SourceDay Gets $6.5 Million Investment for Its Direct Spend Solution

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Procurement software provider SourceDay on Wednesday announced it has received $6.5 million in Series A funding from three capital venture firms.

The investors — Silverton Partners, Draper Associates and ATX Seed Ventures — focus on start-up companies, said a statement from SourceDay, which was founded in 2013.

SourceDay said it has now raised $10.8 million since the 2015 launch of its software-as-a-service cloud platform, which automates direct spend management, purchase order management and supplier collaboration. The provider integrates its solution with ERP systems to reduce manual operations for suppliers and buyers, the statement said.

The Austin, Texas-based company plans to focus on product development as well as expand its sales and marketing activity, it said.

“Having the financial support and confidence of [the investors] will help us execute our vision even more rapidly and broadly,” SourceDay CEO Tom Kieley said in the statement.

“By replacing outdated manual processes with automated efficiency, manufacturers, distributors and their suppliers are bridging the gaps in productivity, resource management, collaboration and margins.”

Investors said they expect more companies will update the way they manage direct spend.

“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 and 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.”

Morgan Flager, general partner with Silverton Partners, said: “SourceDay’s software is well-timed with the rapidly increasing demand for solutions that digitize the supply chain. We see direct spend purchasing and procurement as areas ready for improvement.”

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  1. Victoria Rothstein:

    SourceDay could be quite a disruptive company in order management if they accomplish their vision. Probably money well invested.

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