Commercial negotiation platform providers Pactum today announced in a press release that they’ve successfully raised $3m in a seed funding round. The funding round was led by Project A with participation from DocuSign and existing investors.
Although it was not confirmed what the funding is going to be used for, it’s likely to help the commercial negotiation platform providers with their mission to help companies uncover hidden value in supplier contracts.
Martin Rand, CEO of Pactum expressed what this funding round meant by saying: “We’re happy to announce this round of funding which will bring our technology to more enterprises that need it. 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.”
Mountain View-based Pactum is an AI-based commercial negotiation platform system that enables businesses of all sizes to automate their contracts and negotiations which in turn allows them to offer personalised commercial negotiations or agreements on a larger scale.
Pactum’s AI-based commercial negotiation platform system adds value while reducing wait time for Pactum’s clients and their negotiation partner by aligning their values to determine and automate win-win agreements via an easy-to-use chat interface that implements best-practice negotiation strategies.
The web-based tool’s applications range from supplier negotiations for online marketplaces to enterprise and retail procurement negotiations with each project process starting with Pactum’s team of analysts doing 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.
The funding comes at a time where businesses are keen to improve business processes with ING recently appointing Expert System to improve their business processes using AI and AI commercial insurance platform Planck raising $16m.
The AI-based commercial negotiation platform providers claim that on average, 74% to 82% of companies interacting with Pactum’s AI-based commercial negotiation platform prefer it over a conversation with a human. For recent customers, who include Walmart, Pactum state that they increased the value of long-tail deals by 11% to 27%.
Countless Fortune Global 2000 companies have thousands of vendors with contracts that have been neglected for long periods of time due to the value of the contracts being too small and numerous to justify procurement specialists’ time and fees, something which Pactum aims to help with.
“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 was built by luminaries from Skype, Starship Technologies, and the Government of Estonia’s e-Residency program with the company being backed by the founders of Skype and TransferWise who are now joined by DocuSign and Project A.
