Pactum, an AI-based platform that enables global companies to automate personalised commercial negotiations on a massive scale, announced on Monday the closing of a $3m seed financing round.
The funding round was led by Berlin-based Project A, a V.C. focused on innovative start-ups, with investments by DocuSign (NASDAQ: DOCU) and other previous Pactum investors.
Pactum was founded in 2019 to help companies uncover hidden value in supplier contracts. Many Fortune Global 2000 companies have thousands of vendors with contracts that have been neglected for long periods of time because the value of the contracts are too small and too numerous to warrant proper procurement specialists’ time.
Pactum autonomously negotiates these supplier contracts, which releases significant capital to the bottom line while also improving terms for vendors. Walmart is one of the first customers Pactum is able to disclose.
“We’re happy to announce this round of funding which will bring our technology to more enterprises that need it,” said Martin Rand, Pactum CEO.
“Project A is at the forefront of the most innovative breakthroughs in tech and AI and DocuSign is an iconic brand in the world of agreements, so we feel they provide the perfect balance for us.”
“We are convinced that AI-based systems will shape the future of commercial negotiations. Pactum is well on its way to play an essential role in this future. Therefore we are happy to support this great company,” said Uwe Horstmann General Partner of Project A.
Pactum is working on negotiations in a variety of industries and a majority of its clients are Fortune 500 companies. On average, 74% to 82% of companies interacting with Pactum’s AI prefer it over a conversation with a human. For recent customers, Pactum increased the value of long tail deals by 11% to 27%.
Pactum’s team of analysts begins each project by mapping what they call the “value function” in a given set of negotiations.
This is combined by Pactum’s negotiation chatbot which is capable of autonomously conducting best practice negotiations prepared by Pactum’s negotiation scientists. Once a negotiation is complete, all information is updated automatically in relevant systems such as ERP and CRM.