Sagetap, a startup leveraging artificial intelligence to connect enterprise software buyers and sellers, has announced a successful raise of $6.8 million in seed funding. The company is developing the first AI-driven marketplace for enterprise software procurement, designed to alleviate challenges faced by overwhelmed technology executives and less-known software vendors seeking to expand their sales pipelines.
“What we’re building with Sagetap is the first AI-driven marketplace that matches buyers and sellers of enterprise software,” said CEO and co-founder Sahil Khanna in an exclusive interview. “Rather than a focus on procurement, I’d describe this initiative as a discovery platform.”
Sagetap’s platform categorizes key vendors across various enterprise technology segments, analyzing publicly available data, customer reviews, and anonymized user interactions to identify relevant solutions tailored to each buyer's unique needs and objectives.
Addressing Challenges for Software Buyers and Sellers
The concept for Sagetap emerged from Khanna and his co-founder’s experiences in early-stage enterprise software firms, where up to 50% of expenses were directed toward sales and marketing. Traditional sales tactics, such as cold emails and LinkedIn messaging, provided diminishing returns.
“The technology is advanced, but their sales methods haven’t evolved in decades,” Khanna noted. “A marketplace similar to Uber or Airbnb for enterprise software was inevitable.”
On Sagetap, technology executives anonymously create profiles detailing their technology stack, cloud infrastructure, initiatives, and success criteria. The AI-driven recommendation engine matches them with the most credible and relevant vendors. These connections culminate in 30-minute introductory Zoom meetings hosted by Sagetap, ensuring buyer anonymity.
Technology buyers can create detailed profiles that specify their role, company attributes, technology environment, and ongoing initiatives. Vendors receive ratings from buyers they meet, which are aggregated into an overall score to assist other buyers in assessing credibility and relevance.
“With this platform, I can constantly explore innovative technologies without feeling pressured to buy,” Khanna remarked.
Vendor Vetting and Initial Success
Sagetap maintains a database of 14,000 software vendors supported by leading venture capital firms. Vendors are vetted through a mix of publicly available data and proprietary anonymized insights from platform interactions. Those wishing to launch campaigns must undergo an additional screening process.
Over 5,000 verified technology executives from renowned companies like Nvidia, JPMorgan, and Airbnb are already utilizing the platform. Many have expressed that Sagetap is their preferred method for discovering new vendors.
“They no longer respond to cold emails or LinkedIn messages,” Khanna explained. “They connect with vendors through Sagetap, which has become their preferred medium.”
Transforming Enterprise Software Procurement
To distinguish itself from established industry analysts like Gartner, Sagetap offers a targeted service driven by AI and rooted in direct, anonymous exchanges between buyers and sellers. “Buyers gain a deep understanding of other organizations, their environments, needs, and pain points, along with recommendations for products that truly meet their requirements,” Khanna said.
However, Sagetap faces the challenge of establishing liquidity and achieving critical mass on both sides of its marketplace. To build traction, it must demonstrate that its AI can effectively identify valuable new vendors and convince sellers that it can connect them with the right decision-makers to enhance their sales pipelines.
The seed funding round was spearheaded by NFX, with contributions from Uncorrelated Ventures and Emergent Ventures. Notably, $1 million of the funding came from Sagetap's own customers, including executives from Oracle, Dell, and SecureFrame, reflecting strong confidence in the platform’s early momentum.
If Sagetap’s vision materializes, it could accelerate the consumerization of enterprise software purchasing, enabling individual developers and business units to quickly acquire necessary tools. However, change in the enterprise sector is often slow, with software procurement typically involving analyst firms, requests for proposals, proofs of concept, and vendor evaluations.
Sagetap must prove that its AI can effectively streamline this complex process. With $6.8 million in funding, the startup has the resources to modernize the software procurement landscape for both buyers and sellers.
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