Announcing our investment in DemandStar, a marketplace for government procurement  

Jun 16 13:06 2020 Print This Article

Today we’re excited to announce that we led DemandStar’s $2m seed round. The Seattle-based company provides an online marketplace for business-to-government commerce – it connects local and national suppliers with government procurement officers. 

It should come as no surprise that government procurement is riddled with inefficiency. $1.5 trillion is spent in the local government procurement market, but billions are wasted due to scarce competition and outdated processes. Even today, much of government purchasing and bidding relies on manual, paper-based processes. When software is used, it’s old, complicated and not user-friendly. And there hasn’t been a platform to bring government agencies and suppliers together. 

DemandStar opens up this market to a modern process. It creates frictionless connections between government agencies on one hand and suppliers on the other. The DemandStar network is a win for both sides: local businesses can win contracts for projects that they never knew existed, and governments gain access to more competition for cost savings and better value. 

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Version One VC Blog

Version One is an accelerator for innovative start-ups with a fresh approach to solving important and difficult problems. They invest in category leaders that leverage network effects to build a defensible product. Version One has invested in over 50 internet companies such as Frank and Oak. Angel List, Booster, and more.

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