Vendr Raises $150MM Series B to Help CFOs Reduce Software Expense
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SaaS Buying Leader to Help More Software Buyers Free Up Cash Flow, Gain Visibility into their SaaS Purchasing Process and Reduce Risk When Businesses Need it Most
BOSTON--(BUSINESS WIRE)-- Vendr, the world’s first SaaS buying platform, today announced it raised $150 million in Series B funding co-led by return investor Craft Ventures and new investor SoftBank Vision Fund 2, and joined by Sozo Ventures, F-Prime Capital, Sound Ventures, Tiger Global and Y Combinator. The new funding will accelerate platform development, helping organizations cut costs, manage their second-highest expense - software - and reduce risk in light of the economic downturn.
"Increasing capital efficiency is a priority, whether you're a startup founder or enterprise CFO. By helping to cut annual SaaS expenses, Vendr is one of the easiest ways a company can save money," said David Sacks, co-founder and general partner at Craft Ventures, and Vendr board member. "As an early investor in Vendr, we've long understood the potential, but in the current economic climate the need for Vendr is stronger than ever."
Companies across all industries increasingly rely on software to get the job done. Gartner estimates that worldwide spend on enterprise software surpassed $600B in 2021 and is set to exceed $670B this year. Vendr’s data across 500+ customers validates this increase: on average, Vendr’s enterprise-sized customers spend over $350,000 per month on close to 300 SaaS tools, and that spend has doubled over the last 4 years.
As spending on software tools increases, and the number of software providers grows, it’s becoming more complex for companies to efficiently find, buy, and manage their software stack.
Vendr upends the traditional model of finding, buying, and managing SaaS. Acting as an extension of finance and procurement teams, Vendr enables the world’s fastest-growing companies to identify the right software, buy it at a fair price backed by data, and manage their growing stack in a single system of record.
“Everyone tells you to cut costs when the economy shifts, but no one tells you how. We’re the how,” said Ryan Neu, co-founder, and CEO, Vendr. “We've handled over ten thousand software transactions for our customers and learned that most companies overspend on software by 20-30%. We have the buying repetition and data to get our customers a fair price, and in fact, we guarantee to save them more than we cost, achieving a 9x ROI for them on average.”
Standout Benefits of Vendr Include:
Increase the return on software investment
- Software is often companies' second-biggest investment. Vendr ensures companies get the most value on these investments by helping finance and procurement leaders navigate the initial decision-making and evaluation to the entire negotiation and purchasing process.
- This is informed by best practices and data from tens of thousands of deals across thousands of software providers, ensuring companies get the SaaS they need, when they need it, at a fair price
- Automatically detect and track software used throughout the organization, creating a system of record to identify potential applications that don't meet internal security requirements or create unknown attack vectors
- Protect from lapsed renewals, duplicative purchases, and shadow spend - reducing the attack surface by identifying legacy, duplicated, or otherwise "orphaned" software subscriptions for decommissioning
- Ensure software providers meet security and compliance requirements by coordinating security reviews and leveraging proprietary data on security and compliance information for top software companies
Drive operational efficiency
- Working as an extension of finance and procurement teams and negotiating with providers on their behalf, Vendr manages the full cycle of software purchases and renewals, so business stakeholders have more time for strategic work.
- Accurately monitors the adoption and usage of purchased software, enabling companies to assess the value realized from their software investments, and informing renewal decisions.
“As businesses face an uncertain macroeconomic environment, the need for cost-efficient solutions becomes more pressing. Vendr’s SaaS buying platform helps businesses choose the best SaaS solutions to drive revenue growth and negotiates attractive terms to save money,” said Priya Saiprasad, Partner at SoftBank Investment Advisers, and member of the Vendr board of directors. “We are delighted to partner with Ryan and the Vendr team to support their mission of transforming how companies find, buy, and manage SaaS.”
Vendr is the market leader and has experienced exponential growth within the past year, processing over $1B in software spend and delivering over $200M in software savings for its customers. To see how much you could be saving on your annual software expense get in touch here.
Vendr is changing how companies find, buy and manage SaaS. The first of its kind, Vendr's SaaS buying platform offers both a product and people-powered service to enable the world's fastest-growing companies to purchase software quickly and with guaranteed savings. Today, Vendr has facilitated over $1B+ in SaaS purchases across 1,200+ suppliers for Finance and Procurement teams at HubSpot, Brex, Canva, Reddit, Toast, and more. Headquartered in Boston with a second location in Charleston, Vendr was founded in 2019 by Ryan Neu and co-founders Ariel Diaz and Aaron White, who joined the team through the acquisition of Blissfully in 2022. The company has over 250 employees globally. Learn more at vendr.com
Olivia Civiletto Erwin
Dotted Line Communications
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