AUSTIN, Texas--(BUSINESS WIRE)--SourceDay, a pioneer in purchase order management automation software, raised a $3.5 million round of equity financing from investors Draper Associates, Silverton Partners and ATX Seed Ventures. The capital will fuel growth as the company hires product development and additional sales professionals to meet increasing demand. The investment will ensure manufacturing and distribution companies have a modern and strategic solution to manage their supply chain.
SourceDay burst onto the market in 2015 with a first-of-its kind automated purchase order management software as a service (SaaS) focused on the manufacturing and distribution industries and their procurement for direct spend. The unique automated workflows and integrations to existing ERP systems enables companies to build a strategic supply chain that brings immediate value with an analytical view into the elements that drive revenue. Through PO automation, buyers can manage their cost of goods sold in a more strategic way with significantly less time and effort.
“Direct spend has become a strategic initiative among procurement executives looking to increase supplier performance and reduce supplier side risks while driving down costs,” says Tom Kieley, CEO and co-founder of SourceDay. “This funding round is further confirmation that we are filling a void. We are excited to have earned the confidence of our investors and customers, so we can continue disrupting the market with our innovative supply chain solution.”
The trio of investors, led by Draper Associates, has more than 60 years of combined experience choosing start-up companies with the most potential. “SourceDay has become a mission-critical tool for companies managing their purchase orders,” says Billy Draper of Draper Associates. “We spoke to customers in various sectors and it became clear that the SourceDay software has created enormous efficiency and productivity gains. More importantly, SourceDay has had strong positive network effects. It can provide value across the stack from manufacturer and distributor to supplier.”
One of the key differentiators of SourceDay is the real-time visibility and accessibility it brings into the supply chain for both buyers and suppliers. “It’s affirming that our investors recognize the value we bring to manufacturers and distributors,” says Clint McRee, COO and co-founder of SourceDay. “SourceDay customers are saving an average of 10 hours per week per buyer and improving supplier on-time deliveries by 35 percent.”
About SourceDay
SourceDay is a Software as a Service (SaaS) solution that automates purchase order management processes by seamlessly integrating with Enterprise Resource Planning (ERP) systems. SourceDay extends ERP purchasing capabilities by centralizing and managing the PO lifecycle for buyers and suppliers, eliminating manual processes while improving supplier performance.
About Draper Associates
Draper Associates, founded in 1985 and based in California, is a seed-stage venture capital firm that encourages entrepreneurs to drive their business to greatness, transform industries with new technologies, and to build platforms for extraordinary growth, jobs, and wealth.
About ATX Seed Ventures
ATX Seed Ventures is an early-stage venture capital firm specializing in Texas. The company’s investments focus on software, IoT, e-commerce and mobile applications. ATX Seed Ventures was created by expert entrepreneurs to serve emerging entrepreneurs.
About Silverton Partners
Based in Austin, Texas, Silverton Partners focuses on Seed-Series A rounds of financing for companies with management teams who have a proven ability to execute. The Silverton investment team has broad experience in leading high-growth companies in sectors ranging from products to enterprise software.