Insider Brief
- Procurement Sciences AI raises $10M in Series A funding led by Battery Ventures to advance its AI-powered bidding intelligence platform for government contractors, aiming to streamline the procurement workflow.
- The company’s generative AI tools integrate with historical data sources to significantly reduce the time and effort required in the bidding process, offering a major efficiency boost for both large organizations and SMBs.
- Offering discounts for businesses owned by veterans, women, and minorities, Procurement Sciences aims to democratize access to government contracts, leveraging AI to level the playing field in the competitive government procurement sector.
PRESS RELEASE — WASHINGTON /April 9, 2024— (BUSINESS WIRE) — Procurement Sciences AI (“PSci.AI”), the next-generation bidding-intelligence platform for government contractors, today announced that it has raised $10M in Series A funding. The round was led by global, technology-focused investment firm Battery Ventures, with follow-on investment from Tower Research Capital and new funding from K Street Capital and Blu Ventures. Brandon Gleklen from Battery Ventures and Jared Young from Tower Research will join the Procurement Sciences board of directors.
Opportunities in government procurement are vast — approximately 10% of the U.S. federal government’s $6.5 trillion annual budget is allocated for procurement, representing $665B in annual spending for goods and services across every industry sector. However, the administrative burden of uncovering, evaluating and responding to public RFPs is unmanageable for many businesses, even as the number of available contracts increases, which puts small businesses at a considerable disadvantage. But even large organizations with experienced procurement teams are forced to spend considerable time and effort parsing and responding to bid opportunities, reducing capacity to deliver on existing contracts.
Veteran-founded Procurement Sciences has developed a suite of generative AI-powered automation tools designed to streamline the entire procurement workflow of business development and proposal teams, from bid discovery through proposal writing to compliance review. By directly integrating with historical customer data in SharePoint, Google Drive, and other common data sources, Procurement Sciences’ tools significantly reduce the time spent on various bidding-related tasks by more than 90% and tackle the biggest bottlenecks teams face, thereby acting as a powerful force multiplier for growth.
The company’s current customers include several of the top 20 largest defense and aerospace companies, as well as over one hundred small and medium-sized businesses across every sector that sells to the government. Recognizing the importance of promoting equity in government procurement — and in making AI affordable and accessible to companies of all sizes and types aiming to sell to the government — the company offers significantly discounted rates for businesses owned by veterans, women, and minorities, as well as for non-profit organizations.
“We launched Procurement Sciences with the mission of addressing the industry’s biggest pain points by adopting a generative AI-first approach,” stated Christian Ferreira, founder and CEO of Procurement Sciences AI. “As former government contractors ourselves, we deeply understood the challenges faced in this field. By leveraging generative AI — a technology that leapfrogs traditional software solutions — we’ve been able to rapidly transform the industry and introduce unprecedented efficiency gains.”
Ferreira added: “Government procurement is notably competitive and often seems out of reach for many small to medium-sized businesses that lack the necessary expertise and time to identify suitable bids, let alone prepare a compelling proposal. With our AI-powered tools, government contractors can now reallocate their time and energy towards more effectively delivering goods and services.”
Ferreira, a distinguished former Sergeant and Afghanistan veteran of the United States Marine Corps, transitioned from military service to a career in government contracting. After spending nearly a decade in various capacities across large government contractors, ranging from engineering to director-level management, he identified significant inefficiencies and challenges within the sector. Motivated by these firsthand experiences, he founded Procurement Sciences in late 2022, with the mission to revolutionize the industry’s pain points he had encountered as a contractor.
Based in the Washington, D.C. area, Procurement Sciences has rapidly expanded to a team of 16 members. With the latest funding, the company plans to expand its team across software engineering and AI research, in addition to development, sales and customer success. The aim is to overhaul the traditional government contractor operating model through the strategic application of artificial intelligence, streamlining processes and improving efficiency across the board.
“We are excited to partner with Christian and the team at Procurement Sciences, who are turning cutting-edge AI research into practical solutions for the government contracting process,” said Brandon Gleklen, Battery Ventures principal. “The Battery team has long explored areas where AI could revolutionize specific operational workflows, with a particular eye to government contracting as a sector of interest. Procurement Sciences boosts efficiency and growth for the largest contractors while also helping to level the playing field for small businesses seeking to serve our government and communities across the country. We are honored to partner with Procurement Sciences to support that mission.”
For more information about Procurement Sciences or to request a product demo, please visit: https://ProcurementSciences.com/ or https://Awarded.AI/
About Procurement Sciences AI
Founded in late 2022, Procurement Sciences AI (“PSci.AI”) develops workflow automation software that uses artificial intelligence to help government contractors to search for bids and create proposals more effectively. Follow the company on LinkedIn or visit https://procurementsciences.com/ for more information.
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