Procurement Sciences AI (PSci.AI), a next-generation bidding intelligence platform for government contractors, today announced that it has raised $10 million in Series A funding. The funding round was led by global, technology-focused investment firm Battery Ventures, with follow-on investment from Tower Research Capital and new funding from K Street Capital and Blu Ventures. Brandon Gleklen from Battery Ventures and Jared Young from Tower Research will join the Procurement Sciences board of directors.
The opportunities in government procurement are vast: about 10% of the U.S. federal government’s $6.5 trillion annual budget is allocated for procurement. However, the administrative burden of uncovering, evaluating, and responding to public RFPs is unmanageable for many businesses, even with the increased number of available contracts, which puts small businesses at a considerable disadvantage. Even large organizations with experienced procurement teams are forced to spend much time and effort parsing and responding to bid opportunities, reducing the capacity to deliver on existing contracts.
Veteran-founded Procurement Sciences developed a suite of generative AI-powered automation tools designed for streamlining the entire procurement workflow of business development and proposal teams, from bid discovery through proposal writing to compliance review. And by directly integrating with historical customer data in SharePoint, Google Drive, and other common data sources, Procurement Sciences’ tools significantly reduce the time spent on various bidding-related tasks by over 90% and tackle the biggest bottlenecks teams face, thus acting as a powerful force multiplier for growth.
Some of the company’s current customers include several of the top 20 largest defense and aerospace companies, as well as over one hundred small and medium-sized businesses across every sector that sell to the government. In recognizing the importance of promoting equity in government procurement and making AI affordable and accessible to companies of all sizes and types aiming to sell to the government, the company provides significantly discounted rates for businesses owned by veterans, women, and minorities and for non-profit organizations.
Christian Ferreira (founder and CEO of Procurement Sciences AI), a distinguished former Sergeant and Afghanistan veteran of the United States Marine Corps, transitioned from military service to a career in government contracting. And after spending nearly a decade in various capacities across large government contractors, ranging from engineering to director-level management, he identified significant inefficiencies and challenges within the sector. Inspired by these firsthand experiences, he founded Procurement Sciences in late 2022 with the goal of transforming the industry’s pain points he had encountered as a contractor.
Based in the Washington, D.C. area, Procurement Sciences rapidly expanded to a team of 16 members. With the latest funding round, the company plans to expand its team across software engineering and AI research, in addition to development, sales, and customer success. The goal is to overhaul the traditional government contractor operating model through the strategic application of artificial intelligence, streamlining processes, and improving efficiency across the board.
KEY QUOTES:
“We launched Procurement Sciences with the mission of addressing the industry’s biggest pain points by adopting a generative AI-first approach. As former government contractors ourselves, we deeply understood the challenges faced in this field. By leveraging generative AI — a technology that leapfrogs traditional software solutions — we’ve been able to rapidly transform the industry and introduce unprecedented efficiency gains.”
“Government procurement is notably competitive and often seems out of reach for many small to medium-sized businesses that lack the necessary expertise and time to identify suitable bids, let alone prepare a compelling proposal. With our AI-powered tools, government contractors can now reallocate their time and energy towards more effectively delivering goods and services.”
– Christian Ferreira, founder and CEO of Procurement Sciences AI
“We are excited to partner with Christian and the team at Procurement Sciences, who are turning cutting-edge AI research into practical solutions for the government contracting process. The Battery team has long explored areas where AI could revolutionize specific operational workflows, with a particular eye to government contracting as a sector of interest. Procurement Sciences boosts efficiency and growth for the largest contractors while also helping to level the playing field for small businesses seeking to serve our government and communities across the country. We are honored to partner with Procurement Sciences to support that mission.”
– Brandon Gleklen, Battery Ventures principal
