AUSTIN, Texas--(BUSINESS WIRE)--SourceDay, the pioneer in automating direct spend procurement, purchase order management and supplier collaboration, today announced it has completed a $6.5 million Series A round of financing from three venture capital firms, Silverton Partners, Draper Associates and ATX Seed Ventures. These investors focus on startups that excel in their business sectors. The investment brings SourceDay’s total funding to $10.8 million since launching its revolutionary platform, and will allow the company to aggressively expand its sales and marketing efforts as well as broaden and accelerate innovative product development.
“SourceDay’s software is well-timed with the rapidly increasing demand for solutions that digitize the supply chain,” said Morgan Flager, General Partner with Silverton Partners. “We see direct spend purchasing and procurement as areas ready for improvement. Also, we are seeing expanding interest in SourceDay as awareness of this ideal automation solution expands across the industry.”
According to Gartner’s May 2018 report, Magic Quadrant for Procure-to-Pay Suites, “the procure-to-pay market is growing rapidly as organizations seek automation and innovation to control spend and improve supplier collaboration…By 2025, over 50% of the global midmarket and large enterprise will have deployed procure-to-pay suits via a cloud delivery model.”
“SourceDay delivers a powerful solution and we are excited to collaborate with and support them as they work to build a great company in an exciting category,” said Tim Draper, Founder/Managing Partner with Draper Associates. “We believe manufacturers will rapidly expand spending into this niche when they see the opportunities to maximize direct spend management provided by the application.”
In 2015, SourceDay launched the manufacturing and distribution industries’ first procurement management software as a service (SaaS) for direct spend. SourceDay standardizes the entire procurement lifecycle and automates managing POs, from purchase order acknowledgment to supplier collaboration and supplier invoice, for both buyers and suppliers, in one easy-to-use, centralized, cloud-based application. The SourceDay solution transforms procurement from a time-consuming, error-prone manual operation to a fully-automated process that significantly reduces cost, accelerates operational performance and diminishes risk to the supply chain.
“SourceDay is just scratching the surface when it comes to the potential in powerful direct spend procurement automation combined with supplier collaboration,” said Tom Kieley, CEO of SourceDay. “By replacing outdated manual processes with automated efficiency, manufacturers, distributors and their suppliers are bridging the gaps in productivity, resource management, collaboration and margins. Our customers are not only experiencing 35 percent savings, on average, in on-time material deliveries, but with SourceDay, their supply chains avoid the multiple risks for disruption created by outdated manual processes.”
“Having the financial support and confidence of Silverton Partners, Draper Associates and ATX Seed Ventures will help us execute our vision even more rapidly and broadly,” added Kieley. “We will focus on growing our team, continuing to innovate our product and maintain our established category leadership position in direct spend management.”
About SourceDay
SourceDay is a Software as a Service (SaaS) solution that automates procurement and purchase order management and supplier collaboration 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 Silverton Partners
From idea to exit, the Silverton team works with exceptional entrepreneurs who are committed to attacking growth markets and building lasting companies. In partnering with Silverton, companies benefit from our deep network and lessons learned over many decades of operating and investing experience. Founded in 2006, Silverton Partners is based in Austin and has been the initial investor behind Convio, WP Engine, SpareFoot, SailPoint, Silicon Labs, TurnKey, The Zebra, AlertMedia, SpyCloud, Convey, Aceable, Big Squid, and Billie among many others. CB Insights has recognized Silverton as the most active venture capital firm in Texas. For more information, visit www.silvertonpartners.com.
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.
