Total amount raised
$67.1 Millions
Latest funding date
02/01/2022
Location
Tropic has successfully raised funds through multiple rounds, with the latest being a Series B round closed on February 15, 2022. The company is backed by 10 investors, including notable names like Insight Partners and Founder Collective.
Keep reading to explore the intricacies of Tropic's fundraising journey and the investors backing this innovative platform.
What Is Tropic?
Tropic, founded on May 28, 2019, is a software platform based in New York, New York, offering full-service procurement solutions for tech-forward companies. The company was established by David Campbell and Justin Etkin.
With a team of 251-500 employees, Tropic empowers finance and procurement teams to manage tech spending efficiently. Their platform integrates unbiased market data with spend management tools to help buyers reduce costs, boost efficiency, and maintain visibility.
Tropic's intelligent spend management solution is powered by AI, providing features like spend forecasting, contract management, supplier intake, and shadow IT management. The platform ensures that product quality drives success by balancing the buyer-seller dynamic.
How Much Funding Has Tropic Raised?
- Seed Round
- Amount Raised: $2.1M
- Date: April 2020
- Lead Investors: Founder Collective
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company's foundation and develop its initial product offerings.
- Series A
- Amount Raised: $25M
- Date: August 2021
- Lead Investors: Canaan Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's capabilities.
- Series B
- Amount Raised: $40M
- Date: February 2022
- Lead Investors: Insight Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the global footprint, add staff, and launch new software modules.
Total Amount Raised: $67.1M. Current Valuation: Not publicly disclosed.
Key Investors
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm that invests in growth-stage technology and software companies. The firm has a strong track record of helping companies scale and achieve significant growth.
- Investment Focus Areas: Software, Internet, Data
- Notable Investments: Shopify, Twitter, Qualtrics
- Canaan Partners
- Details: Canaan Partners is an early-stage venture capital firm that invests in entrepreneurs with visionary ideas. The firm focuses on both technology and healthcare sectors, aiming to support companies from seed to growth stages.
- Investment Focus Areas: Technology, Healthcare, Fintech
- Notable Investments: LendingClub, Match.com, Ebates
- Founder Collective
- Details: Founder Collective is a seed-stage venture capital fund built by founders for founders. The firm aims to be the most aligned fund for founders at the seed stage, providing not just capital but also mentorship and support.
- Investment Focus Areas: Technology, Consumer, Healthcare
- Notable Investments: Uber, BuzzFeed, PillPack
What's Next for Tropic?
As Tropic looks to the future, the opportunities are vast. The company plans to expand its global footprint, build its team, and launch four new software modules. With the cloud software market projected to reach $700 billion, Tropic is well-positioned to capitalize on this growth. The addition of high-profile clients like Notion and Nextdoor further underscores its potential.
Future fundraising seems likely given the company's rapid revenue growth and ambitious expansion plans. However, challenges such as competition from other procurement platforms and the need to continuously innovate will require careful navigation. Tropic's ability to manage these hurdles will be crucial in maintaining its upward trajectory.
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