GovTech #SupplyChain Lorcan Delaney Sam Endacott Adriana Vitagliano
