Vertice, a startup that cuts SaaS spending for companies like Pepsi and Mastercard, just raised $26 million using this 11-slide pitch deck
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- A startup that helps companies manage their software spending just raised a $26 million Series A.
- Vertice negotiates with SaaS vendors and counts Pepsi and Mastercard among its users.
- Check out the 11-slide deck Vertice used to raise the fresh funds.
A startup that helps companies and finance teams manage and cut their spend on software has just raised $26 million in a Series A round led by 83North and Bessemer Venture Partners.
Vertice, which recently came out of stealth mode, simplifies the software subscription renewal process for companies. The startup has built a tool that aggregates the renewal dates and contract terms for these subscriptions on one platform, so businesses can easily keep track of their SaaS expenditures.
The London-based firm claims that 90% of SaaS customers are overpaying for their tech. Vertice handles the negotiations on SaaS deals for its customers and counts the likes of Pepsi, Santander, and Mastercard among its users.
“One of the key problems in this space is that customers don’t have very transparent pricing, and they don’t know what other customers pay,” said cofounder Eldar Tuvey. “They enter into negotiations with SaaS vendors without much idea of what they’re charging other customers.”
Tuvey aims to “bring some transparency” to “this massive price discrimination” by giving customers access to market rates. Vertice’s tool collects anonymized data on how much companies pay for SaaS subscriptions, so customers can gauge how much they’re spending compared to their counterparts based in the same geographic region, industry, or company size.
“Then we give customers a methodology and framework to get the best deal,” Tuvey told Insider. “We tell them best practice for that vendor, and we get paid by the customer to do it on their behalf.”
The startup charges companies a certain percentage based on their annual software spending budget.
The round was led by London-based VC firm 83North, which has previously backed fintechs Paddle and Obligo, and California-based VC-firm Bessemer Venture Partners, which has invested in SaaS startups Appwrite and Teleport. Additional angel investors such as Juan Lobato, founder and co-CEO at Ebury, Ronni Zehavi, cofounder and CEO at Hibob, and Yuval Tal, former founder and CEO at Payoneer, also participated, among others.
“We are excited about backing Vertice as they work on behalf of SaaS customers in what we believe is a multi-billion market opportunity,” said Adam Fisher, partner at Bessemer Venture Partners.
With the fresh funds, the startup will focus on building its international presence, growing its team to 100 employees, and developing its product roadmap so Vertice’s tool can be integrated into company systems more efficiently.
Check out the 11-slide deck used to raise the capital.