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Government CIO Outlook | Wednesday, June 10, 2020
The seed investment round was led by Neo, with participation from Leadout Capital and other angel investors. With this round of funding, the company has raised a total of about USD 4 million
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Fremont, CA: Government tech startup CoProcure raised USD 2.4 million in a Seed funding round from investors amidst lockdown. As the governments worldwide continue to scramble for new ways to tackle the COVID-19 pandemic, the world is forced to accept a new normal where every aspect of life could be different from as we knew it before the year began. State and local governments are striving to lay their hands on new tech tools as they fear spending restrictions to be applicable in the near future. CoProcure, on the other hand, has experienced an increase in activity amidst the crisis.
[vendor_logo_first]The company develops software that helps governments find and participate in cooperative purchasing. “During this time, we’ve seen a more than 300 percent increase in users, who now use CoProcure from all fifty states,” said CoProcure CEO Mariel Reed. “We’ve also doubled the size of our team.” Cooperative purchasing is a system where governments band together to negotiate better prices on procurements with vendors. Reed said the company hopes to make that process Google-like for governments.
Reed stated that the increase in activity was significant as it takes place when governments are under stress to provide goods and services to constituents quickly. The Seed investment round was led by Neo, with participation from Leadout Capital and other angel investors. With this round of funding, the company has raised a total of about USD 4 million.
"The coronavirus pandemic has irrevocably changed public purchasing: Government budgets already feel increased strain to serve their communities, and community members will continue to depend even more critically on government services," added Reed. “Businesses are counting on government customers as the private sector recovers. CoProcure has an important role to play in helping communities with limited resources work together to respond to these challenges and rebuild.”
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