Technology funding for procurement solutions is defying the overall technology market: Why, what and where (Part 1)

As overall economic challenges continue to mount, freshly negative indicators and potential for further supply chain disruptions are causing broad market- and tech-sector-specific corrections. Procurement technology companies are not immune to this pain — but they may navigate this downturn with more bright spots than the typical SaaS stock.

In fact, the startup scene for procurement technology remains vibrant, with new ideas and concepts gaining traction (and garnering investment) despite macro challenges in the broader technology sector and stagflationary pressures impacting countries where procurement organizations operate across the globe.

In our work supporting technology selection with procurement/finance organizations and due diligence for private equity teams and corporate development teams (and in our discussions with early-stage investors), we believe procurement technology will still find pockets of success — although perhaps more muted compared with a stronger economic scenario — because of three key factors.