Government procurement in the United States presents a significant opportunity for businesses, with approximately 10% of the federal government’s massive $6.5 trillion annual budget allocated for procurement. This amounts to a staggering $665 billion spent annually on goods and services across various industry sectors.
Despite the vast opportunities, many businesses struggle with the administrative burden of navigating public Request for Proposals (RFPs). This challenge is particularly acute for small businesses, which often lack the resources to effectively uncover, evaluate, and respond to these RFPs. Even large organizations with experienced procurement teams find themselves spending considerable time and effort on bid opportunities, detracting from their ability to fulfill existing contracts. To address these challenges, one AI startup is stepping in to streamline government bidding processes.
Enter Procurement Sciences AI (PSci.AI), a startup based in Washington, D.C., dedicated to developing a cutting-edge bidding intelligence platform for government contractors.
Today, Procurement Sciences AI announced that it has secured $10 million in Series A funding. The funding round was led by Battery Ventures, a global technology-focused investment firm, with additional investment from Tower Research Capital, K Street Capital, and Blu Ventures. Brandon Gleklen from Battery Ventures and Jared Young from Tower Research will join Procurement Sciences’ board of directors.
Founded in late 2022 by CEO Christian Ferreira, Procurement Sciences AI specializes in workflow automation software powered by artificial intelligence. The company’s suite of generative AI-powered automation tools is designed to streamline the entire procurement workflow for business development and proposal teams. By integrating with historical customer data from platforms like SharePoint and Google Drive, Procurement Sciences’ tools significantly reduce the time spent on bidding-related tasks, enabling teams to focus on growth.
The company’s client base includes some of the top defense and aerospace companies, as well as numerous small and medium-sized businesses across various sectors. Recognizing the importance of promoting equity in government procurement, Procurement Sciences offers discounted rates for businesses owned by veterans, women, and minorities, as well as non-profit organizations.
Christian Ferreira, a former Sergeant and Afghanistan veteran of the United States Marine Corps, founded Procurement Sciences based on his firsthand experiences in government contracting. Motivated by the inefficiencies and challenges he encountered in the sector, Ferreira aims to revolutionize the industry’s pain points through the strategic application of artificial intelligence.
With a growing team of 16 members based in the Washington, D.C. area, Procurement Sciences plans to expand its team across software engineering and AI research, as well as development, sales, and customer success. The company seeks to overhaul the traditional government contractor operating model by leveraging AI to streamline processes and improve efficiency.
“We are excited to partner with Christian and the team at Procurement Sciences, who are leveraging cutting-edge AI research to revolutionize the government contracting process,” said Brandon Gleklen from Battery Ventures. “Procurement Sciences’ solutions not only boost efficiency and growth for large contractors but also level the playing field for small businesses seeking to serve our government and communities across the country. We are honored to support Procurement Sciences in their mission.”
Procurement Sciences AI Founder, Christian Ferreira
