Sagetap, a startup focused on using artificial intelligence (AI) to match enterprise software buyers and sellers, has announced that it has raised $6.8 million in seed funding. The company aims to create an AI-driven marketplace for enterprise software procurement, addressing the pain points for overwhelmed technology executives and unknown software vendors.
The idea for Sagetap came from the founders’ experiences working at earlier stage enterprise software companies, where a large portion of expenses went towards sales and marketing. However, traditional sales tactics like cold emails and LinkedIn messages were yielding diminishing returns. This led the founders to believe that a marketplace for enterprise software, similar to Uber and Airbnb, was necessary.
Sagetap’s platform allows technology executives to create anonymous profiles with details about their technology stack, cloud infrastructure, initiatives, and success criteria. The AI-powered recommendation engine then matches them with the most credible and relevant vendors. The buyers and sellers can meet in 30-minute introductory Zoom meetings hosted on Sagetap, with the buyer’s identity shielded.
The platform has gained early traction, with over 5,000 “verified technology executives” from companies like Nvidia, JPMorgan, and Airbnb using Sagetap. Many have stated that Sagetap has become their preferred way to meet new vendors, as they no longer respond to cold emails or LinkedIn messages.
To differentiate itself from established industry analyst firms like Gartner, Sagetap offers a more targeted service powered by AI and built around direct, anonymous interactions between buyers and sellers. The goal is to provide deep understanding of each unique buyer and recommend products that can address their specific needs and pain points.
However, Sagetap faces the challenge of building liquidity and reaching critical mass on both sides of its marketplace. It needs to convince buyers that its AI can surface worthwhile new vendors and persuade sellers that it can connect them with the right decision-makers. Nonetheless, the startup has received $6.8 million in funding from investors, including its own customers, which shows confidence in its platform’s early traction.
If Sagetap’s vision plays out, it could accelerate the consumerization of enterprise software buying, allowing individual developers and business units to quickly procure the tools they need. However, the enterprise software procurement process is complex and often mediated by analyst firms, requests for proposals, proofs of concept, and vendor bakeoffs. Sagetap will need to prove that their AI algorithm can reliably replace this process.
Overall, Sagetap’s AI-driven marketplace has the potential to revolutionize enterprise software procurement by providing a targeted service powered by AI and facilitating direct interactions between buyers and sellers. With its recent funding, the startup has the opportunity to modernize software procurement for both buyers and sellers while addressing the pain points of the industry.