Online marketplace CoProcure, which works for suppliers and buyers of government technology, raised $22 million in a Series A round, according to a Monday, March 7 report from Government Technology.
The move comes as there has been greater pressure to move B2B commerce to the digital world.
Local and state governments have also shifted more tasks to a digital format, due to the pandemic and the acceleration of remote and online working. Digital procurement, according to the report, is also part of this trend.
CoProcure, which was founded in 2018, works to help government officials with “cooperative contracts” that are used by various government agencies, as well as national purchasing cooperatives. Agencies can also piggyback on contracts, the company said.
According to CEO and co-founder Mariel Reed, this is all about solving a problem in the world of government procurement in that there is no central source where buyers of government technology can find suppliers and also access cooperation contracts.
“We’re unlocking all those contracts that have been locked away in digital or physical binders,” she said, according to the report.
The funding round was led by Forerunner Ventures, and other investors included Leadout Capital and Neo. Additionally, angel investors Marco Zappacosta, founder of Thumbtack; Dan Lewis, founder of Convoy; and Katrina Lake, founder of Stitch Fix, joined the round.
PYMNTS wrote that there has been an increased use of digitization among Accounts Payable and Accounts Receivable departments, which may further intensify in the coming years.
See also: 80% of buyer-supplier transactions could be done electronically by 2025
According to the B2B Digital Payments Tracker, a collaboration between PYMNTS and American Express, 80% of buyer-supplier transactions could be done electronically by 2025.
The reinvention was partly due to the aforementioned pandemic, as companies eventually abandoned old, paper-based ways of working. As partners close their doors and conduct more transactions online, this is becoming more common.