London-based startup Vertice has raised $50 million in Series C funding to further develop its artificial intelligence-powered platform, designed to optimize software and cloud spend for businesses. The funding round, led by Lakestar, brings the company's total funding to around $100 million, with a valuation reportedly in the "several hundred millions" range.

Vertice's platform is specifically designed to standardize companies' processes around software and cloud procurement, an area where businesses collectively spend hundreds of billions of dollars annually. The startup's AI-driven technology integrates with a business's data to better understand its software usage, providing suggestions and recommendations to optimize spend. This approach has led to significant growth for the company, with its business expanding 13x since its founding less than three years ago.

The startup's founders, Roy and Eldar Tuvey, bring a strong background in security startups, having previously founded ScanSafe, which was sold to Cisco in 2009, and Wandera, acquired by Jamf in 2021. This expertise has been applied to procurement, enabling Vertice to build a system that uses AI and other tooling to create a comprehensive picture of a company's software needs.

Vertice's platform has already attracted a significant customer base, including chip giant ASML, Euronext, Grant Thornton, and banking behemoth Santander. The company claims that its technology can cut purchasing cycle times in half, resulting in savings of between 20% and 30%. This is achieved through AI-driven contract analysis, benchmark pricing insights, and analytics provided at the point of purchase.

The startup's approach has resonated with investors, particularly in the current economic climate where companies are under pressure to reduce operational costs. "Some of our portfolio companies are using Vertice, and the feedback was overwhelmingly positive," said Georgia Watson, Lakestar partner leading the round. "The pressure on software spend and really needing to bring that down has been a conversation we've been having, and Vertice's solution has been a key part of that."

The market for software and cloud spend is vast, with Gartner predicting that spend will grow more than 9% to reach nearly $5 trillion by 2025. Vertice operates in a crowded space, competing with platforms like Spendbase, Spendesk, Gartner, and G2. However, the startup's focus on AI-driven integration with business data sets it apart, enabling it to provide more accurate and personalized recommendations.

With this latest funding round, Vertice is poised to expand its vision and further develop its platform. As the company continues to grow, it will be interesting to see how its technology is adopted by businesses seeking to optimize their software and cloud spend.