Pactum, a Silicon Valley-based software developer with Estonian roots, has raised $20 million in venture capital from a consortium of backers led by Karma Ventures. This investment will enable the startup to extend its support for procurement teams globally.
- Founded in 2019 by Estonian entrepreneurs Martin Rand, Kaspar Korjus, and Kristjan Korjus, Pactum develops a solution using advanced mathematical models, cognitive science, negotiation techniques, and intelligent bots to digitally engage third parties and negotiate mutually-benefiting contracts, leading to better pricing, payment terms, and supply continuity.
- The company is based in Mountain View with engineering and operations in Estonia. Pactum also claims that its autonomous bots can contact thousands of suppliers simultaneously seeking the best pricing and terms for routine corporate purchases in logistics and a wide range of other sectors. Among its clients are Maersk, Walmart, Vodafone, and Veritiv.
Who supported the investment?
- The fresh round was led by Tallinn-based Karma Ventures, an early-stage venture capital firm, specialised in late seed and A round investments in Europe’s deep-tech software startups.
- An existing Vienna-based venture capital group 3VC also participated in the round, together with Atomico, a European Venture Capital firm headquartered in London, with offices in Paris, Berlin, and Stockholm, Project A, an early-stage tech investor with offices in Berlin and London, an Estonian VC fund SuperAngel, and a Budapest-based Portfolion, the venture capital and private equity arm of OTP Bank Pactum.
The investment round brings its total fundraising to $55 million. In December 2022, Pactum raised €19 million.
Pactum will use the funding round to accelerate additional research and development into autonomous negotiations, refine autonomous negotiation tools specifically for procurement teams, and develop initiatives to help upskill procurement professionals.
