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SourceDay Secures $6.5 Million Series A Financing from Leading Venture Firms

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. SourceDaystandardizes 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."
Published Wednesday, December 05, 2018 4:34 PM by David Marshall
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